Are Non-Standard Auto Insurance Companies Lowballing Crash Victims?

Here in Illinois, all drivers are required to have auto insurance. Some drivers – especially those who are considered high-risk or have poor credit history – often turn to non-standard insurance companies for coverage.

However, people involved in accidents with drivers insured by these non-standard insurance companies often report challenges in receiving the compensation they deserve.

The ABC 7 Chicago report

ABC 7 Chicago reports that “some people who were hit by drivers with non-standard insurance say they are getting lowballed on claims.”

Debra Smith, a resident of Plainfield, Illinois, experienced these challenges firsthand. After a car accident, her car was left in a state where, as she described, “It kind of shakes in. It sounds like something’s about to crack.” Smith’s body shop estimated the repair costs at $5,320. However, American Alliance Casualty, the non-standard insurer of the at-fault driver, offered her only $805. They justified this by assigning her 25% of the fault, despite the other driver being cited for the incident. Smith contested this assessment, stating, “There’s nothing in their police report that refers to me as doing anything speeding or not paying attention.”

Attorney Neal Gainsberg, founder of Gainsberg Injury and Accident Lawyers, has over two decades of experience advocating for accident victims in Chicago and throughout Illinois. He observes that while assigning percentages of blame is legal in Illinois, it’s a tactic he encounters more frequently with non-standard insurers.

In an interview with ABC 7, he stated, “The at-fault driver is 100% at fault. I don’t see where this nonstandard company is blaming any responsibility on the victim here. Their driver must be saying something,” Gainsberg said. “That’s why it’s important, if you do get into an accident, to see if you can get a witness or video.”

Non-standard insurers, like American Alliance Casualty, often recommend using their partnered repair facilities, which offer lifetime warranties and use aftermarket parts meeting industry standards. They argue that higher repair estimates from other shops may result from selecting more expensive parts. American Alliance Casualty maintains that they adhere to all state laws in their claims processes and attribute some complaints to consumers’ misunderstandings or dissatisfaction with outcomes.

Data obtained through the Freedom of Information Act reveals that from 2022 to 2024, the Illinois Department of Insurance received 1,326 complaints against American Alliance Casualty. This places them second in the state for complaints among all auto insurers, encompassing both standard and non-standard companies. The Better Business Bureau has also issued an alert about American Alliance Casualty, noting 666 complaints over the past three years. Consumers frequently report feeling uninformed about repair timelines and claim procedures and perceive they are being given the runaround.

Non-standard auto insurance caters to drivers who might not qualify for standard policies due to factors like high-risk driving records or poor credit. While these policies provide necessary coverage, they often come with higher premiums and, as reported by some consumers, more challenging claims processes. Victims involved in accidents with non-standard insured drivers sometimes face delays, reduced settlements, or disputes over fault, complicating their recovery process.

Advice for drivers

Attorney Neal Gainsberg advises all drivers to be proactive in protecting their rights:

• After an accident, collect contact information from witnesses and take photographs of the scene
• Consult with an experienced personal injury attorney to work through your insurance claim, especially when dealing with non-standard insurers.
• Know what your insurance policy covers. You should make sure you have adequate protection in case you ever get into an accident.

Gainsberg emphasizes that being prepared can significantly impact the outcome of an insurance claim.

If you’ve been in a car accident and feel like the insurance company is giving you the runaround or offering an unfair settlement, don’t settle for less than you deserve. At Gainsberg Injury and Accident Lawyers, we fight for crash victims to ensure they receive fair compensation. Contact us today for a free consultation, and let us help you work through the claims process with efficiency and confidence. Your recovery matters — let’s hold insurers accountable together. Please call our office or complete our contact form to schedule your free consultation.