As one of the largest insurance companies in the world, Allstate handles millions of claims every year. Allstate offers a variety of different types of insurance to consumers in Florida, including homeowners insurance, auto insurance, business insurance and more.
Although Allstate pays a large number of claims each year, the company continues to make significant profits. In fact, Allstate made nearly 2 billion dollars in profits during 2016. In order to make these significant profits, Allstate has to minimize the amount of money it pays out in claims, often to the detriment of policyholders and other victims.
Because of the way Allstate handles its customers, Justice.org designated this insurance company as one of the worst in the United States. According to this report, Allstate’s emphasis on shareholder earnings over the welfare of policyholders had led to some bad practices. The company employs a “boxing gloves” strategy against its own policyholders, as well as any third parties who might be entitled to a payout, in order to minimize the amount of money it loses to settlements.
Allstate’s approach in the handling of claims and settlements has led to problems for the company in the past. In fact, a settlement was recently reached in a case alleging that Allstate failed to comply with Florida law when paying personal injury protection benefits for certain claims.
The Settlement Process
At the beginning of the settlement process, Allstate usually starts off by offering a lowball settlement. The amount of this settlement is determined by a computer algorithm known as “Colossus,” which calculates the settlement based on the numbers associated with the case. While this system considers the claimant’s age, the type of injury and the claimant’s lawyer’s track record, it fails to consider any subjective evidence, such as the impact the incident has had on the victim’s life.
Clients who accept this initial settlement offer will receive Allstate’s promised “good hands” treatment. However, in most cases, they won’t have enough money to cover all of their expenses.
If a client doesn’t accept this initial settlement, Allstate changes its approach. Instead of negotiating a fair settlement, Allstate uses hardball litigation tactics to avoid paying at all costs. According to the information released by Justice.org, former Allstate employees describe this strategy as the “three D’s”: deny, delay and defend.
Dealing with Allstate
Allstate may not be the best insurance company to deal with in Florida. However, you can still receive a suitable settlement offer if you have the right attorneys on your side. If Allstate refuses to negotiate a fair settlement, it’s also possible to win the compensation you deserve at trial. In many cases, even cases set for trial may be settled out of court at some point. Thus, if you are planning to file a claim against this company, there is no need to feel defeated or discouraged about your chances of receiving compensation.
Allstate Settlements in Florida
Allstate’s initial settlement offers are often low. However, in many cases, a lawsuit can significantly increase the amount of money the claimant receives. Here are some Allstate cases that have been won or settled:
- A woman was rear-ended while driving her car. After rejecting Allstate’s initial settlement offer, she received a $200,000 settlement from the insurer. This amount was agreed upon in mediation the night before her trial was set to begin.
- An accident involving a car and a motorcycle left one man paralyzed. The victim requested the $100,000 policy limit from Allstate, but the insurer refused to comply, offering only $34,000. A California court ultimately awarded the victim $14 million.
- A child suffered facial injuries after being bitten by a dog. The court ultimately approved a $40,000 settlement from Allstate, which was the dog’s owner’s insurer.
Seeking Counsel from an Attorney
If you or a loved one has suffered a loss that should be covered by Allstate, you need an experienced attorney on your side to give you the best chance of getting the settlement or verdict you deserve. If you don’t have proper representation, Allstate will do everything in its power to pay you as little money as possible, even if that means delaying your case and/or being confrontational about the incident.
To get the help you need, please contact Kaire & Heffernan, LLC today.