Insurance Companies to Avoid

Insurance companies we recommend avoiding

We’ve identified several insurers with problematic claim-handling practices — particularly around appraisal clauses, diminished value coverage, and total loss disputes. Understanding these limitations before a claim can save you significant time and money.

11

Insurers flagged

4

No appraisal clause

3

DV excluded or denied

2

Biased appraisal process

Key findings by insurer

Auto-Owners Insurance(No appraisal clause, DV waiver risk)

• No appraisal clause — Disputes over repair estimates, ACV, or diminished value must be resolved through legal action.
• Diminished value waivers — Agents may encourage policyholders to waive DV claims in exchange for reduced premiums.

In plain English

If you disagree with the cost of repair, the ACV, or the diminished value of your vehicle, you can try to argue — but they will likely say no. At that point, a lawsuit may be your only option.

State Farm(Restricted appraisal clause, DV disputes excluded)

• Restricted appraisal clause (Georgia) — Limited to total loss ACV claims only. Diminished value and repair cost disputes are excluded.
• Litigation as the only recourse — If State Farm refuses to resolve disputes amicably, consumers are often forced into costly lawsuits.
• Alabama: no appraisal clause — No total loss or repair cost appraisal clause exists in Alabama policies, making totaled-vehicle disputes especially difficult.

In plain English

In Georgia, if you disagree with repair costs or your vehicle's diminished value, State Farm will likely say no — and a lawsuit may be your only path forward.

Liberty Mutual(No appraisal clause, Policy changed Jan 2026)

• Recent policy change (~January 2026) — Liberty Mutual removed its appraisal clause. Prior policies were not structured this way — this is a new development.
• No appraisal clause — Disputes over repair estimates, ACV, or diminished value must now be resolved through legal action.

In plain English

If you disagree with a repair cost, ACV, or diminished value figure, Liberty Mutual will likely say no — and your only remaining option may be a lawsuit.

Safeco, ALFA & Horace MannSimilar to Auto-Owners, but without the DV waiver requirement(No appraisal clause)

• No appraisal clause — Policies lack an appraisal clause, meaning policyholders must accept settlement offers or pursue legal action.
• Consumer burden — Regardless of the specifics, these policies are structured in a way that heavily favors the insurer.

In plain English

If you disagree with the cost of repair, ACV, or diminished value, you can try to argue — but they will likely say no, and a lawsuit may be your only recourse.

Allstate(Up to 120-day delays, Weakened clause, Biased appraisers)

• Significant delays — Appraisers often take up to 120 days to resolve disputes.
• Weakened appraisal language — Removes the word "binding" from appraisal clauses, significantly reducing enforceability.
• Biased appointments — Selects appraisers and umpires known to favor Allstate's position.
• Claim manipulation — Uses the appraisal process strategically to minimize payouts.

Geico(Up to 120-day delays, Biased appraisers)

• Significant delays — Appraisers often take up to 120 days to resolve disputes.
• Biased appointments — Selects appraisers and umpires favorable to Geico's interests.
• Claim manipulation — Uses the appraisal process to minimize payouts.

Donegal(Conditional DV claims)

• Conditional diminished value claims — Denies DV claims if repairs were performed by a third-party insurer without a prior Donegal inspection.

AAA-Memic & Turo(DV excluded, Limited appraisal clause)

• Diminished value excluded — Policies explicitly exclude diminished value coverage.
• Appraisal clause limitations — The appraisal clause applies only to total loss ACV claims.

MileAuto & Trexis (owned by ALFA)(Conditional appraisal clause)

• Requires mutual agreement to activate — The appraisal clause only activates if both parties agree — meaning the insurer can simply refuse to invoke it.
• Insurer can block the process — If the insurer declines to activate the clause, consumers are forced into litigation to resolve any dispute.

Commercial policies (Kemper, Auto-Owners)(No DV payout, No appraisal clause)

• Kemper Commercial — no diminished value — No payout for diminished value, and this cannot be pursued civilly under commercial policy terms.
• Auto-Owners Commercial — no appraisal clause — Total loss and diminished value disputes will likely require lawsuits to resolve.

Mendota Insurance(No DV coverage, Total loss help available)

• No diminished value coverage — Mendota does not provide coverage for diminished value claims.
• Total loss assistance available — Help with total loss disputes is still available for Mendota policyholders.