A Lawyer’s Take on The Worst Car Insurance Companies in the U.S. (According to Complaints Filed) 

Author: Shelby Benavidez 

Contributing Attorney: Michael Loh, Partner 

When it comes to car insurance, the promise is simple: pay your premium and get financial protection when accidents happen. But in practice, many insurance companies fall far short of that promise. From undervaluing claims to denying them outright, certain insurers make it especially difficult for policyholders to get what they are owed. Backed by legal insight from Attorney and Partner Michael Loh of Daniel Stark Law Firm, this article explores the worst offenders in the industry. 

“I hate almost all insurance companies,” says Loh. That sentiment is echoed by many personal injury attorneys who deal with insurance carriers daily. Loh identifies Allstate and Liberty Mutual as the worst of the worst, but they’re not alone. Here’s a closer look at the most problematic car insurance companies in America. 

1. Allstate 

Allstate has long been criticized for its aggressive “deny, delay, defend” tactics. According to Loh, Allstate frequently disputes medical expenses by claiming they are unreasonably high – not based on medical expertise, but on their own internal calculators. “They plug it into the calculator and decide what they think your bills should be,” Loh explains. This is unethical and often borders on bad faith, especially when these tactics delay care or lead to financial hardship for injured parties.  

The company also ranks among the lowest for claim satisfaction in multiple consumer reports. Verdicts against Allstate in bad-faith lawsuits are not uncommon, and they consistently top lists of insurers with the lowest payouts. So yes, if you’re wondering, with Allstate, you’re definitely not in good hands. 

2. Liberty Mutual 

Liberty Mutual is another major insurer known for minimizing payouts. Like Allstate, they apply “reasonable adjustment” tactics to diminish claims. “They think they should make reasonable adjustments to customers’ bills,” Loh says. “They believe they are too high.” Liberty Mutual has faced regulatory scrutiny in several states for misleading advertising and poor claims handling and has seen multiple lawsuits alleging bad-faith conduct. 

3. The Fly-By-Night Budget Insurers: Fred Loya, BlueFire, and Mendota 

Fred Loya, BlueFire, and Mendota all fall into the category Loh dubs “fly-by-night” insurers. These budget companies typically suffer from understaffed claims departments, frequent policy lapses, and an overall lack of responsiveness. Loh notes that many of these policies terminate automatically after 30 days, often leaving drivers uninsured without realizing it. Getting anyone on the phone is a challenge, and claims can go unanswered for months.  

These companies target low-income drivers with cheap premiums but offer little in the way of real coverage or service. Lawsuits involving misrepresented coverage terms, abrupt cancellations, and denial of valid claims are common. In legal terms, many of their actions amount to breach of contract, or worse, bad faith. 

4. GEICO 

Though GEICO is one of the largest insurers in the U.S., it’s also one of the most frequently sued. Several courts have awarded multi-million-dollar bad faith verdicts against GEICO for failure to settle claims reasonably.  

The company is also known for aggressively using software to dispute medical billing and vehicle valuations, often resulting in lower payouts. While not the worst, GEICO’s track record raises serious red flags for consumers. 

5. Nationwide 

Nationwide has earned a reputation for slow claims processing, poor communication, and low payouts. In 2014, it faced an $18 million punitive damages award for failing to settle a claim in good faith. Customers frequently report difficulty getting adjusters on the phone and dealing with unfair assessments of damage. Like many others on this list, they employ cost-cutting software tools that often come at the claimant’s expense. 

6. United States Government / USPS 

Claims involving federal or state government entities come with their own set of legal complications. “They don’t respond to you outside of litigation,” says Loh. “To get any movement, you have to enter litigation.” The USPS is one of the most commonly involved government agencies in auto claims.  

According to Loh, claims against USPS can remain unanswered for six to twelve months. Due to sovereign immunity, you can’t simply sue a government agency like you would a private insurer. The administrative hoops are extensive, and valid claims are often ignored unless a lawsuit is filed. 

7. Progressive 

Progressive has been accused in several class-action suits of using third-party tools to systematically undervalue totaled vehicles. Flo, we’re talking to you. In one high-profile case, plaintiffs claimed Progressive applied “Projected Sold Adjustments” to justify underpayment.  

The company has also faced criticism for privacy violations and the use of under-qualified repair shops. While it ranks higher in customer satisfaction than others on this list, its legal exposure remains significant. 

Most Shocking Moment According to Loh 

Of all the problematic stories Loh has encountered, one stands out. He recalls a female adjuster who dismissed a female client’s MRI-confirmed back injury by saying: “But your client’s a woman. Women always have lower back pain. Did she ever have a child? Because once you’re pregnant, you’ll have lower back pain.”  

It’s shocking not just for the dismissal of real pain, but for the gender bias coming from another woman. Loh doesn’t recall the company that adjuster worked for, but honestly, it could’ve been any of the names above. The problem isn’t isolated; it’s cultural. 

A Note on Better Insurers 

Not all insurance companies operate in bad faith. According to Loh, USAA and Texas Farm Bureau stand out for their relative fairness and customer service. USAA treats people fairly and offers great customer service, especially for military members and their families.  

Loh says that Texas Farm Bureau, while not perfect, generally treats customers with more integrity and respect than many competitors. Your choice in insurer matters, and if you qualify for USAA, it’s one of the best options available. 

Final Advice from Daniel Stark Law Firm 

Loh emphasizes the importance of early legal consultation: “Immediately contact an attorney after a car crash.” His team prioritizes helping clients secure medical care and documenting their injuries.  

Key advice includes: get the other driver’s license and plate number, take photos of all vehicles and the scene, collect witness and officer contact info, seek medical attention immediately, and request your insurance policy documents. And above all, “Demand Daniel Stark” if the insurance company starts jerking you around. 

The fact of the matter is that car insurance companies simply don’t play fair. With a combination of personal injury law experience and documented cases, this article has identified the worst offenders. When in doubt, know your rights, get legal help, and don’t settle for less than you deserve.