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Founders Insurance Company / Unethical, deceitful business practices!

1 P.O. Box 60017Des Plaines, IL, United States Review updated:
Contact information:
Phone: 847-768-0068

I had the pleasure of someone hitting my daughter's car who was insured by Founders Insurance. The insured person that hit my daughter's car received 3 tickets, one of which was a DUI. My husband and I arrived at the accident to find this driver very drunk, alone in her car (I'm going somewhere with that one), and completely irate about hitting my daughter's car. We contacted this absolutely wonderful company to put in a claim. Everything was great at first, they immediately sent me to get an estimate. They requested that we fill out a Report of Accident and Claim form as well as send them a copy of the police report and tickets that their insured received. With all that documentation, especially the one that stated their insured driver was arrested for DUI that night, they still denied the claim (after 3 months of them investigating). On what basis you ask? Oh, it's elementary my dear, their insured driver said she wasn't the driver that night, it was her invisible sister. Now, they tell me that I was denied, seriously folks, because their insured driver is not cooperative. Next time, I'll just purchase tickets to see the clowns at Barnum and Bailey!

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  • Jo
      3rd of Apr, 2008
    0 Votes

    Another ignorant consumer! I understand the frustration however there is no such possibility that this is the fault of the company. Their contractual obligation is to their insured not to a third party. And by their insured going through the steps of completing forms and giving statements to the company, the company owes that obligation back to their insured. It is an unfortunate circumstance and this is why you have full coverage. The one thing most consumers do not realize is that coverage is separate from liability. If coverage is not afforded they have not taken the step of reviewing liability. Another point denying for non-cooperation is much different then denying coverage for non-permissive use.

  • Ve
      16th of Sep, 2008
    0 Votes

    Yes I have exprienced something similar with Founders. I also found out that they help there customer with passing the drug test so I see why the company is the way it is.

  • Ve
      16th of Sep, 2008
    -1 Votes

    Yes I have exprienced something similar with Founders. I also found out that they help there employees with passing the drug test so I see why the company is the way it is.

  • Pr
      16th of Sep, 2008
    0 Votes

    I am not sure where you get your information regarding Founders helping their employees pass a drug test?? I worked for this company for 3 years and that is a big false lie!!! It unethical and the company may be in a big law suit if this was true. However, regarding the initial complaint its unfortunate why the claim would be denied on the info you submitted?? If the insured was issued 3 tickets what other proof do they need???? I didnt work in the claims department so I am not sure with the actual procedures are for honoring a claim. This is simple my opinion.
    Email not valid, , , , , , , , , , , , simple comment

  • Ah
      18th of Sep, 2008
    -1 Votes

    I'm starting to question the business creditability. I hate to say this however I am not the most responsible person i know in making this type of statement. I'm always getting a statement in the mail reminding me of the bills i must pay accept for one, you got it FOUNDER! it was like two or three months before I realized that i haven't paid any insurance on my car. When I called the 1-800 number and i tried to pay with my debit card, I wasn't able to. Seriously, the answering machine would not allow me to pay for insurance. with saying all that, if anyone knows who I would be able get ahold of for insurance please email me @

  • Wi
      5th of Mar, 2009
    0 Votes

    Fokks if you have an issue with Founders this may help. Founders is owned by Nationwide. I would write to the CEO of Nationwide and tell him about the way the subsidiary is operating. Maybe he or she will be embarrassed enough to do something about it.

    As to Joe's comment about a company denying for non-cooperation. That might be a valid point if, and only if, the company could demonstrate that failure to cooperate was prejudicial to the company. When the insured driver hits a parked car and there is no dispute about liability then failure to cooperate is not prejudicial and non-cooperation is not a valid coverage defense.

  • Mi
      9th of Apr, 2009
    0 Votes

    To comment on will's comment - Founders is not owned by Nationwide. The CEO of Nationwide has no interest in Founders. Founders and Nationwide are linked but only by ownership in that the owner of Nationwide is the owner of Founders and the owner of both entities is not the CEO of either company. If you have an issue with the way Founders is running - contact their President.

