Autor: Shelby Benavidez 

Contributing Paralegal: Heather Tenalio, paralegal 

“Allstate: You’re in good hands,” is one of the most recognizable insurance slogans in the world, promising security, compassion, and fairness when life takes an unexpected turn. But ask many attorneys, paralegals, and claimants who’ve dealt with them, and you’ll hear a far different story — one filled with delays, reversals, lowball offers, and outright denials that leave people feeling like they’ve been dropped the moment they needed help most.  

Allstate is a major auto and property insurance company, earning billions each year and running strong ads to gain customer trust. Yet, behind the marketing is a reputation for putting profits over people. 

Allstate’s Reputation for Bad Faith Insurance Practices  

Heather Tenalio, a Daniel Stark paralegal who has worked on numerous Allstate cases, said, “Allstate is HORRIBLE! Not only are they currently in the news for telling their employees to lie and alter records in an effort to unfairly deny claims (a $25 million settlement was reached in February of this year), they are regularly just over the top when it comes to insurance companies who go out of their way screw over everyone, including their own insured!” 

That $25 million settlement was tied to accusations that Allstate engaged in systematic practices to misrepresent facts and deny valid claims. While they claim they haven’t done anything wrong, attorneys and consumer advocates say the story tracks perfectly with what they’ve seen for years. 

How Allstate Reversed a Total Loss Decision 

One of Tenalio’s cases highlights just how shameless Allstate can be in reversing course when a claim threatens their bottom line. 

Her client paid a high premium for a full replacement policy, which is coverage that’s supposed to pay for a brand-new vehicle if her current one was totaled, rather than simply paying the “actual cash value” after depreciation. This is the Cadillac of coverage, and her client had been paying top dollar for it.  

After an accident, Allstate’s own total loss department allegedly confirmed in writing that the client’s vehicle was totaled. The body shop said the same thing — the frame was bent beyond repair, and it was unsafe to drive. Allstate’s written email stated it clearly: total loss.  

Then, Allstate realized what the claim would cost them.  

“Even though they told her it was totaled in writing and the body shop also said it was totaled, Allstate reversed their decision and literally told our client she had to have it repaired because otherwise it would cost them too much money. They refused to provide her the full value despite the email from Allstate as proof it was deemed a total. They told her they ‘sent that email in error.’”  

For months, the client fought with Allstate, ultimately getting nowhere. The only resolution came when the third-party insurer, the insurance company covering the other driver, agreed the car was totaled and paid out. Allstate washed its hands of the obligation.  

Lowball Offers on Medical and Injury Claims  

Allstate’s approach to property damage can be frustrating, but its treatment of injury claims is often even worse. Heather recalled another case from years back that still shocks her. She said, “Allstate offered $2,000 on a case where the client had a $28,000 outstanding lien for her initial ER.”  

That’s not $28,000 in total medical bills — that’s just the emergency room charges. Offering a claimant less than one-tenth of their medical expenses isn’t just a lowball; it’s a slap in the face.  

This kind of tactic forces injured people into impossible situations to either accept a fraction of what’s needed to cover medical care or take on a drawn-out legal battle with no guarantee of quick resolution.  

Systematic Issues in Allstate’s Corporate Culture 

The issues with Allstate aren’t just about individual bad adjusters or isolated mistakes. Industry insiders and legal professionals suggest there’s a deeper, systemic culture problem where protecting the company’s bottom line takes priority over policyholders’ rights.  

The February settlement is a case in point. Allstate faced allegations that it instructed employees to alter records to justify denying claims. Even though the company avoided admitting wrongdoing, the size of the settlement speaks volumes.  

Common Allstate Claim Denial Tactics Explained 

Based on attorney experiences, consumer complaints, and documented legal disputes, here are some of the most common tactics attributed to Allstate:  

1. Reversing Decisions When Costs Are Higher Than Expected 

As in the first client’s case, Allstate may confirm a total loss or approve a payout, then reverse the decision when they realize the cost of honoring the policy is higher than anticipated.  

2. Using “Errors” to Undo Commitments  

When caught in writing, Allstate may claim that statements, emails, or decisions were “sent in error,” effectively erasing their own documented admissions.  

3. Lowballing Medical Claims  

Offering settlements far below the actual cost of medical care is a frequent complaint, leaving injured people unable to pay bills without taking legal action.  

4. Delay Until Desperation  

Dragging out claim processing for months can pressure claimants into accepting less just to move on. This tactic is particularly harmful to those who’ve lost income or have urgent expenses.  

5. Aggressive Litigation Tactics  

When you don’t have an attorney, Allstate may dangle the threat of a long, expensive court battle over your head — not to win on the facts, but to make you settle cheap or give up. 

Real-World Impact of Allstate’s Claim Practices 

When an insurer denies or delays a claim, it’s not just numbers on a spreadsheet — it’s someone’s transportation, health, and financial security at stake.  

For the client, the full replacement policy fiasco meant months without a safe vehicle, paying for a premium policy that didn’t deliver on its promise.  

For the client with the $28,000 ER lien, Allstate’s $2,000 offer was essentially a refusal to engage in good faith, forcing an already injured person into more stress and legal entanglement.  

Multiply these stories by thousands, and you begin to see the human toll of corporate policies designed to minimize payouts. 

If you find yourself facing an unreasonable denial or lowball offer from Allstate, you’re not powerless. Attorneys stress the importance of getting everything in writing — every email, letter, and even text message can become critical evidence if Allstate later tries to reverse or deny a commitment. Equally important is thorough documentation of all damages and injuries, including medical bills, repair estimates, photographs, and records of communication with the insurer. 

Another key step is consulting with an experienced and qualified attorney early in the process. Allstate’s negotiation style is known to be aggressive, and having legal representation from the beginning can help prevent mistakes and strengthen your position. If you believe Allstate is acting in bad faith, you should also consider filing a complaint with your state’s Department of Insurance, which may investigate and hold the company accountable. 

Finally, never settle under pressure. Delays are a common tactic used to make claimants desperate enough to accept less than they deserve. Standing firm and letting your attorney advocate for you can make a significant difference in the outcome.  

Allstate’s slogan promises you’re “in good hands,” but the experiences of attorneys, paralegals, and countless claimants claim those hands may just as easily let go when the cost of keeping you secure becomes inconvenient.  

If you’re insured by Allstate or dealing with them as a third-party claimant, go in with eyes open, documentation ready, and a lawyer by your side. They have a team of lawyers ready to fight against you, don’t go in alone.