Fact-Checked: Why Trust Rittgers Rittgers & Nakajima We previously told you about a report from one of the country’s largest insurance claims processors that was essentially the industry’s advice to itself. Two lines from that report stuck with us:
- “The average cost of claims with attorney representation was 14.3 times higher than the average cost of claims closed in 2019 without an attorney.”
- “Litigation avoidance at the claim stage must continue to be a focus.”
Translation, as we put it then: insurance companies pay the least, earliest to those without lawyers—and they are working hard to get regular people to take a low number before they ever think to call a lawyer.
New Data Shows Zero-Payout Claims Are Spiking
That was the strategy. Now, thanks to the Wall Street Journal, we can see some of the results. In an August 2026 article, the Journal analyzed thousands of insurers’ regulatory filings and found that auto insurers didn’t pay at all on 45% of the liability and medical claims resolved last year—up from about 35% a decade ago.
Carrier by carrier, the jump is staggering:
- Liberty Mutual: 29% → 54%
- State Farm: 26% → 47%
- Farmers: 19% → 39%
- Allstate: 46% → 54%
This increase is exclusive to liability and medical claims as opposed to property damage claims—in other words, the system is getting tougher in cases when someone gets hurt and has the greatest need.
The Motive Behind Lowball Offers and Denials
And what unique incentives do insurers have to lowball? As we’ve previously explained, it involves the insurance “float”—the collect-now, pay-later model Warren Buffett has openly praised.
Put the insurance report and the Journal’s data side by side and the picture is complete: The industry told itself to avoid payouts and settle people early and cheap. The numbers now prove the strategy is working—on everyone except the people who fight back.
Why Legal Representation Changes the Outcome
These statistics are not a reason to give up. To the contrary, they are a reason to make sure that you hire a lawyer that is willing and known to go to court because the data also reveals that people with real trial lawyers are the ones getting paid the most on their claims.
If you are one of the statistics mentioned in the WSJ article—someone for whom an insurance company is lowballing or outright denying your claim—you owe it to yourself to get a free case evaluation before accepting any number. Call Rittgers Rittgers & Nakajima at 513-496-0134 for your free case evaluation.