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Allstate’s 5 Sins: Profit-boosting tactics that harmed auto accident victims

June 27, 2011 by Steven M. Gursten

Michigan insurance lawyer addresses the new Allstate Insurance “claims satisfaction guarantee”

Last week, I wrote about Allstate’s new “claims satisfaction guarantee.” As I said, after years of abusing car accident victims with low settlement offers, unjustifiable refusals to pay No-Fault insurance benefits, unpredictable benefit cut-offs and underhanded litigation strategies; Allstate now wants us to believe it is a gentle auto insurance giant that’s concerned about its customers’ claims experiences.

Of course, this is after the recent settlement – and millions of dollars in payments – that Allstate made with state attorney general offices around the nation earlier this year for documented, serious abuses in its claims handling processes.

Maybe Allstate is repenting for all of this bad behavior and the 5 sins below. But, after nearly 20 years as an insurance lawyer (and suing Allstate for its claims handling procedures), I would guess to venture – probably not.

Here is my list list of Allstate’s five sins:

1. Using Colossus software to reduce payouts to injured auto accident victims, thus increasing corporate profits.

2. Targeting auto accident victims who had the “audacity” to hire an insurance lawyer to protect them and their rights to auto No-Fault benefits.

3. Targeting medical care providers who treat car accident victims to drive them out of business.

4. Using alleged corporate irregularities as justification to refuse payment of No-Fault insurance benefits.

5. Suing for money it had already paid out on claims by hiring a number of insurance defense lawyers to allege “fraud,” in what seems like nearly every single case that these particular attorneys/pit bulls are hired on.

In the following weeks, I’ll write a detailed explanation regarding each sin.

Steven Gursten is recognized as one of the nation’s top insurance lawyers handling serious auto accident cases. He writes about insurance company abuse and the Michigan No-Fault laws, and is available for comment.

– This blog was written by Steven Gursten and Todd Berg, esq.

Related information:

Allstate won’t be targeting Michigan doctors who help auto accident victims

Michigan No-Fault insurance resource center

Three potential cases after a Michigan auto accident

Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident and motorcycle accident cases throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights to better serve you. Call (248) 353-7575 for a free consultation with one of our insurance lawyers.

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