Founders Insurance Companyhighly questionable business practices

Review updated:

Founders Insurance Co.
1645 Birchwood Ave.
P.O. Box 5100
Des Plaines, IL 60018

On the evening of Friday, September 9, 2007 in a parking lot in Elgin, IL., a vehicle insured by the above insurance company struck our parked van and fled the scene. Including myself, there are two eye witnesses to the accident. The license plate of the offending vehicle was recorded and immediately reported to the police. Within minutes, the Elgin, IL Police Dept. tracked the plate down to a nearby residence where they discovered the vehicle parked in the owners' driveway. Upon further investigation by the police, they talked to the passenger of the offending vehicle who was at that residence and he admitted to being in the vehicle at the time the driver backed into our car and drove away. However, he claimed he only knew the drivers name as "Jesus" and that he had left minutes before. The police also discovered that the registered owner has a suspended drivers license. Neither myself nor the other eye witness could identify who was driving the vehicle that struck ours.

We reported the incident to Christina Kane at the above insurance agency when they opened on Monday 9/12/2007 and filed a claim to repair the damages caused by their insured clients' vehicle. The above insurance agency had requested copies of the police report and a letter stating the events of the accident. This alone is odd because any insurance agency can obtain police reports of their insured themselves. Later, they had also sent us a Founders Insurance form to fill out that resembled a police report. Some of the information they requested was our Social Security number, our insurance policy number, our coverage type, our deductable and where we worked. Needless to say, we did not give them that information as they have absolutely no relevant need for it. We have taken our vehicle to the body shop that Founders Insurance Co. suggested for an estimate. The recommended body shop seemed shady and had a large calendar with scantly clad women hanging in plain sight of the customers. I will say that my wife was uncomfortable with the establishment.

It has been over three months and in excess of 10 phone calls have been placed to Founders Insurance Co. checking on the status of the claim. When they actually returned our calls, each response has been that "they are still investigating it and can not reach the owner". To this date, absolutely nothing had been done to pay for the damages caused by their clients' vehicle. We have also filed a complaint with the BBB, The Illinois Division of Insurance and Professional Regulations, and the Des Plaines, IL. Chamber of Commerce.

It is in our opinion that Founders Insurance Co. is clearly avoiding paying a claim in their hopes that we would have our highly reputable insurance company take care of it. Regardless of who was driving the vehicle, the fact of the matter is that the vehicle that Founders Insurance Company insured, struck our parked vehicle in plain view of two separate witnesses and fled the scene. This form of business practice is fraudulent as far as I am concerned and should be eradicated from the insurance business.


  • Je
    Jeff Mar 19, 2008

    What this person, and many others don't realize about auto insurance is that just because there is a valid policy in force for a particular vehicle or a particular driver that does not neccessarily mean that there is coverage for a loss. In the above loss it appears that the company was unable to determine the driver of the vehicle. This is a very important detail that must not be overlooked just because you would like your car fixed immediatly. Lets suppose that the vehicle was taken without permission or the person driving the vehicle did not have a valid drivers license. In those cases, there would be no coverage under almost all auto insurance policies. If you have full coverage on your own vehicles then you do not have wait for the other driver's insurance company to pay for your damages. It seems that some people are so stubborn that they would rather be unhappy and pissed off rather than just let their own company do what you pay them to do, handle your claim.

    -3 Votes
  • Jo
    Joe Apr 03, 2008

    As the previous commenter had stated most people are ignorant to the actual practices of insurance. Coverage is a very important factor in a claim. No one disputed that someone hit their car however they were offended the claim wasn't resolved within a few days. Unfortunately coverage takes precedents over any liability scenarios. Second it seems a bit childish to complain about an accident report form. Fill out what you want. It is important that an insurance company gets as much information as possible on every claim. Not all parties contact an insurance company promptly by phone and this is an alternative way to put a stake in the claim. Also every insurance company orders a police report and the report the officer gives you is not the official report as most people would ignorantly think. The officers are supposed to write a narrative and draw a depiction of the events on the reverse side of the owner/operator information. If you can receive the police report before the insurance company can then it may expedite your claim. However taking this as a personal assault and as a "fraudulant practice" shows consumer ignorance. Fraud is a material misrepresentation so please use it in a proper manner and control your emotions in a business transaction. If you have your own full coverage it is your right to take advantage of it, however if you choose to utilizes someones liablity coverage you will need to be patient and follow the rules that are laid out.

