• Report: #134414

Complaint Review: Nationwide Insurance

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  • Submitted: Wed, March 09, 2005
  • Updated: Sun, February 19, 2012

  • Reported By:Allen Texas
Nationwide Insurance
One Nationwide Plaza Columbus, Ohio U.S.A.

Nationwide Insurance Ripoff! Insurance fraud Columbus Ohio

*Consumer Comment: Nationwide insurance

*Consumer Comment: Nationwide is not on your side.

*Consumer Suggestion: "K" is mistaken. Constance did not commit fraud.

*Consumer Comment: Return the extra money Constance!

*Consumer Comment: Constance this is for you

*REBUTTAL Individual responds: Nationwide unethical business practices I was unable to retrieve my damaged car

*UPDATE Employee: file a complaint with TDI

*UPDATE Employee: the numbers speak for themselves

*Consumer Comment: Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

*Consumer Comment: Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

*Consumer Comment: Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

*Consumer Comment: Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

*UPDATE Employee: confused about your coverages?

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In November of 1997 my wife was driving to church with our two year old toddler in the back seat of our 1991 Honda Accord EX. A driver insured by Nationwide ignored a solid red light (which had been red for about 15 seconds already) and nailed our car on the driver's side rear wheel area.

Our car was spun at least 180 degrees by the impact. The toddler was unhurt, but my wife's lower back suffered a permanent injury that sometimes causes her a great deal of pain, including shooting pains down her legs and numbness in her fingers.

She lost her job as she could no longer fufill the physical requirements of it. The bills began to mount quickly. She saw an assortment of doctors and a physical therapist. We collected from our company (USAA) to the maximum limit allowed by our policy (Uninsured/Underinsured Motorist) within a few months of the accident.

Nationwide was a completely different story. Their claims agent, Jaime Herrera, kept pushing us off with various lame excuses such as "He didn't have our paperwork". We spoke with clerical assistants in doctor's offices as they were feeding faxes into their machines and Jaime would then state he hadn't received them anyway. We finally gathered all the papers ourselves and shipped them certified mail. Made no difference. Nothing budged with Nationwide for over a year. Finally, I called one day and learned that our claim had been turned over to a new agent. We were back to square one.

At this point, I got a lawyer. He began stirring some life out of Nationwide, but they kept playing hardball, refusing to pay their insured's policy limit. Their insured driver was carrying the state of Texas' legal minimum for liability insurance and yet they wouldn't even pay that meager amount. I say meager when compared to the lifetime injuries my wife suffered.

Finally, we sued the insured just short of the two year cutoff and Nationwide settled within a couple months as we began closing in on a court date. They paid the policy limit and washed their hands of us. What Nationwide had done was completely unethical and contrary to the terms of their charter to provide property and casualty insurance in the state of Texas. They were completely fraudulent in seeking to settle this claim.

Two lessons. 1) Always carry a high limit for UM/UIM. 2) Don't go near Nationwide Insurance. My wife still has pain and still is not up to the physical requirements of her old job. Thank you, God for sparing our toddler from ANY injury in this mess. Thank you also that Nationwide's insured driver admitted 100 percent fault in the accident. That helped keep the Big N on the hook.

S
Allen, Texas
U.S.A.

This report was posted on Ripoff Report on 03/09/2005 09:03 PM and is a permanent record located here: http://www.ripoffreport.com/r/Nationwide-Insurance/Columbus-Ohio-43215-2220/Nationwide-Insurance-Ripoff-Insurance-fraud-Columbus-Ohio-134414. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 12Consumer 1Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

Nationwide insurance

AUTHOR: ed mardt - (United States of America)

Any Nationwide Insurance agent who is not embarrassed about working for this bottom of the barrel " so- called" insurance company must have the same lack of morals and ethics as this company. Birds of a feather flock together!
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#2 Consumer Comment

Nationwide is not on your side.

AUTHOR: Anonymous Consumer Advocate1 - (United States of America)

All you nationwide employee comments about how your great your company is are of little value . Why dont you comment on some of the Fraud perpetrated by your company . If I google nationwide insurance + Fraud . Or Nationwide Insurance + Bad Faith , I receive thousands of cases . You work for an insurer who is listed on badfaithinsurance dot org as being one of the 10 worst . Why dont you tell us about the Mar 19 1999 lawsuit in washington state against nationwide ?

You guys sell a phoney promise and than do everything you can to get out of paying it . You even screw your own insured . Currently there is no web site assembling all this illegal activity that your company is engaged in , but soon there will be . The internet is peppered with nationwide victims.
People are tired of maggots like you .

So take your kneepads off . Nationwide has screwed their own employees . Grow up and get a real job .
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#3 Consumer Suggestion

"K" is mistaken. Constance did not commit fraud.

