State Farm Ranked 4th Worst Insurer in America

State Farm boasts the top spot in property and casualty insurance, offering a one-stop shop for car, life, and home coverage. While it might pinch your wallet more than competitors, State Farm promises neighborly discounts to ease the sting.

Think of it like this: you buy a pre-written story from State Farm. You pick your chapter (policy), pay your dues (premium), and when disaster strikes (claim time!), State Farm steps in as the supposed hero, showering you with benefits (coverage). But here’s the plot twist: the insurance industry isn’t exactly known for happily-ever-afters.

Each state has a watchdog for a reason. And guess what? The American Association for Justice (AAJ) exposes State Farm as the Grinch who stole Christmas… for policyholders, that is. They rank State Farm as a villain, despite their “good neighbor” charade.

AAJ’s report, “The Ten Worst Insurance Companies in America – How They Raise Premiums, Deny Claims and Refuse Insurance to Those Who Need It Most,” is a scathing exposé. Their investigation unveils a troubling trend: Insurance giants prioritizing profits over people, employing tactics that shortchange customers and minimize payouts.

The evidence? A mountain of court files, financial records, and even whispers from ex-insurance adjusters paint a grim picture. State Farm’s not-so-secret weapon? The “deny-delay-defend” strategy, with a side helping of non-renewals for good measure.

State Farm’s Shady Tactics

The AAJ accuses State Farm of pulling these punches:

• Lowballing: Homeowners united against State Farm’s habit of undervaluing their property. A jury even called them out for recklessness and malice!
• Playing Keep Away: Like its competitors, State Farm loves to deny claims, delay payments, and drag out lawsuits—all to protect its precious bottom line. It’ll fight tooth and nail to avoid payouts, even resorting to forgery.
• Katrina Catastrophe: Remember Hurricane Katrina? State Farm’s response was a disaster. Home inspectors blew the whistle on how State Farm instructed them to cook the books, cheating policyholders out of rightful compensation.
• Profits Over People: State Farm’s commercials portray them as the ultimate good neighbor. But their actions speak louder. They fail to deliver on their promises, leaving Texans in Dallas, Fort Worth, and beyond high and dry.

And here are some signs that State Farm may be trying to make you another victim:

• Silent treatment (lack of communication)
• Endless waiting games (unreasonable delays)
• Skipping the investigation (failure to investigate claim)
• Playing with words (misinterpreting policy)
• Leaving out key details (omitting material facts)
• Penny-pinching payouts (underpaying claims)
• Unjustified denials of coverage
• Paper chase runaround (unjustified demands for documentation)

Don’t be fooled by their tactics. If you experience these red flags, fight for what you deserve.

Recent State Farm Customer Complaints on BBB

Here’s a glimpse into what some recent State Farm customers have reported on the Better Business Bureau website:

“I’ve had a claim going with state farm and the responses from them are nothing but dodge dodge dodge. The agent I have dealt with has not returned my calls appropriately and has asked for more documentation without being specific of what I would need to send. I sent a P and L in regards to my businesses loss of use and they want documentation but jeff the agent handling the claim would not be specific of what is needed. This is a disgusting way of deflecting and costing me time and more money in a way to try and make me settle for less or to just go away which is not going to happen. I will now have to obtain legal council and pursue this harder.”

Eric D., 3/23/2024

“State Farm has zero loyalty. Spouse and have had State Farm for a total of 46 years. They dropped our homeowners insurance due to three claims within two years. Car theft, water damage on ceiling and house fire. Total payout for all three claims approx 16,500. After dropping us and us getting a new insurance carrier after 46 years , they still went into our account and took a payment. Then proceeded to make us wait for 1.5 weeks to return our money. We were told 100 percent no payment would be coming out. Don’t use this company as they no longer are loyal to their customers.”

Sherri J., 3/22/2024

“Do not use state farm. They do not care about they vehicles they insure. They would rather neglect any safety issues that a body shop return your car with and tell you its not their problem. Worse insurance ever and they should be shut down!”

