10 Worst Insurance Companies For Denied Claims

What Types Of Insurance Companies Unfairly Deny Claims?

Several companies offer various insurance policies and types of coverage, including:

• Homeowner’s insurance
• Renter’s insurance
• Car insurance, including liability coverage
• Life insurance
• Health insurance
• Disability insurance
• Pet insurance
• Travel insurance

While some of them do their best for policyholders, the worst insurance companies for home, auto, and other types of coverage use the “deny, delay, defend” strategy to minimize the amount paid for any claim. 

During the claims process, insurance adjusters may try to confuse victims with complicated explanations of coverage limits and policies. They might also pressure a policyholder into accepting less than they deserve.

Many in-depth investigations have shown that some of the biggest names in the American insurance industry across all 50 states repeatedly cut corners, refuse to pay claims, and choose a strategy of greed over consumer benefit.

Which Insurance Companies Are Considered The Worst?

Are you frustrated by an insurance company refusing to pay your claim? Are you researching which insurance companies are the best and which are the worst? You’ve come to the right place. Here are what some consider to be the ten worst insurance companies in the United States.

1. Allstate

Allstate has provided insurance to Americans since 1931. As of 2025, more than 55,000 people in the United States worked for Allstate. 

In 2024, Allstate’s profits for quarters one through three increased profits by 259%. In 2025, Allstate’s $64.1 billion in revenue earned it the 66th place on the Fortune 500, Fortune Magazine’s list of U.S. companies with the highest revenues. 

Allstate CEO Thomas Wilson admits that his priority is the shareholders — not the insured parties with claims. Allstate has a reputation for denying claims or delaying approval, creating financial challenges for their clients. Allstate uses a claim evaluation software called Colossus that undervalues claims so claimants receive less compensation. 

2. Progressive

Progressive was launched in 1937. In 2025’s second quarter, Progressive reported a net income of $3.18 billion, a notable increase from the net income of $1.46 billion in 2024’s second quarter. Progressive’s reported $75.37 billion revenue earned it the 57th spot on the Fortune 500 list. 

State of Georgia insurance officials accused Progressive of cutting corners and undervaluing claims. They say that taxes paid to an insurer need to be calculated fairly based on the cash value of the vehicle.

Progressive says they correctly calculated taxes as part of claim payouts, but they recently changed their directive to comply with state oversight on the issue.

3. UnitedHealth

Richard T. Burke launched UnitedHealth in 1977. Unlike many other insurance companies, UnitedHealth focuses exclusively on health insurance. In 2025, it earned the 3rd spot on the Fortune 500 list, reporting over $400.2 billion in revenue. UnitedHealth serves 6,400 hospitals and medical facilities, and 152 million customers. 

Federal investigators say that UnitedHealthcare underpaid COVID-19 vaccine reimbursements. They then explained the insurer would adjust their payments for millions of vaccines administered across the country. The Medicare rate was $40 per vaccine. Authorities say the insurance company did not pay even that amount per vaccine administered.

The Centers for Medicare and Medicaid Services also say that previous payouts didn’t even cover the cost of giving a vaccine. Authorities also noted that UnitedHealthcare paid too little for COVID-19 testing materials, prohibiting providers from offering testing services.

4. State Farm

State Farm has been in business since 1922. In 2025, State Farm’s reported revenue of $122.95 billion earned it the 36th spot on the Fortune 500. 

Their motto is, “Like a good neighbor, State Farm is there.” But do they pay valid claims? State Farm has been accused of denying claims or delaying payments. The United States Supreme Court recently upheld a fraud verdict against State Farm in their handling of claims following Hurricane Katrina.

The ruling found that claims adjusters tried to deny valid claims by classifying wind damage as flood damage. Victims had to resort to whistle-blowing to hold the insurance company accountable for their actions.

5. Elevance Health (Formerly Anthem)

Founded in 1946, Anthem is now known as Elevance Health. As of 2024, Elevance Health was the fifth-largest insurance company in the U.S. Elevance Health also earned the 20th spot on the 2025 Fortune 500 list with $177 billion in revenue.

One medical center in Maine says that Anthem Insurance is so bad that it will no longer be an in-network provider. They’re giving the insurance company the boot over what they claim is more than $70 million in unpaid claims to the MaineHealth network, including $13 million to the hospital alone.

The move could impact more than 150,000 patients in Maine. Patients still using the company will have to pay higher out-of-network rates to be seen at Maine Medical Center or within the MaineHealth network. Patients have also reported that Elevance Health has canceled their policies when they become ill. 

6. Unum

Unum has been providing insurance to Americans since 1848. Unum Group’s revenue dropped from $13.162 billion in 2019 to $12.014 billion and $11.991 billion in 2020 and 2021, respectively. 

One of the leading disability insurers in the United States, the company was the subject of litigation from a plaintiff who was denied long-term disability benefits.

The plaintiff alleged that the insurance company used the wrong standards to determine benefit eligibility and made a decision that was arbitrary and capricious. Although Unum has a reputation for denying disability claims, a court recently granted summary disposition in favor of UNUM Group.

Unum pays its CEO an estimated $9 million a year. 

7. Federal Employee Benefits

Despite the name, Federal Employee Benefits does not refer to a government insurance program. Federal Employee Benefits is a little-known insurance company started by Jaques Andres Frym of Pooler, Georgia.  He pleaded guilty to false oaths and false tax documents. He was ordered to pay $142,042.12 in fines and restitution. Frym then filed for bankruptcy to dismiss millions in debt. In documents, he underreported income and denied ownership of the insurance company. 