AUTHOR: Mike - (U.S.A.)

Constance's car was totaled. The owner and the other guy's insurance company agreed on the ACV and the salvage value and settlement was paid accordingly.

What you do with the car or the money after that is none of the insurance company's business.

The ripoff is the law that prohibits you from reconstructing your own car. I can see the merit of laws preventing such cars from beign sold to unsuspecting buyers, but if it is your car as long as it is not a threat to public safety you should be allowed to drive it.
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#4 Consumer Comment

Return the extra money Constance!

AUTHOR: K - (U.S.A.)

Constance said, "It was obvious that they wanted my car. The total value was $2700.00. They let me buy-back my car for $260.00 and they sent me a check for $2440.00. Remember all I wanted was my damaged car in the first place. Now the "kicker" is that the transaction required that I send Nationwide my Certificate of Title which made them the owner and the DMV sent me a Certificate of Destruction. I replaced the rear door to the wagon with a good door from the "junk" yard for $53.00. The rest of the car had no damage. The problem is that I have a perfectly good car that I cannot insure or drive."

I seriously doubt that the insurance company "wanted" your totalled vehicle. They would not be able to sell it for more than a couple hundred dollars because it is now considered totalled.

And since it only cost you $53 to replace the door from the junk yard and you received $2440 for the damages, obviously you were overpaid and should consider sending the money back to the insurance company.

Insurance companies total vehicles for your safety. If it costs more to repair your vehicle than it is worth, the vehicle is no good. But in your case, you were obviously overpaid. Return the difference to the insurance company before they find out and charge you with insurance fraud.
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#5 Consumer Comment

Constance this is for you

AUTHOR: Mark - (U.S.A.)

Constance,
The State of Florida has title laws that all insurance companies must adhere to. The law states that if a vehicle repair exceeds 80% of the actual cash value they MUST total the car and secure the title as the amount is over $1500.00. I understand the you feel you have a good car that you can drive, but your complaint is levied at the wrong entity, it should be at the State Of Florida and their antiquated law that went on the books in 1986, and has not kept up with inflation. The law should be limited to vehicles over a $3000.00 value, not $1500.00. Now as far as NW offering you more to buy it back???? Why would they want to do that? The car has no salvage value, and would cost them to get rid of it. That I find hard to believe, I work in the salvage industry, that car is only a crusher.
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#6 REBUTTAL Individual responds

Nationwide unethical business practices I was unable to retrieve my damaged car

AUTHOR: Constance - (U.S.A.)

My consumer complaint is that once Nationwide got my car for an estimate of damages, I was unable to retrieve my damaged car. Their estimate of damages was $2574.00 which was 89% of the total value of my 8 year old Ford Escort Lx wagon. No matter how many times I said, "I just want my car" I could not regain physical possession.

It was obvious that they wanted my car. The total value was $2700.00. They let me buy-back my car for $260.00 and they sent me a check for $2440.00. Remember all I wanted was my damaged car in the first place. Now the "kicker" is that the transaction required that I send Nationwide my Certificate of Title which made them the owner and the DMV sent me a Certificate of Destruction. I replaced the rear door to the wagon with a good door from the "junk" yard for $53.00. The rest of the car had no damage. The problem is that I have a perfectly good car that I cannot insure or drive.

Now that's not the end of the story! On 01/18/05 (three months after the MVA) Nationwide had the audacity to call me and offer me $454.00 to buy-back my car!

I have been very active with emails to Governor Jeb Bush, Atty. General Charlie Crist, Mr. Tom Gallagher at the Dept. of Financial Services, the DMV, The Pinellas County Justice and Consumer Services with multiple letters everywhere including the CEO of Nationwide W.G. Jurgensen, One Nationwide Plaze, Columbus, Ohio 43215-2220

I might be making some progress, I hope. Nationwide has caused me "loss of use" of my own car and what they did is a total miscarriage of justice, though not illegal according to the "Laws of Florida". This unethical business practice does not "qualify" for fraud but it surely can be considered racketeering.

It's like parking your car in a paid lot and then being told that the parking lot is keeping your car. All I wanted was my damaged car! The legal counsel I talked to said that they, "Do it to everybody".
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#7 UPDATE Employee

file a complaint with TDI

AUTHOR: Brandi - (U.S.A.)

This is in addition to my previous response regarding insurance companies claims handling. I did not want it to sound like I am arguing the fact that you had a legitimate complaint in how your claim was handled through Nationwide and if there was any thing I personally could have done to make it better I would have. Unfortunately there are some claims that do not get handled in a timely manner and if someone really does have a legitimate problem with an insurance company then they need to file a complaint with thier state's insurance department so that every company is held accountable for their actions so hopefully that won't happen to someone else in the future.

