Monday, February 12, 2007

Allstate v. Katrina victims

Allstate has always prided itself on screwing people out of a full settlement. As one of the largest providers of what is called personal lines insurance, they never paid the full cost of a claim unless they were sued.

If their insured rearended your car, they would only pay 90%. Why? They argued that there was an assumption of risk simply being on the road. Instead of going to arbitration over the 10% the claim would settle so that additional costs would not be incurred. Can you image how much money they saved by doing using this technique? It's not illegal. It's just not right.

This is not new. I have been in the insurance business over 20 years and this practice dates back to the early 80's.

No one wonder our industry is viewed as a lower life form than a used car salesman.

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