Vermont & New Hampshire Injury Blog

Appeals Court Upholds $16 Million Bad Faith Claim Against Allstate

The Missouri Court of Appeals upheld a $16 million bad faith claim against Allstate Insurance Co.  The claim stemmed from a car accident involving a drunk driver.  The driver crossed the center line of a U.S. highway and hit a married couple's car head-on, resulting in hospital bills of over $320,000.  The couple agreed to settle the claim for the drunk driver's policy limit of $50,000; however, Allstate failed to respond to the couple's settlement letter for over six months.  The couple filed a bad faith claim and the court awarded over $10.5 million in punitive damages.  Allstate claimed it lost the couple's letter and then said they were unsure the accident was the cause of the injuries.

Allstate was also recently recognized as the worst insurance company for consumers.