Worst Insurance Companies For Bad Faith

The American Association for Justice (AAJ) annually ranks what it considers to be the "worst" insurance companies for consumers when it comes to negotiating in good faith. According to the AAJ, researchers analyzed decades of court document records, SEC and FBI records, state insurance department investigations, and testimony and depositions of former insurance agents and adjusters in order to evaluate individual insurance companies' reputations for engaging in bad faith tactics.

Our attorneys fight with the insurance companies on behalf of our clients on a daily basis, but some insurance companies are even worse than others when it comes to paying fair settlements to injured victims. The AAJ's nationwide ranking for the ten worst insurance companies in the United States based on these criteria are:

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

If you or a loved one is experiencing difficulty negotiating your personal injury claim with the insurance companies after an auto accident or other type of incident, the award-winning attorneys at Davis Law Group can help you better understand your legal rights and determine if hiring an attorney is in your best interests.

Worst Auto Insurers In Washington State

The Washington State Office of the Insurance Commissioner (OIC) investigates complaints made by policyholders and claimants against insurance companies who do business in Washington state. When appropriate, the OIC can impose fines, order reimbursement payments, or take other actions against insurance companies who engage in bad faith business practices.

Each year, thousands of Washingtonians file complaints with the OIC against insurance companies. Below is a list sorting the most number of complaints for the 10 worst car insurance companies in Washington State in 2016, the most recent year for which this data is available.

  1. State Farm - 290 complaints filed​
  2. Geico - 246 complaints filed
  3. Progressive - 181 complaints filed
  4. Allstate - 154 complaints filed
  5. First National Insurance - 103 complaints filed
  6. USAA - 103 complaints filed
  7. Farmers - 63 complaints filed
  8. Pemco - 61 complaints filed
  9. Mutual of Enumclaw - 50 complaints filed
  10. Safeco - 37 complaints filed

Source: Private Passenger Auto Insurance Company Complaints, Insurance Commissioner of Washington State

If you experience difficulties with an insurance company, the Washington State Office of the Insurance Commissioner (OIC) can investigate the circumstances to determine if the insurance company failed to follow Washington state insurance laws and abide by the contractual terms of your policy. 

This process typically only addresses potential repercussions and forms of punishment that could be assessed against the insurance company. To pursue a civil insurance bad faith claim against the insurance company and achieve justice for your auto accident or personal injury case, you should consult with the award-winning personal injury attorneys at Davis Law Group. 

Common Insurance Bad Faith Complaints

unfair settlement offer from insurance companyInsurance companies use a variety of deceptive and unethical tactics with the goal of frustrating claimants to the point that they will grow frustrated and be more likely to accept a lower settlement offer. There are a number of different tactics that have been reported, but the more common tactics we see at Davis Law Group are listed below:

  • Claim Delay: Insurance company has unreasonably delayed the investigation and/or processing of a claim.
  • Delayed Payment: Insurer fails to promptly provide payment to the injured person in order to settle the claim.
  • Claim Denial: Outright denial of the claim, even if the claim is perfectly valid. 
  • Claims Fraud: A claim-related deception or unfair practice to avoid payment.
  • Contributory/Comparative Negligence: Unfair or false assessment of negligence, fault or application contributory negligence laws.
  • Adjuster Problems: Claims adjuster handles the claim unsatisfactorily.
  • Misrepresentation: Insurance company or its representative made misleading or untrue statements about the policy’s terms, benefits, or about insurance during the marketing and sales processes.
  • Unfair Settlement Offer: Insurer's settlement offer was deliberately below fair value and would not make the claimant whole.
  • Pre-Existing Condition Denial: Insurance company improperly denied a claim based on a pre-existing condition.
  • Medical Necessity Denial: Insurer improperly denied coverage by saying treatment was medically unnecessary.
  • Usual, Customary & Reasonable (UCR) Charges: Insurance company's "usual, customary and reasonable" reimbursement amounts are inadequate.
  • Subrogation: Improper subrogation activity by the insurer.

It may be difficult to determine exactly which tactics an insurance company is using to devalue your case. The bottom line is that if you believe the insurance companies are not cooperating with you in a fair manner to resolve your personal injury claim, it may be in your best interests to consult with an attorney.

Unsurance: The Ugly Truth About Unethical Business Practices

In addition to being one of the most recognized personal injury law firms in Washington state, Davis Law Group is also known for creating and providing free informational reports to injured victims designed to educate them about the legal issues and challenges involved in the insurance claims process. In an effort to expose and better explain the unethical business practices that plague the U.S. insurance industry, attorney Chris Davis has published a report titled, Unsurance: The Ugly Truth about Unethical Business Practices in the U.S. Insurance Industry. This report highlights some of the disturbing business strategies employed by these corporations.

"I wrote Unsurance because there is no such thing as a 'good neighbor' who is 'on your side' with 'good hands' holding an 'umbrella' that will keep you and your pet gecko dry when mayhem strikes. Unfortunately, you'll have to take 'responsibility' for yourself—which also means that you may have to hire a lawyer. I think that people deserve to know the truth about the insurance industry and how it works."   - Chris Davis, Attorney at Law

Download FREE PDF

Free Bad Faith Legal Consultation

If you or a loved one has been injured due to the negligence of another person or entity and the insurance companies are not cooperating fairly, it is likely in your best interests to consult with an experienced personal injury attorney. Our award-winning legal team can help you better understand your legal rights and determine if hiring a lawyer is in your best interests. 

Davis Law Group's legal team works on a contingency fee basis, so there are no up-front costs and you only owe attorney's fees once we have secured a financial recovery on your behalf. We will review your case absolutely free, just call our office in Seattle at (206) 727-4000 or use the confidential contact form on this page to request a free legal consultation.