Insurance Company Problems

Allstate’s advertising slogan is “You’re in good hands with Allstate.” However, in 1999 the company was exposed for attempting to convince injured people to take less than full recovery for their claims – and those same insurance practices continue to this day, says Lexington car accident lawyer Frank Jenkins.

More than 10 years ago, several states took action against Allstate for allegedly deceptive insurance practices, and two class action lawsuits were filed by consumers. Despite those legal cases, Allstate is still engaging in similar practices, says Jenkins, who handles Kentucky personal injury lawsuits.

“Nearly a decade after their unfair insurance practices were exposed, Allstate still follows some of the same procedures,” says Frank Jenkins, Lexington personal injury lawyer.

Allstate’s procedures are aimed at holding down the company’s costs in claims payouts. Jenkins explains that “Allstate seeks out injured claimants who have not hired an attorney, and tries to settle claims with them directly in order to produce a lower settlement.”

In 1999, the procedure was performed in a number of steps, including:

• Making the injured person believe they were dealing with an advocate, not an adversary;
• Sending letters to anyone not represented by counsel;
• Sending a brochure titled “Do I Need an Attorney?” to claimants who had not retained counsel;
• Rewarding claims representatives based on the percentage of unrepresented claims they processed.

Two primary concerns were raised about Allstate’s policy, Jenkins notes. First, Allstate failed to disclose the true nature of the relationship between itself and the driver. Allstate referred to the injured driver as its “client.” The driver was actually Allstate’s adversary in the claim; the party who had injured the driver was Allstate’s client.

Second, Allstate was talking to injured motorists about whether an attorney was needed for their claim. They were also advising accident victims about the statute of limitations for their claims. Jenkins explains that “giving that type of advice is usually considered an unauthorized practice of law.”

After over a decade, Allstate still follows many practices aimed at tricking unrepresented claimants into a settlement.

If you have been injured by a driver who is insured by Allstate, you may need the advice of an attorney. If you have legal questions, contact the Frank Jenkins Law Office today. It’s our job to fight for your rights so that you can concentrate on your health and family, while we deal with the insurers and those responsible for your injuries. Call us today at 859-389-9344 or contact us via email.