Andrew N., 3/21/2024

“My concrete foundation has shifted under my house. Normally foundation repair isn’t covered on a homeowners policy but I have an addendum to cover it. State Farm still won’t cover it. I’ve had insurance with them for 54 years, both home and auto and they refuse to pay. They said it’s natural erosion. There is a plumbing leak and the slab and the foundation has shifted almost 8 inches in six months towards that leak. They used to be good. Not anymore.”

Dona D., 3/21/2024

“State Farm is a very bad insurance to have for your home. They will avoid meeting deductibles so they wont send you any support financially. The adjuster sent by State Farm is bias. Dont spend your hard earned dollar on state farm instead look for another insurance for your home or save your moneyin case of an emergency.”

Joe G., 3/21/2024

“We are dealing with a vandalism claim as my husbands car was vandalized while he was working (3 slashed tires and 2 broken windows.) They denied one window because pics didn’t show the damage well and now we find out they are subtracting $60 for replacing the tires because they want us to get used tires. Our tires were brand new and put on in December! Who buys and trusts used tires? Plus it’s AWD and all tires need the same tread. They refuse to send anyone out to look at the damage because they only do it by photos We pay for them to cover us and they’re doing this to damage out of our control (vandalism.) It’s BS. I don’t trust them or like them and refuse to stay with them in case we ever have another claim (this is our first). I’m not doing all their work again to constantly be denied or short changed. We are swapping and I recommend not going with State Farm. They got 1 star because the review doesn’t allow me to give them no stars.”

Amy P., 3/20/2024

Out of over 1,600 customer reviews and as of March 25, 2024, State Farm holds a 1.18 out of 5 rating on the BBB website.

To summarize:

• Claim Delays and Lack of Communication: Multiple customers mentioned frustrations with slow claim processing, unclear requests for documentation, and difficulty reaching agents.
• Disloyalty and Policy Cancellations: Sherri J. expressed disappointment after being dropped as a customer despite having insurance with State Farm for over 46 years. They also faced issues retrieving a mistakenly deducted payment.
• Denial of Coverage: Dona D. reported a denied claim for foundation repair, despite having an add-on policy specifically for such situations. Joe G. also encountered issues with State Farm allegedly avoiding deductible payments and using biased adjusters.
• Unreasonable Claim Settlements: Amy P. described a situation where State Farm denied coverage for a vandalized window and attempted to deduct money for replacing brand new tires with used ones.

These reviews highlight concerns regarding communication, claim processing times, fairness of settlements, and treatment of long-term customers.

From Good Neighbor to Gatekeeper

State Farm, a household name founded in 1922, boasts a vast insurance empire. They offer a one-stop shop for financial needs, from car insurance (being the nation’s largest provider) to life insurance and investments. Many choose them for their brand recognition and wide range of products.

But what happens when the “good neighbor” act fades? Recent years have seen an unsettling rise in legitimate claims denied by State Farm. Don’t be discouraged! Legal options are still available.

There are two main claim types:

• First-Party Claim: This is when you file a claim against your own State Farm policy, like damage to your car.
• Third-Party Claim: This is when you file a claim against another driver’s insurance, even if it’s State Farm, for something they caused, like an accident.

Regardless of the claim type or even if you’re not a customer, State Farm has a legal obligation to be fair. This means handling your claim promptly and offering settlements in good faith.

Fighting Back Against Denials in Alabama With Help From Baxley Maniscalco

State Farm is legally required to process valid first-party claims without unfair denials. If you receive a denial letter, it should explain their reasoning.

Don’t wait: If you’re receiving unfair treatment from State Farm in Alabama, gather this letter and all related documents and get them to a qualified attorney ASAP. Our lawyers here at Baxley Maniscalco can assess your case, determine the best course of action, and help you fight for the compensation you deserve.