Sincerely,
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#8 UPDATE Employee

the numbers speak for themselves

AUTHOR: Brandi - (U.S.A.)

First, I am not in any way embarrased that I work for Nationwide Insurance. I am embarassed that the insurance industry in general has a bad reputation because of some companies claims handling. I am sorry you had a bad experience with my company. I do think however that the numbers speak for themselves. The top auto insurance writers in Texas are State Farm, Allstate, Farmers, Nationwide, Geico and Progressive. The complaints on this site against these companies are at this time as follows:

Progressive - 121
Geico- 83
Allstate- 38
State Farm - 34
Farmers - 20
Nationwide- 13

If you consider the fact that there will always be someone who is dissatisified with the service that a major company provides, the next best thing you can do is your research (which is why I personally use this site) to see who tends to have the least amount of dissatisfied consumers. If I were looking for a new auto carrier in Texas and I went to this site to see how many people complain about how thier claim was handled or their policy was serviced, then I would have to go with Nationwide based on what I learned from this site. You can also go see the financial stability ratings of these companies on AM Best.com or Standard and Poors and you will again see that Nationwide is one of the strongest companies financially. So I definitely have to say that I am actually proud to see that the company I represent has the lowest # of complaints while at the same time being one of the largest companies writing in Texas.

P.S. The state minimum limit for bodily injury per person is 20,000 in Texas. Even if Nationwide held on to that amount for two years earning 10% interst on that money(which is actully probably much lower than that) it would add up to about $4000. We spent more than that dealing with your attourneys and handling your claim so that is not the reason your claim was not finished in a time frame that you deemed acceptable.

Sincerely,
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#9 Consumer Comment

Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

AUTHOR: S - (U.S.A.)

Prior to the accident's occurrence, my wife's car was covered by USAA with UM/UIM, as well as liability and comprehensive coverage. The other driver had at least liability coverage with Nationwide Insurance Company of Columbus, Ohio. Within two weeks of the accident, Nationwide paid for the repairs necessary for our car. Within a few months of the accident, USAA had paid OUR policy limit for UM/UIM. Following USAA's policy exhaustion, we petitioned Nationwide to pay for the physical injuries to my wife and their treatment. They fraudulently lost our paperwork, changed claims representatives on us and lowballed us in hopes we would accept far less than the policy limit. The other driver was carrying only the Texas state minimum anyway, from all indications. When we sued the other driver and Nationwide finally paid up, we learned that the other driver had indeed only been carrying the state's minimum coverage. Why didn't Nationwide just go ahead and settle this thing a year sooner? Nothing changed during that second year of waiting, other than our conviction that Nationwide was dragging this out to earn interest on the premiums collected. Repeatedly demanding paperwork, claiming not receive it, and then dumping the entire claim into the lap of a new claims rep after a year of wrangling smacks of foot-dragging.

My blood boils every time I see an advertisement for Nationwide Insurance. I have nothing good to say about them. They tried to sweat us out for two years so we would take a lowball settlement offer. Disgusting. Personally, I would be embarrassed to work for a company engaging in such tactics.

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#10 Consumer Comment

Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

AUTHOR: S - (U.S.A.)

Prior to the accident's occurrence, my wife's car was covered by USAA with UM/UIM, as well as liability and comprehensive coverage. The other driver had at least liability coverage with Nationwide Insurance Company of Columbus, Ohio. Within two weeks of the accident, Nationwide paid for the repairs necessary for our car. Within a few months of the accident, USAA had paid OUR policy limit for UM/UIM. Following USAA's policy exhaustion, we petitioned Nationwide to pay for the physical injuries to my wife and their treatment. They fraudulently lost our paperwork, changed claims representatives on us and lowballed us in hopes we would accept far less than the policy limit. The other driver was carrying only the Texas state minimum anyway, from all indications. When we sued the other driver and Nationwide finally paid up, we learned that the other driver had indeed only been carrying the state's minimum coverage. Why didn't Nationwide just go ahead and settle this thing a year sooner? Nothing changed during that second year of waiting, other than our conviction that Nationwide was dragging this out to earn interest on the premiums collected. Repeatedly demanding paperwork, claiming not receive it, and then dumping the entire claim into the lap of a new claims rep after a year of wrangling smacks of foot-dragging.

My blood boils every time I see an advertisement for Nationwide Insurance. I have nothing good to say about them. They tried to sweat us out for two years so we would take a lowball settlement offer. Disgusting. Personally, I would be embarrassed to work for a company engaging in such tactics.

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#11 Consumer Comment

Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

AUTHOR: S - (U.S.A.)

