The Truth About Allstate's Courtroom Commercial

By now you've probably seen it - the ending scene to the Allstate commercial where the Plaintiff is successful (a verdict in favor of the injured party) and the family realizes they don't have enough insurance to pay the judgment. The Plaintiff's attorneys looks at the Defense attorney and the Defendant (at fault party) and in essence says we will get our money even though there is not enough insurance. "We know they have "college funds, retirements accounts . . . we will get our money". If this is not a NIGHTMARE unfolding then I don't know what is.

In my opinion, this commercial simply is NOT true for several reasons. The commercial is designed to do at least three things.
1. Sell more insurance and if you have to scare people to do it then so be it.

2. Decrease the amount of compensation for injured people because the thought of someone losing their college fund or retirement fund is a frightening thing. Put another way, if you can sell even more insurnace and then have even less claims or lower valued claims it is a GREAT day from a business standpoint.

3. Present a picture that Allstate has no responsibility if the verdict exceeds their insured's policy limits.

Now, for the rest of the story.

1. Allstate is a multi BILLION dollar company. They are very good at what they do and this commercial which is designed to sell more insurance is a prime example of just how good they are at what they do.

2. Because Allstate must pay when the verdict is rendered - doing anything and everything they can to decrease jury verdicts is always a part of their business plan. The less they pay out in claims or jury verdicts the more money they make.

3. In Florida, insurance companies have an obligation to settle cases within their policy limits when they "could have and should have" done so. If they have this opportunity, which they get in virtually all cases and they refuse to settle, then they can not just walk away when an excess verdict is rendered. An excess verdict is a verdict for more than the insured's (Defendant's policy limits).

For more on this topic, please feel free to read the Insurance Company Agenda in The Ultimate Consumer Guide to Personal Injury Cases found at our website.