Fresh Insurance Woes, to the Surprise of Few

O'Donnell Law Offices — Wed, 26 Aug 2026 14:08:28 +0000

Written by Attorney Neil T. O’Donnell and Attorney Connor Graham

Rising Insurance Claim Denials

Plaintiff’s attorneys across the country have noticed an uptick in denials of uninsured/underinsured motor coverage (UM/UIM) by insurance companies. The concrete data is now coming in.

A recent Wall Street Journal article finds that, over a span of 10 years, there have been a striking increase in denials of auto-insurance liability, medical, and UM/UIM claims.¹ Employees of the Journal analyzed date filed to the National Association of Insurance Commissioners for the period between 2016 and 2025. Liberty Mutual had the highest increase of denials, surging from 29% in 2016 to 54% for 2025. They are closely followed by State Farm, who went from 26% to 47%. Geico was relatively steady, going from 35% to 37%; their insureds know of the company’s consistency right from the Gecko.

What May Be Driving the Increase

The cause of this phenomenon is assumably multifaceted, but we can gleen some information from the numbers. Team Shoreline, a public adjuster company servicing Florida, Minnesota, and Wisconsin, notes that the share of low-dollar claims dropped from 41.5% in 2019 to 25.5% by mid-2025.² This means that drivers are filing a larger share of expensive claims, which insurers fight harder against.

Bad Faith Insurance Practices

Some of this may be bad faith insurance practices.³ Bad faith requires proving that (1) the insurer did not have a reasonable basis for denying benefits under their respective policy, and (2) the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.⁴ Some examples of bad faith border on ludicrous company behavior.

What This Means for Insurance Claimants

Taken together, insurance claimants are increasingly feeling that the deck is being stacked against them. Claimants’ attorneys feel that bad faith insurance practices can’t be properly pursued under governing law. It can at times be a vexing situation, but not unworkable.

If your insurance carrier refuses to have your auto injury claim - call us - we can help.

¹ Eaglesham, Jean, and Jeffrey-Wilensky, Jaclyn. If You Get in a Car Crash, the Risk Is Growing Your Insurance Won’t Pay, The Wall Street Journal. Aug. 9, 2026. Accessed Aug. 17, 2026. https://www.wsj.com/finance/if-you-get-in-a-car-crash-the-risk-is-growing-your-insurance-wont-pay-1522236c?st=mK7R7Z&reflink=article_email_share.

² Auto Isnurance claim Trends: Why Your Payout Is Shrinking And What To Do About It,Shoreline Public Adjusters. March 2026. Accessed Aug. 17, 2026. https://www.teamshoreline.com/blog/auto-insurance-claim-trends

Data obtained from CCC Intelligent Solutions’ analysis of paid claim trends, See https://www.cccis.com/reports/crash-course-2025/q4#Paid-Claim-Trends.

³ In Pennsylvania, if an Insurer acts in bad faith during the claims process, a party is entitled to additional remedies. See 42 Pa.C.S. § 8371.

⁴ See Devincenzo-Gambone v. Erie Ins. Exch., 2025 PA Super 235, 347 A.3d 1116, 1122

Has Your Auto Insurance Claim Been Denied?

If your insurance company has denied or undervalued your auto injury claim, O’Donnell Law Offices can help you understand your rights and determine your next steps. Contact us today for a free consultation. There is never a fee unless we win.