Malicious Insurance Companies

Progressive Hit With $61 Million Verdict

       Progressive Insurance Company found guilty of violating the US Civil Rights Act of 1964...(More)

Allstate & State Farm Employ "Deny, Delay & Defend"

       Insurance companies rake-in billions in profits by continuing to charge high premiums while denying claims...(More)

Insurance Companies Pile up 44.8 Billion in Profits in 2006

       Record profits made while denying legitimate Katrina claims...(More)

"Quick" and "Fair" are NOT the Same Thing!

       Progressive advertises about how quickly it responds to accident victims, but just remember, "quick" and "fair" are not the same thing.  Progressive responds quickly, because it's in its own best interest to do so.  Progressive has even been known to arrive on the scene of accidents before legitimate emergency personnel.  While this gives the appearance that Progressive is trying hard to help you, the real truth is that Progressive is trying hard to pay you as little as possible.  Progressive knows that it can settle more cheaply, if it settles more quickly.  Progressive attempts to settle claims before a person can talk to a lawyer about his/her rights and before some people even realize that they are hurt.  Many neck and back injuries take a couple of days or longer to start manifesting symptoms, but if the case has already settled, it's over, no matter how much your medical bills are!

Don't Be Taken by the Cute Gecko

       GEICO's talking gecko wants you to save on insurance, but be sure you know what you are getting.  Both GEICO and Progressive use CCC data to value your car, instead of N.A.D.A. or Kelly Blue Book.  If you are in an accident which "totals" your vehicle and you make a claim under your own policy with either of these companies, their offer to you for property damage will be substantially less than book value.  Even in the face of a class action suit against CCC and Nationwide Insurance for Nationwide's similar use of the CCC data, GEICO and Progressive stubbornly persist in making offers based on the CCC data.  They may save you money on premiums; just hope you never have to use them.

Consumer Reports Says Progressive.com is "Disappointing"

       Consumer Reports compared several websites which claim to give you quick quotes on car insurance.  Of the top six sites, Insweb.com proved to be the most useful.  The other popular websites, Progressive.com,  Insurance.com, Insure.com, Esurance.com and NetQuote.com, "proved disappointing, with slower service, more intrusive questions and limited or no instant quotes".

Allstate's Example of "Frivolous"

       Allstate Insurance Company filed a lawsuit in 2002 in Fulton County State Court (Atlanta, GA) against the Kellogg's cereal company, making the ridiculous argument that Pop-Tarts are dangerous because they are flammable when burned.  Allstate insured a homeowner whose home caught fire from an unattended toaster.  Allstate paid approximately $10,000 to the homeowner for the fire claim.  Then, Allstate frivolously sued Kellogg's, attempting to make Kellogg's reimburse Allstate, on the grounds that Pop-Tarts should not catch on fire when burned.

Diminished Value

       State Farm v. Mabry:  The Georgia Supreme Court ruled that State Farm Mutual Auto Insurance Company had been violating the terms of its policies by refusing to pay diminished value to policyholders after a vehicle had been repaired.  State Farm subsequently agreed to settle the class action suit for $250 million dollars, without admitting any wrongdoing, (of course!).  Final court approval was given on March 6, 2002.  This affects claims from December 22, 1993 through November 30, 2001, but only claims made by policyholders...not third-party claimants. 

Subsequent similar suits have been tentatively settled:

• Earl v. Allstate Insurance Company ($59 million)

• McLean v. Progressive Insurance Company ($20 million)

• Brooks v. Grange Mutual Insurance Company

• Hamlet v. Georgia Farm Bureau (Court approved October 2002)

Aftermarket Parts

       Avery v. State Farm:  An Illinois jury awarded class-action claimants $456 million against State Farm Mutual Auto Insurance Company for forcing policyholders to accept aftermarket parts instead of original equipment parts.

Low-Ball Valuations

       Whitworth v. Nationwide & CCC:  When a policyholder's vehicle has been "totaled" or declared a "total loss" by the insurance company, Nationwide, like Progressive, GEICO and other companies, uses "CCC Information Services"  to obtain the value of a vehicle, rather than using a mainstream company such as N.A.D.A. or "Kelly Blue Book".  A class action suit was filed against Nationwide in Franklin County Ohio (Case #00CVH-08-6980) claiming that Nationwide's valuations based on CCC did not represent fair retail value for the purchase of a comparable replacement vehicle.  Nationwide denied any wrong doing, but still set aside millions to settle the suit.