Report Finds State Farm, Allstate Most Affected by Insurance Lawsuits in 2021 – Repairer Driven News

State Farm, the nation’s largest auto insurer, is also far and away the most accused, according to a recently released report by the data provider. Lex Machina.

According to the 2022 Insurance Litigation Report, State Farm was the subject of 4,831 lawsuits between 2017 and 2021, with 2,681 of these lawsuits involving motor vehicles, and 2,194 involving uninsured motorists (UM/UIM). Allstate was a distant second, defending itself against 2,688 claims, 1,180 of which were auto, and 847 of which were UM/UIM.

“Although State Farm divides its auto and fire and casualty claims into two separate companies, both companies are the most heavily sued companies, each with more than 1,000 more lawsuits than the next plaintiff,” the report says. .

Among their various companies, State Farm and Allstate took five of the top 10 spots on the most criticized list. Also on the list are Safeco, 880 defendants; Scottsdale Insurance Company, 855; Liberty Mutual, 831; GeoVera Speciaty Insurance Company, 687; and Lexington Insurance Company, 585. Most of the claims against Scottsdale, GeoVera and Lexington were against homeowners.

Looking closely at auto claims among the top 10 claimants, all are State Farm, 2,681; Allstate, 1,180; Safeco, 458; Liberty Mutual, 337; Scottsdale, 44; Lexington, 28; and GeoVera, zero.

The report does not take into account the carrier’s market share.

“Overall, insurers are defendants more often than plaintiffs. However, insurers can be seen as plaintiffs when they argue against each other to provide liability for losses,” the report says. “Insurers also appear as plaintiffs in filing claims against other insurers or insurers.”

State Farm also ranked first among plaintiffs, with 368 cases. Again, Allstate was second, with 166, followed by Evanston Insurance Company, with 156; Scottsdale is 155; There are 146 passengers; Nautilus and Zurich American Insurance Company, each with 143; Auto-Owners Insurance Company, with 140; and Owners Insurance Company, with 129. Most of the cases in Evanston, Scottsdale, Travelers, Nautilus and Zurich America involved the issuance of business loans.

Lex Machina said auto insurance lawsuits grew steadily between 2012 and 2021. “With 4,079 lawsuits filed in 2021, there was a 64% increase from 2012. One reason why more insurance claims are going to federal court may be and because the amount in dispute meets the $75,000 limit on the multi-state authority,” the report said.

Meanwhile, UM/UIM cases fell in 2021, the first decline in a decade. “This may be due to the low driving that occurred in 2020 at the beginning of the epidemic, due to the delay between the accident and the case going to federal court,” the report says.

The report also looks at the progress of all insurance-related cases between 2017 and 2021. In the district courts, 73% of cases ended in a successful way, while the plaintiffs won in 2% of the cases, and the defendants in 9%. In 15% of the cases, there was a procedural decision, and most of them were dismissed.

“When this number looks at the way these cases were resolved, the defendants should have had more cases that would have been resolved at the verdicts of the complaints and summary judgments because of the nature of the cases. In comparison, if the plaintiff wins in such parts of the trial, the cases usually do not end and continue,” the report says. “However, the number of summary judgments in favor of insurers [5% of all cases]compared to judgments on appeals and trials, they are more important than other cases.”

At the appellate court level, plaintiffs won 16% of the time, while the original decision was upheld 46% of the time. In 27% of the cases, the parties may have agreed, the report says.

In total, in 2021, insurance cases reached 14,793 cases, which is one of the worst cases of all types of insurance, said Lex Machina. This was a 47% increase in lawsuit filings since 2017, and a 19% increase in filings between 2020 and 2021. The report found a significant increase in hurricane-related filings, while auto insurance and business cases also saw an increase in lawsuits in 2021.

The Lex Machina report includes 106,416 insurance claims filed in US district courts from 2012 to 2021, and 6,305 insurance claims appealed to federal courts from 2012 to 2021.

This report includes data-driven insights into the behavior of courts, judges, parties, and law firms, and should be used in planning, forecasting, and litigation strategies.

More information

For a copy of the full report, visit Lex Machina website.


Photo by DNY59/iStock

Photos provided by Lex Machina

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