HOW TO HANDLE ALLSTATE AUTO ACCIDENT CLAIMS
Allstate Auto Accident Claims
This page will look at how to handle auto accident claims with Allstate. Allstate is one of the largest insurance companies in the world. They are the 5th largest auto insurance carrier in the U.S. and the 3rd largest auto insurer in Maryland. Allstate was originally founded by Sears Roebuck & Co. back in the early 1930s. Today Allstate is the second largest personal lines insurer in the country. The company is headquartered in Northbrook, Illinois but it has regional claims offices across the U.S.
Allstate is certainly one of the most well-known and respected insurance companies in the U.S. They also hold themselves out in a very positive light with their “in good hands” slogan. This good guy persona goes out the window when dealing with Allstate on accident claims.
Allstate Claims Process – What to Expect
Allstate can be very tiresome and difficult to deal with on auto accident claims in Maryland. One of the most frustrating things about the Allstate claims process is their over reliance on the well known insurance claims software called Colossus.
Colossus is a sophisticated software program that tracks certain information about a claim and uses an algorithm to calculate a settlement value. The system looks at things such as injury type, victim age and treatment records. Based on these data points the software gives the claims adjuster a value for the claim. This tends to make the Allstate claims process very robotic in many ways. Colossus takes out of the equation both the subjective qualities of the claimant and the fact that people respond differently to injuries.
Allstate Makes Reasonable 1st Offers
Compared to other insurers like GEICO or State Farm, Allstate typically makes higher initial settlement offers to 3rd party injury claimants. The graph on the right shows an analysis of Allstate’s 1st settlement offer in 10 randomly selected auto accident claims.
The graph compares the average amount of the medical bills involved in the claim (blue bar) vs. the amount of Allstate’s initial offer (orange bar). As the chart indicates, Allstate’s average initial offers were about 25% above the medical bills. This is admittedly a small sample size, but it suggests that Allstate’s initial settlement offer is usually 10-25% more than the medical expenses.
Allstate’s initial settlement offers are consistently higher and more reasonable when compared to other insurance companies. But if this initial settlement offer is rejected, Allstate claims adjusters will make a deliberate effort to stall, stonewall and frustrate in an attempted to bully you into accepting their offer.
AVERAGE ALLSTATE INITIAL OFFER vs. MEDICAL BILLS
Allstate’s Lawyers for Maryland Claims
Allstate has its own team of in-house attorneys that defend auto tort cases in Maryland. Allstate has 2 in house counsel offices. One is located in Baltimore and the other is in Greenbelt. The in house attorneys at Allstate may be company employees, but they have some autonomy and the authority to overrule the adjuster. For bigger cases, when there is a possibility that a judgment could exceed policy limits, Allstate will appoint outside counsel to defend their insured. Allstate uses a panel of several different small or mid-sized insurance defense firms, including:
Anderson, Coe & King, LLP (Baltimore)
Rollins, Smalkin, Richards & Mackie (Baltimore)
McCarthy Wilson (Rockville)
Scouting Report on Allstate Claims
Allstate’s claims adjusters tend to get a little abrasive and stern if you reject their initial settlement offer. Years ago they used to have an image of boxing gloves to visualize how adjusters were expected to handle claimants who balked at their settlement offers. This attitude still seems to exist in the Allstate claims division.
Allstate settles a higher percentage of Maryland accident claims than any of the other top 5 insurers. This is partly due to the fact Allstate makes better initial settlement offers. Even after the initial offer is rejected, however, Allstate is always looking to settle cases when it can. Allstate is much less willing to go through a full trial compared to other carriers. This is especially true in certain plaintiff-friendly jurisdictions in Maryland such as Baltimore City.
Allstate is not a “lowballer” when it comes to 1st settlement offers. Allstate consistently makes higher, more reasonable initial settlement offers compared to other insurers. In small or mid-sized claims, you can expect Allstate’s opening offer to be around 20% above the total medical bills.
Many insurance companies dig in their heels and get very combative and stubborn if you force them to litigate a claim. Allstate tends to be much more pragmatic and reasonable in litigation. In smaller cases their in-house attorneys will usually make at least 1 effort to settle for a number they can live with. If that fails they will take the case to trial, but they are always willing to listen and negotiate.
Allstate Settlements & Verdicts
YEAR / STATE
CASE / INJURY SUMMARY
2020 – Maryland
Left-turn, t-bone collision. Plaintiff suffers herniated disc injury which requires complex disc replacement surgery. Plaintiff had history of back issues prior to accident. Allstate’s initial offer is $35,000 and makes a 2nd offer of $85,000.
$130,000 – Settlement
2020 – Maryland
Head-on collision. Allstate admitted liability but disputed the severity of plaintiff’s injuries and suggested that they were related to pre-existing medical conditions.
$8,000 – Verdict
2020 – Illinois
14-year-old pedestrian was struck by Allstate insured driver and suffered several fractures to his legs and skull. He underwent surgery on his legs. Allstate settled for the driver’s $500,000 policy limit.
$500,000 – Settlement
2020 – Maryland
Unspecified injuries to driver and 2 minor passengers following intersection accident involving failure to stop. Allstate contested liability and took the case to trial.
$50,033 – Verdict
2019 – Maryland
Rear-end accident. Plaintiff claims only soft-tissue injuries and treatment is limited to 6 doctor visits, but case in in P.G. County. Allstate’s initial offer is $17,000. Before trial the offer doubles and eventual gets up to $175,000.
$200,000 – Settlement
2019 – Maryland
Pedestrian suffered somatic dysfunction of his neck, back, and pelvis after an Allstate-insured vehicle struck him as he crossed an intersection. Causation was disputed.
$50,000 – Verdict
2019 – Maryland
Rear-end accident. Plaintiff suffers bulging disc injuries and head contusions. Allstate refuses to settle his UIM claim and takes case to trial in Baltimore County.
$104,000 – Verdict