    -3 Votes
  • Je
    Jessica Apr 24, 2008

    My insurance company is founders and when I was struck by a drunk driver they handled everything well

    0 Votes
  • Ri
    Rich K. Jun 15, 2008

    Past performances speak volumes. I personally have spoken to 3 separate individuals whom have had such lovely experiences with Founders Insurance Co. denying or prolonging claims. One of which was a right of way bicyclist that was struck by a paper delivery driver - claim denied. Resolving claims in days? Try unresolved claims in 7 months and unreturned phone calls. Is this to be considered the "proper manner"? Having given up on this "insurance" company, our insurance company indeed resolved our matter in days and has since followed up on legal matters with Founders Insurance Co. Some of the prior posts seemed to just not get the point then it is titled "highly questionable business practices". With the inception of the manditory insurance law, these very types of companies have sprang up over night to provide "insurance" to individuals that could not afford or be approved by more reputable ones. Sure, it provides the owner cheap insurance. So cheap that it costs everyone else! Put yourself in the same situation and we'll see just how childish you become.

    2 Votes
  • Wp
    wpcm Aug 07, 2008

    Appears the previous poster clearly doesn't understand insurance either. When someone is delivering papers they are doing so for a business. EVERY policy regardless of State Farm, The Hartford, Allstate, or Founders insurance has a clause/exclusion in regards to doing business. Obviously other insurance would come first as a comercial liability policy should be in force. Unfortunately you did not read your policy. That is coverage not liability. Coverage is saying that no exclusion within a policy were met. Liability is placing fault on one or more party based on the facts of loss. Your highly questionable knowledge does not make you a professional. I can tell you of numerous people who have dealed with non-standard companies and everything works out fine. If you are going through someone else policy you must abide by their practices. You are not their policy holder so they are not obligate to meet your needs until a time when they have enough pertinent documents to make a decision.

    -2 Votes
  • As
    Ascher Levy Nov 20, 2008

    Founder's Insurance engages in fraudlent practices. I was hit by a driver covered by Founder's. He was entirely at fault, attempting to make a left turn from the right lane and plowing into th3e side of my car in doing so. After dodging my calls for weeks, the adjuster from Founder's, Fabian Martinez, said they would only offer to pay part of the damage, citing false claims about what actual happened which he attributed to the other driver. When I called the other driver to complain, he said the agent told him to say this so they would not be as responsible. I've filed a complaint with the Illinois Attorney General and my company, who has always doen right by me, State Farm, is going after Founder's for the money.

    2 Votes
  • Wp
    wpcm Dec 04, 2008

    Again the previous poster really has no knowledge or real understanding on how insurance works and more importantly what kind of insurance state Illinois is. Illinois is a 51% comparative state, meaning that you have to be less than 51% at fault for an accident to collect from the other party. That aside, you must also realize every driver has certain duties on the road. During an accident many times everyone has some blame regardless of what insurance you have. Also, since Founders Insurance Company is not your insurance comapny they are not obligated to please you or pay out 100% of your claim. State Farm is your insurance company so they are obligated by a contractual agreement to pay your claim. Once paid they will subrogate, and most likely receive the same offer you were given. If they so choose to file suit then they will get to the litigation department and deal with them. Frustration does not equal knowledge. If you have comp and collision it is always easier to use your insurance company. After all, that is why you pay them is it not?

    -2 Votes
  • Fo
    Founders blows Feb 16, 2009

    I have nothing but contempt for this company. They have not responded to me and took 2 months to finally send out someone for an estimate on my vehicle. God help you if you are in an accident with this company.

    2 Votes
  • Be
    Beth29 Jul 28, 2009

    Clearly Joe works for Founders. I am very familiar with claims practices as I work as a supervisor for a reputable carrier's claims dept. Calling people who aren't familiar with insurance lingo "ignorant" is your only defense here. State the rules and whatever for each state, but that doesn't negate the fact that Founders is notorious for prolonging their claims. Ask your local body shop who they HATE to work with and you'll get a whole slew of names, including Founders, Afirrmative, American Access and a few others. They are high risk carriers which means nearly anyone insured with them is someone who has lots of tickets, DUIs, OWIs or history of driving without insurance, so these are the types of people you'll be dealing with and pretty sure they aren't going to be super excited about giving their statements to their adjuster if their phone # and address haven't already changed since the inception of their policy. For our adjusters, if our insured doesn't make their statement in a reasonable amount of time (usually 10 days) our adjusters will send a letter advising them that they are going to make a liability decision without their statement base on the claimant's statements and any other evidence they have. The way we look at it, any claimant is a potential client so we treat them all well. We get numerous new clients based on the service they received as our claimant. Bet Founders can't say that. And if the driver didn't have permission to drive the vehicle then any intelligent owner of a vehicle would not only be willing to give their statement to clear their own name but they would report their vehicle stolen to the police. We don't allow someone to use the whole "non-permissive user" loop hole without reporting it stolen to the police and once they do that, if they're lying, it's a crime to make a false police report and we let the prosecuting atty take it from there. Be sure to have uninsured/underinsured motorist coverage and I always recommend to carry full coverage on your vehicle no matter how old it is so if you're in an accident with a Founders insured or any high risk insured, you may have to pay your deductible initially but at least your company can file a subrogation claim against the other party and get your deductible back.

