Sean O’Rourke | July 12, 2025 | Personal Injury
When you have been injured in an accident, you expect the insurance companies to handle your claim fairly. Unfortunately, Allstate has developed a reputation among personal injury lawyers as one of the worst insurance companies for consumers.
Here is why Allstate frequently ranks among the most problematic insurers for personal injury claimants and how their tactics may hurt you after an accident.
Allstate in Personal Injury Cases
Allstate handles thousands of personal injury claims annually. This includes cases involving car accidents, slip and fall accidents, motorcycle or truck accidents, and other incidents. It is not uncommon to find them on the other end of the phone if you are filing a claim.
However, Allstate is well-known for taking an aggressive and adversarial approach to personal injury cases. Their adjusters are trained to scrutinize claims, downplay injuries, or delay resolution to minimize payouts. Many victims themselves are caught in long, frustrating battles to receive the compensation they are legally entitled to.
Why Allstate Is Considered One of the Worst for Consumers
Allstate has been found to have a longstanding pattern of denying, delaying, and defending against legitimate claims. These tactics push personal injury victims to settle for less or give up altogether.
Here are some of the most harmful strategies Allstate is known for:
1. Delaying Claims to Pressure Victims
Allstate frequently uses delay tactics to reduce the amount it ultimately has to pay.
It is not uncommon for:
- Adjusters to take weeks or months to respond to submitted documents.
- Claimants to be told their paperwork is “under review” with no follow-up.
- Adjusters to pressure victims to accept a lowball offer and settle too quickly.
Delays can also push victims past the statute of limitations, barring them from filing a lawsuit.
2. Denying Claims Without Proper Justification
Allstate has a reputation for denying legitimate claims on technicalities or ambiguous reasoning. This can include:
- Disputing liability even when their insured is clearly at fault.
- Arguing injuries are pre-existing or not caused by the accident.
- Denying that certain medical treatments are “reasonable and necessary,” even if prescribed by a doctor.
These denials are often made in bad faith, forcing personal injury victims to gather extensive documentation or hire a lawyer to keep their case alive.
3. Prioritizing Profit Over Policyholders
Allstate is a publicly traded company focused on generating a profit for its shareholders. This is reflected in the company’s internal claim-handling strategy. Adjusters have been advised to make low settlement offers and aggressively fight claims.
This tactic has been part of Allstate’s broader effort to boost profitability and reduce claims costs, even at the expense of accident victims.
4. Engaging in Bad Faith Practices
Bad faith occurs when an insurer intentionally refuses to fulfill its legal obligations under a policy.
Allstate has faced numerous lawsuits and regulatory fines for:
- Misrepresenting policy terms to policyholders.
- Failing to conduct reasonable investigations.
- Refusing to pay claims without an adequate explanation.
Courts have penalized Allstate in some cases with punitive damages for egregious misconduct that deviates from acting in good faith.
5. Lowball Settlement Offers
Allstate may agree to pay a claim, but its first offer is often insultingly low. These offers may not even cover basic medical expenses, let alone lost income or pain and suffering.
Common tactics include:
- Using software algorithms to undervalue claims.
- Offering settlements before the full extent of injuries is known.
- Pressuring victims to sign releases early without consulting a lawyer.
Victims who accept these offers without legal advice may find themselves unable to recover further compensation once the actual cost of an accident becomes clear.
What You Can Do if Allstate Is Handling Your Claim
It is crucial to proceed with caution if you have been injured and Allstate is involved.
A Houston car accident lawyer can help. Here are a few steps to protect yourself:
- Do not accept the first settlement offer: An initial settlement offer is likely far below what your claim is truly worth.
- Keep detailed records: Maintain copies of all communications, bills, medical reports, and other evidence related to your case.
- Consult a personal injury lawyer: An experienced lawyer can help level the playing field, negotiate a fair settlement, and, if necessary, take your case to court.
- Watch for signs of bad faith: A lawyer may be able to pursue additional compensation through a bad faith lawsuit if Allstate refuses to pay a valid claim or acts unreasonably.
Allstate may be a household name, but its claims handling practices have earned it one of the worst reputations in the insurance industry. Whether you are filing a claim under your policy or against an Allstate-insured, be aware that you may be met with tactics designed to pay less than you deserve.
Contact the Personal Injury Lawyers at Simon & O’Rourke Car Accident & Personal Injury Lawyers for Help
You do not have to fight Allstate alone. A Houston personal injury lawyer can help you assert your rights, present evidence, and hold Allstate accountable. If you or a loved one has been injured, call Simon & O’Rourke Car Accident & Personal Injury Lawyers to schedule a free consultation today.
For more information, please get in touch with the Houston personal injury attorneys at Simon & O’Rourke Car Accident & Personal Injury Lawyers at our nearest location to schedule a free consultation today.
Simon & O’Rourke Car Accident & Personal Injury Lawyers
440 Louisiana St Suite 1115, Houston, TX 77002
(281) 667-4081
About The Author
Sean O’Rourke earned his law degree from Southern Methodist University School of Law and is licensed to practice in Texas. He frequently assists clients with their legal needs in Houston, with a focus on personal injury cases, especially those involving motor vehicle accidents (such as cars, commercial trucks, 18-wheelers, & motorcycles). Click here to view some of the amazing case results that Sean has successfully handled.
Location: Houston, TX