Prior to the accident's occurrence, my wife's car was covered by USAA with UM/UIM, as well as liability and comprehensive coverage. The other driver had at least liability coverage with Nationwide Insurance Company of Columbus, Ohio. Within two weeks of the accident, Nationwide paid for the repairs necessary for our car. Within a few months of the accident, USAA had paid OUR policy limit for UM/UIM. Following USAA's policy exhaustion, we petitioned Nationwide to pay for the physical injuries to my wife and their treatment. They fraudulently lost our paperwork, changed claims representatives on us and lowballed us in hopes we would accept far less than the policy limit. The other driver was carrying only the Texas state minimum anyway, from all indications. When we sued the other driver and Nationwide finally paid up, we learned that the other driver had indeed only been carrying the state's minimum coverage. Why didn't Nationwide just go ahead and settle this thing a year sooner? Nothing changed during that second year of waiting, other than our conviction that Nationwide was dragging this out to earn interest on the premiums collected. Repeatedly demanding paperwork, claiming not receive it, and then dumping the entire claim into the lap of a new claims rep after a year of wrangling smacks of foot-dragging.

My blood boils every time I see an advertisement for Nationwide Insurance. I have nothing good to say about them. They tried to sweat us out for two years so we would take a lowball settlement offer. Disgusting. Personally, I would be embarrassed to work for a company engaging in such tactics.

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#12 Consumer Comment

Clarification of coverages Personally, I would be embarrassed to work for a company engaging in such tactics

AUTHOR: S - (U.S.A.)

Prior to the accident's occurrence, my wife's car was covered by USAA with UM/UIM, as well as liability and comprehensive coverage. The other driver had at least liability coverage with Nationwide Insurance Company of Columbus, Ohio. Within two weeks of the accident, Nationwide paid for the repairs necessary for our car. Within a few months of the accident, USAA had paid OUR policy limit for UM/UIM. Following USAA's policy exhaustion, we petitioned Nationwide to pay for the physical injuries to my wife and their treatment. They fraudulently lost our paperwork, changed claims representatives on us and lowballed us in hopes we would accept far less than the policy limit. The other driver was carrying only the Texas state minimum anyway, from all indications. When we sued the other driver and Nationwide finally paid up, we learned that the other driver had indeed only been carrying the state's minimum coverage. Why didn't Nationwide just go ahead and settle this thing a year sooner? Nothing changed during that second year of waiting, other than our conviction that Nationwide was dragging this out to earn interest on the premiums collected. Repeatedly demanding paperwork, claiming not receive it, and then dumping the entire claim into the lap of a new claims rep after a year of wrangling smacks of foot-dragging.

My blood boils every time I see an advertisement for Nationwide Insurance. I have nothing good to say about them. They tried to sweat us out for two years so we would take a lowball settlement offer. Disgusting. Personally, I would be embarrassed to work for a company engaging in such tactics.

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#13 UPDATE Employee

confused about your coverages?

AUTHOR: Brandi - (U.S.A.)

I am an agent in a Dallas area Nationwide agency. I am sorry that your wife was injured as I know how frustrating it can be to have to deal with having a bad accident, especially one that is not your fault. What I do not understand is the order in which you say the coverage was paid.

You stated that your uninsured/underinsured motorist limit was paid right away and then you had a difficult time with Nationwide paying thier portion of the liabilty.

Uninsured/underinsured is exactly that. Insurance companies do not in general pay out that coverage unless one of two things happen.
1. Their insured incurs property damage or bodily injury in a situation where the at fault party did not have coverage at the time of the accident. Hence the term "uninsured".

or
2. The liable party did not carry enough coverage to pay for the other partys damage or injuries. That is the "underinsured" part.

Your story doesn't quite add up in the fact that you are stating you were paid you full limit of UMC. Then you were paid the liability. It is very possible that your wife injuries did exceed the state limit you say the other party carried, however an insurance company does not pay underinsured until the other party's limit has been exhausted. That leads me to believe that the other party did not have coverage at the time of the accident. That might have been part of the reason Nationwide did not want to pay a claim you had already been paid for. I think there might be some details in this story that have been left out and probably unintentionally. Again I am sorry for the loss you and your family experienced, but I deal with policyholders every day who have complaints that usually stem from the fact that they do not understand how insurance works, not how they want it to work. Any you are right, everyone should carry a high UMC limit and a high liability limit. Unfortunately most people think that is just the insurance company is out to get more of their money. I hope any one who read this report takes their agent's advice of carrying more coverage that way in the future we don't have a report on here from you about how you were covered properly for your claim. By the way, "S", if there was something left out in your report please update me so I can truly understand what happened in your situation.

Sincerely,
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