Who Are Substandard Auto Insurers?

This is the first post in a series about substandard automobile insurers and Blumenshine Law Group’s fight to win compensation for our clients from these insurers.

Substandard auto insurers (also known as nonstandard insurers) have the following characteristics:

  • They almost always issue policy limits of the statutory minimum to their customers. The statutory minimum limit in Illinois is just $25,000
  • They typically target high-risk drivers who often have poor driving records
  • They usually fight claims instead of paying them

Thus, the substandard auto insurers combine a toxic brew of high risk insureds with low policy limits and a combative claims handling process. In recent years, substandard policies have been increasing substantially, with premiums received under substandard auto policies rising from $12 billion in 2014 to nearly $17 billion in 2019.

Substandard Insurer Tactics

Substandard auto insurers are notorious for using delaying tactics to avoid paying out claims to their insureds. They frequently attempt to discourage injured claimants and their attorneys by denying that any coverage exists.  In other words, they will not argue about fault or damages, they simply say the insurance policy was void due to some policy application technicality. The Illinois Department of Insurance Consumer Complaint Report proves this. The most recent annual reports list most of the top ten most complained about companies are substandard insurers. Claims Handling is far and away the most common consumer complaint.

Blumenshine Law Group has a long winning track record when it comes to dealing with substandard auto insurers. We plan a strategy and implement processes that are geared to prevail in the face of unfair claim denial by substandard insurers. Our method of ethical yet rigid litigation has provided our clients successful results. We are not afraid to take these insurers to trial when necessary to give our clients their just compensation.

This blog series will highlight stories of Blumenshine Law Group’s success against substandard insurers. 

Continue to Part 2.

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