  • Ta
      10th of Jul, 2009
    0 Votes

    my self and my daughter was riding in the car with someone when we hit from behind by someone talking on her cell phone and thank God that we were not seriously injured but enough that I had to take a couple days off work Dr.'s orders and my daughter complained of headaches for a while they have continuously told me that its being investigated and we were never compensated this was in feb. /09 and here it is july still with no word from founders huh some company

  • Cr
      20th of Jul, 2009
    0 Votes


  • Wh
      10th of Aug, 2009
    0 Votes

    I was in an accident with a person who was "insured" by Founders. The other party was at fault, he rear-ended me at a stoplight.

    After being jerked around by Founders, and sent to a low-ball body shop for an estimate, I opened a claim with my insurance company. Amazingly, I had an adjuster at my work the next day, who did an estimate and cut me a check on the spot. When I asked if there was any conditions on where I could take my car for repair, the adjuster replied "It's your car, take it to where you feel comfortable having it repaired." Wow, what a pleasure to deal with a REAL insurance company.

    Founders sent me a check based on the estimate from the low-ball body shop, which had the words "Full and final payment" written on it. I wrote VOID all over it and sent it back to them. Their check was about half of what the final repair bill turned out to be. I did have to pay my deductable, but I was able to get my car fixed immediately, and at a shop that I chose, not Founders.

    The accident happened in March, and here it is August, and I still don't have my deductable back from Founders yet.

    Hope that you never have to deal with this "Insurance" company.

  • Th
      18th of Sep, 2009
    0 Votes

    My fence and garage was damaged by a Founders Insurance customer back in July. For the past 2 months, I have been told that they cannot contact the insured. What does that have to do with me and my property? I believe I am being scamed. Who can we talk to? Is there an agency that governs insurance companies to make sure that they are being ethical? If anyone knows, please let me know.

  • Ra
      10th of Jan, 2010
    +1 Votes

    Founders told me that they couldn't contact their insured as well!!! Coincidence? I think Not! Their insured hit me 6/2009 and I am still waiting to be reimbursed for $13, 000.oo in medical and not to mention the time missed off work and pain and suffering. I lost my job, home and car due to these idiots. Homelessness is not fun and is hurtful, knowing I have worked so hard to have been where I was in life, only to have a greedy, thoughtless, and heartless company to rip it all away, unlawfully!!! I can't even obtain an attorney. Someone PLEASE help me if you can!!! My email is

  • Sd
      21st of Jan, 2010
    0 Votes

    @ rara980

    I am so sorry that you are going through this rough time. Have you filed a complaint with the BBB? They already know that this company is full of [censored], they gave Founder's Insurance an F rating. I hope like hell they go out of business for destroying people's lives.

    Anyway, I am the person who wrote this particular complaint, to answer the first guy's comment on my complaint regarding me being an ignorant costumer. Yes, by the time your done [censored]ing with Founders, you've become one ignorant s.o.b.! I do recall, my last conversation with Founder's, I asked the lady who was handling the case if she had a teenage daughter, she said yes. I told her that I hope a [censored]ing drunk driver with the same of kind bull[censored] insurance hit her teenage daughter while driving and see how the hell it feels!

    BTW, regarding the full coverage thing, well I have 3 cars (all insured by State Farm - full coverage on 2), the car that was hit was an old 94 honda accord, that's the one we bought for our teenage daughter to learn how to drive, so we only needed liability. State farm can only fight for you when you have full-coverage, which is understandable. This should have been an open/close case.

    There's a time and place for being sweet and conservative, and it ain't with FOUNDERS!

  • An
      24th of Mar, 2010
    0 Votes

    I can't believe what I am reading!!! Well, then again yes I can!!! Anybody having problems with this insurance company can take them to small claims court or contact your Insurance commissioner!!! Don't let this company get away with all these terrible things!! I"M NOT!!!

