Disclaimer: This document highlights concerns with certain insurance companies and provides solutions to navigate these challenges. If you’re dissatisfied with your current provider, check out our recommended insurers [Here].

Insurance Companies We Recommend Avoiding

Key Findings

We’ve identified several insurance companies with problematic claim-handling practices, particularly related to the appraisal clause.

1. Allstate

• Delays: Appraisers often take up to 120 days to resolve disputes.
• Weakened Clause: Removes “binding” from appraisal clauses, reducing enforceability.
• Biased Appointments: Selects appraisers and umpires favorable to Allstate.
• Claim Manipulation: Uses the appraisal process to minimize payouts.

2. Auto-Owners Insurance

• No Appraisal Clause: Disputes over repair estimates, ACV, or diminished value must be resolved through legal action.
• Diminished Value Waivers: Agents may encourage waiving diminished value claims for reduced premiums.

3. State Farm

• Restricted Appraisal Clause: Limits to ACV claims, excluding diminished value and repair-related disputes.
• Consumer Impact: Forces consumers to pursue costly litigation for disputes.
• Alabama State Farm: No total loss appraisal clause, making it difficult for clients when vehicles are totaled.

4. Safeco & ALFA

• No Appraisal Clause: Policies lack an appraisal clause.
• Consumer Burden: Policyholders must accept settlement offers or pursue legal action.

5. Donegal

• Conditional Diminished Value Claims: Denies claims if repairs were done by a third-party insurer without Donegal inspection.

6. AAA-Memic and Turo

• Diminished Value Exclusion: Policies exclude diminished value coverage.
• Appraisal Clause Limitations: Used only for Total Loss ACV claims.

7. MileAuto & Trexis (Owned by ALFA)

• Conditional Appraisal Clause: Requires mutual agreement to activate.
• Insurer Refusal: Insurers can refuse to activate the clause, forcing legal action for disputes.

8. Commercial Insurance Policies (e.g., Kemper Lula, Auto-Owners)

• Kemper Commercial: No payout for diminished value, cannot be pursued civilly.
• Auto-Owners: No appraisal clause, likely needing lawsuits to resolve total loss and diminished value.

9. Mendota Insurance

• Mendota does not provide coverage for diminished value; however, assistance with total loss disputes is available.

Consumer Guidance

These findings reveal significant challenges consumers may face with certain insurers. If you’re affected by these practices, we’re here to help.

• Next Steps: See flowcharts for guidance on filing claims.
• Contact Us: Reach out with questions or for a policy review.