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You filed a claim with State Farm after an accident, provided the information the adjuster requested, and waited for a decision. Then the company denied your claim or offered an amount that comes nowhere close to covering your losses.
Recent allegations about State Farm’s claims practices have given policyholders another reason to question those decisions.
Internal State Farm communications that recently became public reportedly discuss claims closed without payment, reductions in indemnity payments, and the savings associated with paying less on certain claims. One communication cited a 39% “closed without payment” rate, while another referenced a $1.4 billion decrease in indemnity payments from 2020 to 2021.
State Farm disputes allegations that it improperly denied or underpaid claims. The litigation involves property insurance claims, but the controversy has raised broader concerns about the financial incentives involved when an insurance company evaluates what it will pay.
If State Farm has denied or reduced your California injury claim, you can have that decision reviewed. Thorsnes Bartolotta McGuire has represented injured people for nearly five decades and recovered more than $2 billion in verdicts and settlements. Call (619) 236-9363 or contact us online for a free case review.
The allegations involving State Farm arose from its handling of wind and hail property claims and an internal program known as the Hail Focus Initiative. Oklahoma Attorney General Gentner Drummond has accused the insurer of using claims-handling practices that resulted in legitimate claims being denied or underpaid.
Thirty-one internal State Farm documents have since become public. According to reporting on those records, company communications discussed:
- A 39% rate of claims closed without payment;
- A $1.4 billion decrease in indemnity payments from 2020 to 2021; and
- Savings of more than $15,000 on certain claims alleged to have been denied or underpaid.
State Farm denies wrongdoing and maintains that it evaluates claims individually based on the facts and applicable insurance coverage. The Oklahoma Insurance Department is reviewing the newly released information as part of its examination of State Farm’s claims practices.
The dispute has yet to determine whether the allegations against State Farm will ultimately be proven. For someone who has already received a denial or low offer from State Farm, however, the reason the company gives for its decision deserves careful review.
An insurance company can dispute an injury claim for many reasons. After a car accident, State Farm could argue that its insured did not cause the crash, question whether your injuries resulted from the accident, or disagree with the amount of compensation you are seeking.
Common disputes include:
- Liability. State Farm may contend that you caused or contributed to the accident.
- Medical causation. The insurer may argue that an injury resulted from a preexisting condition rather than the crash.
- Treatment. An adjuster may question whether certain medical care was reasonable or necessary.
- Lost income. State Farm may dispute how much work you missed or whether your injuries prevented you from working.
- Pain and suffering. The insurer may place a lower value on the physical and emotional effects of your injuries.
- Future losses. A settlement offer may fail to account for additional treatment, reduced earning capacity, or lasting limitations.
A denial or reduced offer should identify where the disagreement lies. From there, the evidence can be examined to determine whether State Farm’s position is supported by the facts.
A State Farm adjuster has already evaluated your claim from the insurer’s perspective. Before accepting that assessment, Thorsnes Bartolotta McGuire can examine the accident, your injuries, and the losses State Farm has disputed. Call (619) 236-9363 or send us a message to discuss your claim.
Yes. State Farm’s decision about what it is willing to pay does not determine the legal value of your personal injury claim.
Challenging an insurer’s position usually begins with identifying the evidence behind the disputed issue. Police reports, photographs, surveillance or dashcam footage, witness statements, medical records, employment records, and expert testimony can all become important depending on the reason for the denial.
California’s comparative negligence law can also affect disputes over fault. Even if you were partially responsible for an accident, you can generally still pursue compensation, although your recovery can be reduced by your percentage of responsibility.
For example, if your damages total $200,000 and you are found 20% responsible for the accident, your potential recovery would generally be reduced by 20%, leaving $160,000. An insurer’s attempt to place more responsibility on you can therefore have a substantial effect on the value of your claim.
A settlement offer gives you a choice. You can accept it, reject it, or negotiate for a different amount.
Before making that decision, you need to know what the claim must account for. Current medical bills and vehicle damage may be relatively easy to calculate. Future treatment, lost earning capacity, chronic pain, disability, and other long-term consequences can require a more detailed evaluation.
Signing a settlement release generally ends your ability to pursue additional compensation for that claim. If you later require surgery, cannot return to the same job, or discover that an injury will cause permanent limitations, you usually cannot return to State Farm and ask it to increase a settlement you already accepted.
An early offer can therefore require particular caution when your medical treatment is ongoing or your prognosis remains uncertain.
Negotiations do not always resolve an insurance dispute. When the evidence supports a greater recovery and State Farm refuses to offer reasonable compensation, filing a personal injury lawsuit may become an option.
Litigation allows your attorney to obtain evidence through discovery, question witnesses under oath, retain experts, and present the case in court. Depending on the circumstances, additional legal issues can arise when an insurer’s conduct goes beyond an ordinary disagreement about the value or coverage of a claim.
Thorsnes Bartolotta McGuire has represented plaintiffs in complex litigation since 1978. Our attorneys prepare cases with the possibility of trial in mind and pursue the evidence needed to establish liability and damages.
The allegations surrounding State Farm have brought renewed attention to how insurance claims are evaluated and what happens when an insurer decides to pay less or nothing at all. If you are currently disputing a State Farm decision, the focus now belongs on the facts of your claim and whether the company has a valid basis for its position.
Thorsnes Bartolotta McGuire has represented injured people throughout California for nearly five decades, recovering more than $2 billion in verdicts and settlements. Our attorneys handle insurance negotiations and litigation involving serious injuries and substantial financial losses.
If State Farm has denied your injury claim, disputed your losses, or made a settlement offer that does not fully account for your injuries, call (619) 236-9363 or contact us online for a free consultation.