    2 Votes
  • Ri
    Rich K. Sep 22, 2009

    On a follow up to this disgraceful company, they refused to pay any claim while finding a loophole in the system.

    Should our lovely politicians decide that everyone must have mandatory healthcare, mark my word, you will see healthcare insurance companies conducting business just like Founders does. Take heed Americans!



    3 Votes
  • My
    my baboo Jul 10, 2010

    As to Mr.Rich K.your statement that everyone that uses Founders Insurance is a high risk driver who's had countless DUIs and tickets out the wozoo and any other bad thing you can think of is tottally UNTRUE thankyou very much. I have Founders thankgosh I have never had an accident or anything but you have been telling people everything they are wrong about so heres one your wrong about. Not everyone who has Founders is high risk but is cheap so people that don't have a lot of money for good insurance at least they are makeing sure they are legal.

    0 Votes
  • Tr
    truth005 Aug 17, 2010

    from my experiance, I am also struggling with him. This is worst of the worst company to deal with. I made almost 10 calls...still there are no updates. They have highly corrupt business practices and denying my claims straight. one of the founder's insurer hit my car and also driver is accepting the responsibility. Founder Insurance Drive is speaking the truth but company is asking the driver to change the statements. I did the conference call with all the parties involved but founders is delaying everything and ready to deny the case.

    Shame on YOU Founders !!!

    0 Votes
  • Ca
    candice h. Jan 27, 2011

    I'm currently dealing with the same issues, with founders, what a shame can't believe founders are still in business. Founders Insurance co, are horrible liers, a different lie, every time you call them, I'm very upset with founders, i will be taking action against founders.

    0 Votes
  • Wa
    wayne jerdon Aug 01, 2012

    I also am having all kinds of problems with these ###s, First thing my car parked legally in a parking spot in the side of the road is hit by a women doing 50 in a 30 smashes it into the Ford F150 in front of mine making it about 4 feet smaller and moving both car's about 3 feet forward. Women gets out says she just got her licence back about 3 weeks previous and looks either drugged or drunk claim its hypoglycemia still should not have been driving. This all happens on a Sat police report will not be available till the following Thursday I get report fax it to my company who was gonna get in touch with founders for me they did not get any response i got ahold of them on Monday they Refused to pay the storage fees on the impound which was the first of my many complaints about these people it took 14 days for them to finally send me a check for 250 of the total which includes 3 days only of storage and the tow and clean up fee leaving me with the rest which by the time i got the check 5 days later was around 600 bucks Lucky for me the guy at the impound knew of founders being unreliable so he "froze" my account at 450 a few days after i first had problems with them saying if your gonna have to pay it i wont screw you over they deem the car total loss now im getting to deal with the problem of them saying my car was worth 1175 which for my car if im to replace it with a like model year engine quality ect will be around 2000 at the least. They claim its not their responsibility to replace my car just give me what its worth when i asked where they got this number they said it was taking from local sources as if they were trying to buy a car like that in my area but I could not do the same because when i did i came up with the 2000 bucks im at my wits end how are these people still in business not to mention EVERY time i call no answer they gotta email me or i wait for them to call me back and they are Rude Every time.

    0 Votes
  • De
    Deezie99 Jun 24, 2013

    I'm insured with Founders & they are complete a**holes. I am looking for good & affordable insurance asap. It has taken them a month in a half to give me the ok to take my vehicle to the shop, now it's there & I can't get it because they haven't released the check. Saying that they need more pictures because the 2 different sets I've already sent at the start of my claim aren't sufficient enough. When you call them it takes days sometimes a week or so before you get your adjuster. The claims representatives are rude & very not helpful. Not to mention I have rental car coverage as well & was told I would have to pay & be reimbursed. This is the most ridiculous company ever. DO NOT GET INSURED BY THEM!!! U well regret it, because inexpensive isn't always good.

    0 Votes
  • Mc
    mctappy Oct 30, 2013

    My daughter was rear ended by a young girl with Founders. The girl was texting and hit my daughter at a high rate of speed with no braking skid marks. My daughter's car was totaled. State Farm took care of everything for my daughter, even returning her deductable. Of course, 20 months later, State Farm is suing Founders for not reimbursting them. My daughter is seeing a lawyer Monday, because she has never been able to get in touch with them since. They contacted her, and once she would not sign off with them, and wanted payment for rental car fees and missed work due to injuries, no further contact. No matter how many times she left messages or emailed them, no response from Founders. This tactic must work with a lot of people that file claims against them. They play a waiting game until your time has run out to file. Founder Insurance is a evil, unscrupulous company.

