10 Worst Car Insurance Companies You Must Know

There is a list of the ten worst insurance companies made by the American Association of Justice o AAJ. Each name on the list is supported by details as to why it’s included in the list. Specifically, AAJ has considered claim denials, increase in premium costs and refusal to write insurance to those who really need it. You may even be surprised as to why some companies are mentioned on the list.

Researchers behind the recent report of AAJ, which is entitled The Ten Worst Insurance Companies in America – How They Raise Premiums, Deny Claims and Refuse Insurance to Those Who Need It Most, has made an investigation on numerous court documents and records from various government bodies such as Federal Bureau of Investigation (FBI),  Securities & Exchange Commission, and state insurance departments.

The lists as well as the conclusions of the report regarding the insurance industry were contributed by the relevant news reports and testimony from the former agents and adjusters of the insurers. You may visit http://www.justice.org/docs/TenWorstInsuranceCompanies.pdf to get a full version of the report. Here, you will view the lists of top 10 worst insurers and corresponding explanations as to why they are on the list.

Conclusive Statements about the industry as a whole

Here is the list of conclusions made by AAJ about the insurance industry:

  • Companies consider profits as priority over policyholders. The saying “action speaks louder than words” doesn’t apply to many insurance companies according to the report. They may tell you how you are in good hands with them, but you’ll realize that they’re only good at talking rather than serving their clients.
  • Denial, delays and defense are expected from companies. Insurance companies want to ensure stable or higher net earnings, that is why they constantly, deny, delay and defend claims in order to regulate the number of claims they pay out. These unethical moves simply reflect on the whole industry.
  • Increasing salaries and profits. The U.S. insurance industry in general is a recipient of over $1 trillion worth of premiums annually, with $3.8 trillion in assets – not to mention the fact that the average annual profit of the property/casualty and life insurance industries alone is $30 billion. Based on the report, the ten insurers pay their Chief Executive Officers (CEOs) $9 million annually on average (as of 2007).


Who’s on the list?

These ten companies below have been reported to constantly deny claims, raise premiums, and refuse insurance to those who really need it among other reasons, thus making them the worst insurers in America:

  1. Allstate
  2. Unum
  3. AIG
  4. State Farm
  5. Conseco
  6. WellPoint
  7. Farmers
  8. United Health
  9. Torchmark
  10. Liberty Mutual

You can learn more about why a certain insurer has been included in the list by clicking on its name above.

Insurance companies – Playing by their own rules

Insurance companies obviously play by their own rules, specifically those who can save them money. You can better understand this matter by viewing the video entitled “Insurance Company Rules” on YouTube. This video is a satirical piece about the general public using those rules and the circumstances of such action. The video was made by between Health Care for America Now (HCAN) and the Public Service Administration (PSA).