  • Di
      29th of Jun, 2010
    0 Votes

    I'm pretty sour on Founders Insurance right now myself. I was struck at an intersection by a guy who disobeyed a traffic signal, admitted it and was ticketed. They want to total my car as well. Their value is just a few hundred dollars off the repair. $6500 estimated to repair, value KBB $7-8k NADA shows $5, 500. I JUST BOUGHT the dang car, I've $6200 in it and can verify that. ---

    I've also been a month without any car. I was originally told that Founders Insurance could not provide a vehicle until the driver was verified... and that took them 3+ weeks. Now they will offer me up to (get this) $29.00/day for a rental car. I checked, I can't rent a decent BICYCLE for that amount. They will only pay that until I receive the official offer from their total-loss dept. which could be in a few hours, or a few days. Who knows? --

    ONE TIME, only ONE TIME has Founders Insurance ever initiated contact with me. I've called them every time. Most of the time, they won't answer the phone. That's what Voicemail is for, huh. I also had to hunt down the local agent and persuade him to light a fire under Founders Insurance corporate office. I don't know what he said but that made things start to happen. --

    In contrast, Allstate has called me countless times, while their offer of a total loss was no better, it was at least on my desk in a few days and they have been exceptionally professional and helpful at every turn.

    I see these Founders people as a joke of the insurance world and I'm sure this will be a long drawn out affair. I'm sure lawyers will be involved and I'll still end up with the short end of the stick. I really feel like I'm getting screwed and once again, there's little I can do about it. My advice to YOU is to stay away from Founders Insurance if at all possible.

  • Ri
      17th of Jan, 2011
    0 Votes

    I was hit by a founder insurance person broke my elbow it's been almost a year the adjuster said I could not prove my case even thought the girl call them she was on her cell phone when I was hit

  • Fo
      18th of Jan, 2011
    0 Votes

    Trust me I am going through with a claim against Founders which should be changed to Flounders because they're a joke. The insured from oncoming traffic made a left hand turn right in front of my motorcycle and after 2 months with my attorney working on this case, Founders offered 75% of liability and said I was 25% at fault?!! WT[censored] The other driver recieved 2 tickets for Failure to yield when turning and driving while license suspended and plead guilty to both tickets!! Also I sustained injuries from this accident and I have full coverage from my insurance and they're fixing the bike and will pay for my loss and suffering and they will go after Founders along with my attorney so Founders this time people aren't going to take this one lying down!!! You guys will pay for all damages!!!

  • Ra
      16th of Sep, 2011
    0 Votes

    I just got hit from behind and myself and the 7 cars in front of me in the left hand turn lane all stopped somewhat abruptly, well the car behind me did not. Founders says I am 25% liable for the accident... why cause I can stop my car. Screwed again seems to be the norm so I have read.

  • Mz
      5th of Dec, 2012
    0 Votes

    This is the worst insurance company that has ever been in business. I had my kids in the car when we were rear-ended by an idiot customer of Founders. I was sitting still when he hit me going 55 mph. It was even witnessed by local law enforcement. This was on December 7, 2007. There was $10, 000 damage done to my car. It ripped the gas tank completely out from under the car. I had to rent a car because mine was obviously not drivable. Founders wouldn't cover the rental fees ($35 per day) because they told me that they didn't decide it was their client's fault until Dec 28. I finally had to file with my own insurance to get the car taken care of and pay my deductible. I was worth it to just get my own car back. My insurance company had to sue Founders to get their money back for paying my claim. It took 2 years to get my deductible back. My kids still suffer from injuries caused by the accident and I am told that "Founders does not pay for pain and suffering". I don't know how the people that work there live with themselves. I could never be paid enough to treat innocent people that way. So, if you have been hit by someone with Founder for their insurance company, consider yourself screwed.

  • Mi
      22nd of Mar, 2013
    +1 Votes

    I've been dealing with a claim against Founders for roughly 15 months. My car was totaled by one of their clients, when she decided to get drunk and rear end me while I was completely stopped at a red light.

    * For the first two months, Founders repeatedly "lost" the police report number, and thus was unable to start processing the claim
    * Then, for an additional eleven months, they claimed that they couldn't get in contact with the other driver, and that they needed some critical information from her before they could determine whether or not she was insured at the time (seems like Founders should know this??)
    * Now, they're in the process of making several low-ball "settlement offers" that are well below the KBB value for my car. I expect that this will continue for months if past is prologue.

    The only advice I can offer those who are also dealing with founders is to take their complaints to the Better Business Bureau as soon as possible. When I started dealing with Founders, they had an "F" rating and now they somehow have an "A+". They're very eager to defend this rating, and filing complaints that threaten it will get you a response of some sort.

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