8. Farmers

People have turned to Farmers for insurance since they opened their doors in 1928. They’re currently 280th on the Fortune 500 list, with over $15.45 billion in reported revenue. 

Like many other companies on this list, Farmers has a reputation for undervaluing claims to minimize payouts or denying claims. Washington State passed the “Ethel Adams Bill” after Farmers refused to pay a client’s medical bills after an accident. It took pressure from the media, the public, and the state’s insurance commissioner for Farmers to pay the claim.

In 2021, Farmers Insurance Group was ordered to pay a former executive $155 million after improperly firing him. The verdict found that the company fired the man because he was willing to testify in a pay bias lawsuit filed by female in-house lawyers. (Coates v. Farmers Insurance Group Inc.).

The jury found that the company retaliated in violation of the California Fair Employment Housing Act and other laws prohibiting unlawful termination.

9. Liberty Mutual

Liberty Mutual launched in 2001, making it one of the youngest companies on this list. The company is currently 91st on the Fortune 500, reporting $50.429 billion in revenue. 

Liberty Mutual is accused of undervaluing automotive claims since 2023 and may face a class action lawsuit. Clients have previously sued Liberty Mutual over similar claims. There are also allegations of denying valid claims and delaying payments. 

Liberty Mutual customers may be surprised if the insurer chooses not to renew their policy. Wildfires in Colorado are affecting larger areas, impacting more residents and increasing the risk of property damage. However, Liberty Mutual is one of the insurance companies that has denied approval for new coverage in California due to the risk of wildfires. The trend is spreading to Colorado, with an increasing number of homeowners facing insurance companies that refuse to renew their policies due to the risks. 

10. USAA

USAA started in 1922, and like Farmers, it’s one of the country’s biggest homeowner’s insurance companies. USAA holds the 93rd spot on the Fortune 500 with reported revenue of $48.56 billion.

USAA advertises itself as friendly to U.S. service members. However, it’s the CEO who is raking in millions. USAA CEO Wayne Peacock received $8.1 million for his services in 2023. 

A class-action lawsuit was filed against the company in Texas in 2022. It alleges that policyholders had their vehicles deemed total losses without agreeing, having their titles revoked and salvaged.

Other Companies Known For Denying Claims

Other companies that have topped the worst insurance company lists in recent years include AIG, Global Life, Conseco, WellPoint, and Torchmark.

What Makes An Insurance Company Good?

Choosing an insurance company can be challenging. You may opt for an insurance provider who supplies several types of policies so you can save money bundling your policies. However, there are other factors to consider when choosing the best provider.

• Financial stability: Companies need to be profitable to stay in business.
• Price: Good insurance companies are not known for denying claims and they charge reasonable prices for the coverage offered.
• Service and communication: The best insurance companies have a straightforward process for filing claims and provide helpful information when you call them. 

What Makes An Insurance Company Bad?

Bad insurance companies use unscrupulous tactics intended to minimize their costs. Many tactics that bad insurance companies use involve poor communications, misinformation, and deceit.

An insurance company is bad if they:

• Don’t clearly explain why a claim is accepted or denied.
• Fail to respond to claims within a reasonable period of time.
• Make up reasons that a policy does not cover you.
• Ignore evidence that the claim is valid.
• Hope that people will give up if they delay a claim.
• Make it too hard to report a claim.
• Constantly ask for more information when processing a claim.
• Purposefully refuse coverage of claims that are covered by their policies.
• Undertake other actions to refuse payment in bad faith.
• Lowball initial offers to try to minimize payouts.
• Request your full medical history and use your medical history to deny claims.
• Try to coerce you to make a recorded statement and interfere with your right to legal representation.
• Lie about the claimant’s rights to prevent them from filing a claim or seeking all the compensation they deserve.

What Can You Do If You’re Treated Unfairly By The Insurance Company?

It’s no secret that insurance companies make a profit when people pay their premiums. But they may try to pad the bottom line by refusing to pay good claims. They may also make the claims process difficult to understand. Or communication may be minimal.

Are you the victim of a bad insurance company? Don’t give up! The steps to file a claim could be complex, but our Colorado personal injury lawyers can help you fight back and get fair compensation for your claim. 

Contact Our Personal Injury Attorneys To Protect Your Rights

Contact us for a free case evaluation. You deserve legal counsel, and we ensure financial worries won’t stop you from talking to a lawyer because we charge contingency fees. That means you don’t pay us until you win your case.

Whether you’re seeking compensation after a car accident, fighting for funds to fix your house after suffering storm damage, or getting approval from your health insurance provider for medical treatment, you have the right to get the coverage your insurer promised. 

Claimants shouldn’t have to deal with the stress of denied claims, or low settlement offers, while coping with unexpected costs for repairs or medical bills. Our lawyers and advocates draw from years of experience and expert knowledge of case law to fight bad-faith insurers, and we will only bill you for legal fees once we get you the payout you deserve.

At Bachus & Schanker, we also understand insurance claims often stem from tragic circumstances. That’s why we have a Victim Advocate’s Team, providing professional and personal services to our clients. Our advocates will help you find financial resources you can use while waiting for your settlement. They will also investigate each case, ensuring we seek compensation from the party responsible.

Contact our Denver lawyers today. We’ll answer your legal questions and explain how our legal team can help you with your insurance claim.

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