Allstate Policyholder Awarded $8.2M in Bad Faith Insurance Lawsuit

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jul 16, 2021

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A Florida Allstate policyholder didn’t feel as though he was “in good hands” and sued the insurer for bad faith insurance practices after it refused to pay his claim. The result was an $8.2 million jury verdict against the insurer – with another $100,000 at stake.

An accident that could happen to anyone

The accident that happened to Florida resident John Clements could have happened to anyone. According to news reports, Clements was simply clearing leaves from his front lawn when a truck jumped the curb and hit him. He sustained a broken neck, brain hemorrhages and herniated disks and was hospitalized for nearly a week. While a horrible experience in and of itself, what happened next was even worse.

Clements received some money from the driver’s insurance company and then submitted a claim to his insurance company – Allstate. Allstate was required under law to pay him $100,000 in underinsured motorist coverage; however, it ignored his claim altogether. Likely feeling as though he was not “in good hands,” Clements sued Allstate for acting in bad faith and was awarded $8.2 million in damages. The $100,000 claim amount from Allstate is still being contested. Unfortunately, Clements doesn’t seem to be the only one complaining.

Customer survey: 50% of Allstate customers very unsatisfied

According to a customer survey, 50% of Allstate customers were very unsatisfied with the insurer and made the following comments about recent service*:

  • November 23, 2008: Let me just tell you…you’re not in good hands with Allstate. The moment you have a claim, they don’t want to have anything to do with you. I had my car stolen and had to file a claim. Not only did they rip me off from not fixing anything at the car place where they had my car towed and fixed, the shop didn’t fix it! It was like a huge scam from both sides. When I complained, they said I had 150 Agents mad at me and that I better watch it! Was that a threat???
  • November 22, 2008: After a minor fender bender (under $1000), I got an increase of almost 600% in premium from about $100 a month to $600 a month. In other words, I’m now to pay for all damages and thousands of dollars in extra profits for Allstate. It’s like I was never insured.
  • November 18, 2008: [I] just had a fire in my home and I’m still trying to get the cleanup team and claims adjuster to come!

Has Allstate acted in bad faith regarding your claim?

If Allstate or any insurer acted in bad faith regarding your valid claim, contact an experienced bad faith insurance attorney to discuss your situation and evaluate your options. As always, consultations are free of charge, without obligation and are strictly confidential.

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