Allstate Insurance Claims

 Dealing With Allstate Not Paying Claims

car with Allstate bumper sticker

The American Association for Justice named Allstate the Worst Insurance Company in America.

We are often asked questions by prospective new clients like  “how do you deal with companies like Allstate not paying claims?” Unfortunately, even when you are hit from behind and it seems like Allstate’s driver is very obviously at fault, this does not mean that they will simply pay your claim as submitted. As many people find out the hard way, the settlement offer that insurance companies make for your personal injury case often seems like peanuts. Allstate’s approach to defending Allstate insurance claims is one of the reasons the American Association for Justice named Allstate Insurance the “Worst Insurance Company In America.”

Allstate Insurance Background

Allstate Insurance has been around since 1931. They are currently the second largest personal insurance company in the United States.   They boast over 16 million customers worldwide. They also own Esurance and Encompass Insurance Company. With that kind of size is it any wonder some claimants might feel overwhelmed or even bullied into accepting low ball settlements vs going to court?

How Long Does it Take Allstate to Pay a Claim?

This could take days, weeks, years, or even never. There are a number of factors that determine how long it takes for Allstate to pay a claim. The most common factors include:

  • the type of claim that is filed,
  • whether there are injuries involved or just property damage,
  • the degree of any injury,
  • the need for ongoing and/or future care,
  • the liability facts, and;
  • whether any insurance policy exclusions apply.

A straightforward property damage claim may be paid in a matter of days whereas a complex injury case with challenging liability and/or causation facts may take many years and even go to trial and appeal. If they deny your claim, you may have no choice but to sue Allstate and prove your case at trial.

You should consult a lawyer who sues Allstate regarding the specific facts of your case for a better understanding.

Is There an Allstate Pain and Suffering Calculator?

There is no such thing as an Allstate pain and suffering calculator.  Many years ago, compensation for pain and suffering was often calculated by applying some multiplier to the accepted bills. Thanks to tort reform, those days are long gone. Now, insurance companies like Allstate often “audit” the bills and decide to offer you far less than the face value of the bills in many cases.  Even though there is no Allstate pain and suffering calculator, Allstate does use a very complex computer system to reduce and devalue your medical care and other damages.

How Does Allstate Determine a Settlement Offer?

In many car accident claims, Allstate uses the Colossus computer system to adjust claims and calculate settlement offers.

Colossus Software

In the 1990s, Allstate began employing a piece of software to analyze claims known as Colossus.  As a result of years of litigation, much of how Colossus operates to ‘adjust your claim’ has become public knowledge.  Colossus is a massive claims database that contains data on hundreds of thousands of past automobile accident claims and their outcomes. Adjusters enter specific data and Colossus uses the data to create a value range for the claim.

Data Collection and Input by the Allstate Adjuster

The Allstate insurance adjuster beings by inputting requested information into Colossus. Injury codes are used to describe the exact injuries that were documented in the medical records and treated by the doctors. If the injury is not documented in the records, do not expect it to be considered. Additional data pertaining to medical care is requested including:

  • The first date of treatment
  • Type and duration of medical care received
  • Names of medical providers
  • Specialty of providers
  • Whether any impairment is noted and supported in the records
  • Whether an attorney is involved in the referral
  • Costs of medical care in the geographical area

In addition to the above, Colossus considers other factors in evaluating medical care such as whether an attorney was involved in the referral, whether there are medical liens, use of a seatbelt, and aggravating factors regarding the case.

Liability is Assumed by Colossus

Colossus does not take into account liability. That is, it does not analyze fault. Colossus determines the estimated value range of a case by assuming liability and assessing only the damages. The adjuster may then reduce that amount if he/she determines the Plaintiff to be partially at fault.

The Result

After all of the data is inputted, an adjuster can add a few extra value points based upon extenuating circumstances that Colossus does not automatically account for. However, the Allstate adjuster’s latitude appears to be limited.

Colossus takes all of the above data and compares it to the thousands of cases that have had similar facts and have gone to trial and/or come to pass in that area.  From this information, Colossus creates a settlement range.  While many other companies also use Colossus as a case evaluation tool to consider, it is generally understood that Allstate uses this as the primary tool to define the range within which they will settle a case.

Why Does Allstate Fight Low Impact Collisions?

Juries often have a hard time understanding how people are injured when the property damage is minimal. Thus, fighting these claims tends to be low-risk for insurance companies. Allstate has a reputation among personal injury attorneys as an insurance company that fights cases where the damage to the vehicle does not create the image of a severe impact.  They often classify these as Mist Claims (Minor Impact Soft Tissue). Once a claim is classified as a MIST claim, you can expect them to make a nuisance value offer and force you to file a lawsuit and take the case to trial to get a fair amount for your damages.

Soft tissue injuries such as whiplash are the most common injuries sustained after a car accident and the easiest for a defense lawyer to convince a jury into not believing the plaintiff. By fighting them aggressively, Allstate forces a car wreck lawyer to decide whether he is really willing to gamble his money on a case that has a higher chance of losing simply due to juror bias against personal injury claimants.

How Do I Make Allstate Insurance Pay a Settlement?

In order to get the best possible settlement, you should familiarize yourself with the various variables that Colossus considers. You should gather all of your medical records and bills and be sure that all of your injuries are documented in the information you present. You should also take care to follow all of your doctor’s orders, see any specialists they refer you to, and treat in a timely and reasonable manner. You should also get solid documentation of any lost time from work down to the hour and rate of pay.

Do not accept the first offer an adjuster makes on your claim. In our experience, they often make another move, and then a final offer after the initial offer.

How Do I Get an Allstate Adjuster to Increase a Settlement Offer?

To get more than their ‘top offer,’ you will likely need to get a re-evaluation of your claim. This is very difficult. While different levels of adjusters may have some small discretion to offer 500-1500 over and above their range to settle, you may have to convince the adjuster to re-run your case through Colossus to get a higher settlement evaluation. In our experience, they will rarely do this unless you can offer them additional evidence that they did not take into account the first time.

How Much Will Allstate Pay For Pain and Suffering?

Allstate uses Colossus to determine the value of your pain and suffering in the run-of-the-mill whiplash cases. The amount is based upon how other cases have fared at trial with similar injuries in the same jurisdiction. Thus, there is no exact prediction. However, because they tend to cut or “reduce” your medical bills for what they consider “reasonable and customary” charges, the offer they make you will often not feel like there is any consideration for your pain and suffering.

Should I Hire a Lawyer to Fight Allstate?

Only you can make this decision. An insurance adjuster’s job is to minimize the amount the insurance company pays out. If you do not provide the right documentation, your claim value will likely suffer. At Simmons and Fletcher, P.C., we handle car accidents against Allstate regularly. Our attorneys know what evidence can be important to a  Colossus evaluation. We can also work to negotiate down the cost of your medical bills and medical liens to make you a recovery. Allstate Insurance Co. has well-trained adjusters and lawyers on their side. Shouldn’t you have someone on your side?  Consultations are always free at Simmons and Fletcher, P.C.  Why not discuss your case with us today?  If you decide not to hire us, nothing was lost. If you decide to hire us, we front all of the legal expenses and we do not charge a fee or get reimbursed our expenses unless we make a recovery for you.