Insurance Companies to Avoid
Disclaimer: While the concerns below highlight potential issues with certain insurance companies, we offer solutions to help you navigate these challenges. These concerns are shared to raise awareness about policy manipulations by these insurers. If you’re dissatisfied with your current provider, please check out our recommended insurance companies [Here].
Insurance Companies We Recommend Staying Away From
Companies of Concern – Key Findings
Through extensive experience and customer feedback, we’ve identified several insurance companies whose claim-handling practices may fall short of fair consumer standards, particularly concerning the appraisal clause. This clause is critical for resolving disputes over claim values. Below are the key findings for each company:
1. State Farm
- Restricted Appraisal Clause: Limits the appraisal clause to Actual Cash Value (ACV) claims, excluding diminished value and repair-related disputes.
- Consumer Impact: This limitation often forces consumers to pursue costly litigation to resolve disputes.
2. Auto-Owners Insurance
- No Appraisal Clause: Policies lack an appraisal clause, leaving disputes over repair estimates, ACV, or diminished value to be resolved through legal action.
- Diminished Value Waivers: Some agents reportedly encourage policyholders to waive diminished value claims in exchange for reduced premiums, potentially undermining consumer rights.
3. Allstate
Allstate exhibits several troubling practices related to the appraisal process:
- Delays: Employs appraisers who prolong proceedings, often taking up to 120 days to resolve disputes.
- Weakened Clause: Removes the term “binding” from appraisal clauses in some policies, reducing enforceability.
- Biased Appointments: Selects appraisers and pushes for umpires favorable to Allstate, compromising neutrality.
- Claim Manipulation: Frequently uses the appraisal process to minimize payouts.
4. AAA-Memic and Turo
- Diminished Value Exclusion: Policies explicitly exclude diminished value coverage, leaving no recourse for recovering post-repair losses.
- Appraisal Clause Limitations: Appraisal clauses can be used only for Total Loss ACV claims.
5. Donegal
- Conditional Diminished Value Claims: Denies diminished value claims if repairs were completed by a third-party insurer and Donegal did not inspect the vehicle beforehand.
6. Safeco & ALFA
- No Appraisal Clause: Policies lack an appraisal clause entirely.
- Consumer Burden: Policyholders are forced to either accept the settlement offer or pursue legal action, creating a costly and burdensome process.
7. MileAuto & Trexis (Owned by ALFA)
- Conditional Appraisal Clause: Policies include an appraisal clause that requires mutual agreement between the policyholder and insurer to activate.
- Insurer Refusal: Insurers can refuse to activate the clause, effectively nullifying it and forcing consumers to pursue legal action for dispute resolution.
8. Commercial Insurance Policies (e.g., Lula, Auto-Owners, and Others)
- Policy Limitations: Some commercial policies include unique restrictions that may limit claim options.
- Recommendation: Share your policy with us for review to identify potential issues before proceeding.
Consumer Guidance
These findings reveal significant challenges consumers may face when dealing with certain insurers. If you’re affected by these practices or have concerns about your policy, we’re here to help.
- Next Steps: See the attached flowcharts for guidance on filing claims and navigating these obstacles.
- Contact Us: Reach out with any questions or for assistance in reviewing your policy.