Everyone who buys insurance should visit the website Fight Bad-Faith Insurance Companies (FBIC), at BadFaithInsurance.org. FBIC lists insurers who chronically screw consumers by discounting, lowballing, fudging and delaying payment of legitimate claims. FBIC examines formal complaints lodged against insurers and reviews documents obtained through litigation against insurers to sort out good insurers from bad. FBIC finds that many well known insurers frequently act unethically and illegally. Consumers have virtually no recourse against these companies either, because government agencies that regulate the insurance industry are not only toothless and underfunded, but they are also often staffed by former insurance people.
Even worse, bad-faith insurers dominate the market. FBIC’s list of the top 50 bad-faith insurers contains many of the same insurers that advertise constantly on television. The worst company, State Farm (which FBIC rates “DO NOT BUY” in big, red letters), is followed closely by The Hartford and Allstate, which now owns E-surance. FBIC rates all three with a big, red “DO NOT BUY.” Liberty Mutual, Progressive, Geico, Mercury, UnitedHealth, WellPoint and Blue Cross Blue Shield are close behind. Fortunately, FBIC also lists the top 50 good-faith insurers — a shrinking list of companies that, for the most part, act ethically and responsibly toward customers and conduct business in accordance with the law. The list of good-faith insurers is topped by companies you’ve probably never heard of: Amica, Allianz and Chubb. Maybe these companies don’t carpet-bomb us with ads because their reputations are good enough to provide them with all the business they need.
After reading FBIC’s website, my husband and I switched our homeowner and vehicle insurance from Farmers to Chubb. We were surprised to find Chubb offered much higher quality insurance for about the same money. For example, in the event that you total your car, Chubb pays enough to go out buy a brand new car exactly like the one you had, instead of just giving you blue book for your wrecked one. Rental cars are covered in full under Chubb’s policy, and if you get personal liability coverage, Chubb provides $50,000 worth of identity theft coverage, including paying professionals to help you get your identity back and deal with problems caused by the theft.
Insurance is one area where you can vote with your money. Read Fight Bad Faith Insurance Companies’ reviews and move your business to an insurance company that treats consumers fairly, abides by the law and deals in good faith.