Are You Truly in Good Hands with Allstate? Consider This Advice When Dealing With Them… or Any Insurance Company

Allstate is no doubt proud of its long-running “Mayhem” TV ad campaign. In a series of memorable commercials, a lovable-but-crazed maniac runs rampant, acting as a violent personification of the many unpredictable hazards that can force policyholders to make insurance claims. During each ad, Allstate’s “Mr. Mayhem” cheerfully wreaks havoc on innocent people’s cars, boats, homes, or other property, spreading damage and destruction, all with a devious smile.

The Allstate ads are humorous and enjoyable in a number of ways. Sadly, however, one of those is irony. That’s because some unfortunate Michigan Allstate customers have experienced first-hand that the “good hands” people don’t always live up to their storied reputation – and in particularly notable cases they have actually contributed to mayhem, making loyal policyholders’ lives miserable.

Consider the case of one family from Comstock Park, a small town near Grand Rapids, whose home was damaged by a tornado in August 2023. After the storm, as WZZM TV reported, the family’s house remained in a shambles for months on end because their insurer – Allstate – coughed up only about half of the contractors’ $28,600 estimate for necessary repairs. According to the homeowner, Allstate refused to come through with sufficient funds to complete work required to meet city code. That situation left the family struggling to find the remaining money needed to fix their home… to the tune of thousands of dollars they would eventually have to pull out of their own pockets.

Allstate has also faced some hard questions from Michigan insurance regulators about whether the company’s pricing models are discriminatory. According to Consumer Reports, “older people and those living in areas labeled predominantly non-white by the Census would be most affected” by an Allstate pricing algorithm which had been prohibited by Maryland authorities but was still being used in Michigan, among several other states, as of 2021. 

It seems that other Michiganders have also had difficulties with the “good hands people” lately. For example, last summer members of a grass-roots Facebook group calling itself “We Can’t Wait” published complaints noting Allstate’s inadequate responses to customer needs, perhaps stemming from Michigan’s recent attempts at no-fault car insurance reform. [We discussed that disturbing topic in another article published when changes to the state’s Personal Injury Protection (PIP) benefit limits were being introduced a few years ago. As an aside, although you can now select a lower limit on your no-fault Personal Injury Protection benefits to save on car insurance premiums, we always recommend that our clients choose unlimited PIP coverage for sufficient protection against high medical and rehabilitation costs.]

How Can You Hold Your Insurance Company Accountable?

All of this just goes to say that, as an insurance customer in Michigan, it appears you might someday find it necessary to enlist help to compel Allstate (or any other insurance company for that matter) to keep its promises – something we described a couple of weeks ago in an article detailing the potential perils of dealing with State Farm Insurance. In that article we offered advice to Michigan policyholders on several effective avenues you can take to help hold your insurer accountable. Let’s recap them here.

First, Try Contacting Your Own Insurance Agent

The best first step in trying to get your insurer to fulfill its promised coverage is most likely to connect with your own insurance agent, someone who has a vested interest in keeping you and other policyholders happy. After all, bad word-of-mouth and negative online reviews can have a definite impact on the agent’s future business and reputation in the community at large. Calling out an individual agent (or even a major insurance company like Allstate) on social media for bad customer service or poor claims response can be a valuable tool in helping consumers level the playing field. But, to avoid legal issues, be careful that whatever you post publicly online is 100 percent accurate and truly representative of your experiences. Remember that insurance companies have aggressive legal teams and deep pockets, which leads us to a second suggested “line of defense” you might wish to contact if asking your insurance agent for assistance doesn’t pan out.

Next, Elevate Your Concerns to the Michigan

Department of Insurance and Financial Services

If it turns out that your insurance agent is unable or unwilling to lend a hand, the Michigan Department of Insurance and Financial Services (DIFS) promises to “respond promptly and completely to consumers’ insurance and financial questions and complaints, assist consumers in resolving those complaints whenever possible, and help consumers understand their options.”

The DIFS fields consumer complaints about bad insurance company practices in several ways. The first is by offering a dedicated email address to which consumers can send messages describing negative experiences with their insurers. In addition, a convenient online complaint reporting tool is available to help you document your situation and to explain to state regulators exactly how your insurance company has failed to live up to its promises. You can also get in touch with a DIFS representative in person by calling the agency directly at 877-999-6442, Monday-Friday, between 8 a.m.-5 p.m. For more information, take a few minutes to watch this official video for step-by-step details on the DIFS complaint process and how it works.

If All Else Fails, Call an Attorney

Of course, working with any state agency can become a red-tape nightmare, and there’s no guarantee you’ll be successful in having your complaint resolved through the DIFS. So, if you need to enlist a heavy hitter to have your concerns heard, contacting an attorney who’s intimately familiar with how insurance companies work (or don’t work!) might be your best bet for a successful outcome. That’s where our trusted legal team comes into the picture. To discuss your bad experiences related to Allstate or any other insurance company licensed to operate in Michigan, call us at 855-MIKE-WINS (855-645-3946), or contact us online here. We’ll assess your circumstances and let you know right away what we can do to help you… and you won’t pay a penny for our initial assessment, or anything out of pocket ever, thanks to our customer-friendly contingency fee arrangement. That’s just how we do it!

Content checked by Mike Morse, personal injury attorney with Mike Morse Injury Law Firm. Mike Morse is the founder of Mike Morse Law Firm, the largest personal injury law firm in Michigan. Since being founded in 1995, Mike Morse Law Firm has grown to over 200 employees, served 40,000 clients, and collected more than $1.5 billion for victims of auto, truck and motorcycle accidents. The main office is in Southfield, MI but you can also find us in Detroit, Sterling Heights and many other locations.