Klein Frank, P.C. Klein Frank, P.C.

That's Allstate's Scam

In its advertising, Allstate constantly points the finger of blame at people who are injured in accidents and has created a mass marketing campaign to create the impression that people who are injured by their policyholders are frauds and scam artists. If you are in a car accident, you will likely see paperwork from insurance companies that warns you that if you commit any fraud, they will prosecute you. Allstate, however, doesn't want to abide by the same standards. Allstate has been caught ripping off injured people in Washington and has been forced to compensate the people it hurt through a class action.

Allstate's Scam

Allstate did not want to cover the full cost of medical bills, so the company used a billing software program that arbitrarily determined the average pay rate for a procedure in the geographical area and then paid out only 85 percent of the rate, according to an attorney for plaintiffs. Furthermore, it used these reduction policies on their own policyholders who had paid Allstate for personal injury protection (PIP) car insurance. Allstate paid only percentage of the bills and left its policyholders to make up the difference on their own. The amount may have been small each time, but it added up to hundreds of dollars that the insured had to pay out of their own pockets to cover the gap.

"They should be forced to disclose that. It's not fair," plaintiff's counsel stated.

Judge Downing will be overseeing the approval of the settlement, and having had the honor of working in his Courtroom, I have no doubt that Judge Downing will do an excellent job making sure that Allstate "pays up" instead of "stands on" it's own policyholders who are involved in car accidents.

Without plaintiff's lawyers, the courts, and citizens to serve on juries, Allstate would be wrongfully pocketing money that it owes to its policyholders.

If you suspect that your insurance company is acting in bad faith, you should consult with a Boulder trial attorney at Klein Frank, P.C. Free case evaluations are available when you call (303) 448-8884.

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