    0 Votes
  • Wr
    Wrong Cookie Feb 19, 2014

    I just recently had a accident with insurer who was insured by founders insurance on December 23, 2013. The lady T boned hit me and I was on the road first and she made a right turn into my lane without looking first and hit me. I have been battling it out with founders insurance for the last 2 months and they are only wanting to pay for 50% claiming that I was at fault for the other 50% but will not tell me how I was at fault. The police report stated who was at fault based on evidence and Founders said that the police report was inaccurate based on their insured. To make matters worse on Founders claim form they they asked their insured to draw a picture on the accident and clearly based on THEIR insured drawing she painted a crystal clear picture showing she was at fault. I m sure Stevie Wonder could have seen it for himself. Founders is a deceitful company and are liars. I bet you one thing the people who work for them don't have founders. Founders has messed with the wrong cookie and I tell you what a CLASS ACTION lawsuit against Founders Insurance Company will be coming into affect in the Days to come. If your insured is at fault for hitting a person they should investigate and take proper procedure in ensuring everything gets handled in a timely fashion. People should not resort to contacting the Department of Insurance most of all going through the hassle of not being mobile getting a rent a car to only find out they are going to pay half of it and just drama and its self. Founders Insurance is goign DOWN!!!

    -1 Votes
  • Po
    Poor Company Aug 14, 2014

    I realize people purchase the insurance they can afford but this company should not be in business. One of their clients hit me and they refused to pay for all of the damage. They will nickle and dime you to death. Also, If there is a Class Action lawsuit I'd be glad to join it. Their customer service is poor. Agents never return calls and I assume people work there just because its a job!!!

    Also, be forewarned about the insurance industry in Illinois. There are lots of loopholes these companies find to avoid paying. One lady's car was totaled and because she could never get in contact with the person who hit her they didn't have an obligation to pay!!! This is for people with liability only. Ask your agent.

    0 Votes
  • Je
    Jeff Ruebensaal Mar 23, 2015

    I was struck from behind while in my parked car and forced into another parked car by a driver with Founders insurance. Founders answers no phone calls always voicemail. They do claim responsibility. 33 days later all I have is an unfair offer for the value of my car. No rental car at all or cash out on rental. No reimbursement for towing vehicle from the scene. They won't provide a declaration of benefits. Moreover they want to charge me $1000 to dispose of the scrappile that litters up my yard. Pray you're never hit by a Founders insured. Their answer to everything is "You can just urn it in to your insurance company" complaint to be filed with Ohio Bureau of insurance.

    0 Votes
  • Kr
    Krazy Kane Jul 24, 2015

    Me and my wife brought a 2002 Chrysler 300m as soon as we had got our taxes. We decide listening to a friend because she said she been involved with them for 10years and was treated rite by them. So out of good faith we went ahead and gave them a try. Neediness to say that that was the worst mistake i made. On 6-9-2015 at 3:39am i was woked up by Peoria police put and handcuffs telling me i was involved in a hit n run. I was like then how was i involved when i was sleeping at the time and my car was park in front of my house. Well when i got that cleared up i reported it to founder and keep in mind we had full coverage so i really wasn't mad intill founders gave me a call telling me they ain't going to pay and they are just going to give my refund back and i was like the f***if you r. I put and as well a class action as well. Don't not go to founders they are no good

    1 Votes
  • Xi
    Xiomi Oct 29, 2015

    I agree with all the complaints because it happened to my husband Founders is a scam trying to get away from paying the claims. I filed a complaint with Illinois Department of Insurance and was not successful, don't trust them, I had to hire an Attorney but he is hesitating to get the case, due to Founders have lots of powerful people in the State that will cover for them.

    We all need to do something about these scammers out there. Not sure where Justice is, but if anyone out there knows of anyone that can help please submit a post.

    I trust in God and I know that his Justice is better that ours.

    0 Votes
  • Mi
    Mike McGinnis Jan 05, 2016

    I've dealt with these people for close to a year now over damage to my property. I've submitted photos and police reports also..After numerous calls to the company I got the run around and excuse after excuse of why they haven't paid their claim. Now after more calls they say they've mailed the compensation check..After two weeks of not receiving a check and blaming it on the post office for a busy season, I can't wait for next excuse...I've documented every phone call and person I've talked with, I guess it's time to pursue legal action...shame on you should change your name to flounders insurance because things are truly fishy dealing with you people...

    0 Votes
  • Xi
    Xiomi Jan 06, 2016

    That's the way to go, I had to do the same thing my attorney is Handling it well.

    0 Votes
  • Ro
    Roxanne Dimacale May 10, 2016

    Savvy suggestions ! For my two cents, if anyone is interested a a form, my business used a fillable document here

    0 Votes
  • Ta
    Tay Cole Oct 15, 2018

    I have called 20 times and still no answer... ...Can you guys ...
    ... stupid answer the phone ... why does it have to be so long in order for you to read it...

    0 Votes

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