One of the largest insurance carriers in the nation, and one of the most popular is Allstate Insurance. With its ubiquitous TV advertisements, catchy taglines, and large underwriting practice, it is also one of the most popular insurance carriers in Michigan.
Based in Northbrook Illinois, Allstate Insurance is a multi-line insurance carrier with offices and agents in all 50 states. Allstate Insurance is a publicly traded company with a market capitalization of over $30 billion. Founded in the 1920s in Illinois, for decades it was part of the Sears Roebuck Company, with sales agents selling insurance products directly out of Sears stores across the United States. By the 1980s, Allstate began to open individual agent offices. Allstate became public through a stock offering in 1993, and Sears spun the rest of the company off a few years later.
Although Sears has since filed for bankruptcy and closed almost all of its stores, the former subsidiary that sold basic auto insurance has blossomed into one of the largest insurance companies in the United States. With revenue over $44 billion and profits of close to $4.9 billion in 2019, the company has 146 million in total policies in force. Personal property-liability policies reached 34 million in 2019.
Allstate Insurance sells insurance through a varied distribution channel. There are approximately 10,800 Allstate captive agencies in the United States, supported by over 27,000 sales professionals. Esurance is owned by Allstate Insurance, but sold to customers online. Encompass is another Allstate Insurance owned subsidiary, distributed through 2,800 independent agencies. Allstate operates in all 50 states.
Allstate is the fourth largest automobile insurance carrier in the United States, behind State Farm, Geico Insurance and Progressive Insurance. Allstate has a market share of 9.2%. These four carriers alone make up more than half of the total car insurance market.
Allstate Insurance and Defending Car Accident Claims In Michigan:
In Michigan, Allstate Insurance utilizes a group of in-house lawyers to defend claims. Allstate Insurance will hire outside counsel to defend claims, but for the most part it relies upon its group of “in-house” counsel to defend most automobile accident cases in courts through the state. The lawyers that defend policyholders and claimants eligible for no-fault benefits are employees of the company. In metro Detroit, they work with Allstate adjusters and claims representatives inside the same building in Farmington Hills, Michigan.
Allstate Insurance and Michigan No-Fault PIP Benefits:
Under the Michigan no-fault law, Allstate Insurance policyholders and family members are entitled to obtain no-fault benefits from Allstate if they are injured in a car accident. These benefits are called PIP, or personal injury protection benefits and include the payment of medical expenses (such as hospital bills and doctors’ bills), lost wages, payment for prescription drugs and other benefits.
Allstate Insurance is responsible for paying the amount of PIP coverage found in the individual policy. Most Allstate Insurance policies contain at least $250,000 in PIP coverage.
However, Allstate Insurance is in the business of making of money, so its main goal is to collect as much insurance premium as possible while paying out as little in possible in claims. As a result, Allstate is one of the most aggressive auto insurers in Michigan in battling claimants who seek Michigan no-fault benefits.
Allstate Insurance and Independent Medical Exams (IMEs):
Allstate Insurance defends claims in a number of ways. One of its most popular ways is to send claimants or injured persons to a hand-picked “independent medical examination” performed by a doctor of the auto insurance company’s choosing. Allstate Insurance will pay the doctor to perform the exam and to author a report.
Usually the practitioner is in a specific specialty, such as orthopedics, chiropractic or pain management, and will perform a quick examination of the injured person based. The report is then used by the Allstate adjuster to decide whether to pay benefits in the future or to terminate benefits. In almost every situation, the IME report will be used by the adjuster to terminate the payment of benefits, either immediately or after a short time in the future.
Allstate will often employ the use of multiple IMEs to delay, deny and then defend the payment of Michigan no-fault claims. I have had cases against Allstate where they hire up to four different IME doctors from different specialties to say either my client (1) was not injured in the accident, (2) the medical treatment he or she received was not appropriate or (3) was at maximum medical improvement and therefore no additional treatment was required.
Lee Steinberg, P.C. – Allstate Insurance Case Review:
Recently, personal injury attorney Franci Silver represented a client who was seriously injured by a drunk driver in Detroit. Our client turned to his auto insurance carrier, Allstate Insurance, for the payment of medical bills and lost wages.
Our client’s life was turned upside down by the car crash. He incurred thousands in medical bills. He needed the care of his girlfriend to help dress him, do the laundry, clean the home and cook for him. Although Michigan law allowed him to seek payment of these benefits, Allstate refused to pay all but the bare minimum.
Instead, Allstate sent our client to multiple exams, all performed by a physician with a different medical specialty, to “evaluate” his injuries. These exams and the reports prepared by the physicians were all paid by Allstate directly. They then used the doctors’ opinions to stop paying all no-fault benefits.
Ms. Silver sued Allstate Insurance in Wayne County for the recovery of his outstanding PIP benefits. She was successful in getting all of his medical bills paid, reimbursing his girlfriend for the work she put in to care for him as well as other benefits.
If you have any questions about Allstate insurance or need help defending claims against any insurance company, please call the Michigan personal injury lawyers at the Lee Steinberg Law Firm, P.C. at 1-800-LEE-FREE (1-800-533-7333).
The phone call is free and we never charge a penny until we win your case. Our team of experienced Michigan personal injury attorneys can answer your questions and provide much needed guidance during a scary and daunting time.