In this report are details of how Allstate: 1) scams the public on the internet through multiple websites, 2) offered me a false low rate and got me to sign up, 3) 2-3 months later did a bait and switch and raised my rates with no valid reasons, 4) checked my credit file when I was specifically told it would not happen, 5) ignored the requests for a valid explanation, 6) only really responded after I reported them to the insurance commissioner, and 7) turned me over to a collection agency.
Also contained are, or will be: 1) various emails of me going off on Allstate, 2) emails requesting information from Allstate, 3) letters to the attorney general and the insurance commissioner's office, 4) Allstate's excuse that they never received any of the emails, 5) a letter from the insurance commissioner, 6) a response from Allstate, and 7) emails to and from Safeco.
Other information will be added as I retrieve it from my email history and data archive. (I keep everything I ever wrote, sent or received. You never know when you might need it in the future. Just like this.)
The moral of this story, as best said by the rap group Public Enemy: "Don't believe the hype."
In May I went shopping online for new auto insurance. After taking more than 12 hours total over 2 days to fill out requests on all these different "companies'" websites (I was really shopping), I found that the bulk of the sales leads were given to different Allstate reps.
Although I had provided exactly the same information to all of them, I received quotes varying by hundreds of dollars. The fact that I received so many from Allstate tells me that the 12 hours I thought I was "investing" to be a good consumer was a complete waste of time. After getting frustrated with that, I figured I would go with Allstate, since according to their marketing hype, "x many millions of people saved money by switching to Allstate!" They were going to save me a lot of money too!
So I picked an agent who seemed to give me a reasonable rate and seemed to have half a clue. I explained that I already had insurance with Safeco and had been with them for years. I explained that I have not had an accident or citation in like the last 10 years.
The agent provided me with a quote. He then asked for my social security number and insisted it was only to check the driving records, as that is how they are stored. I expressly stated that it was not to be used to check my credit reports, and he agreed, saying they do not use it for that purpose. In June I accepted the price quoted and purchased the insurance. My first bill was processed online June 25th.
(Note: every time someone inquires into your credit reports, they ding you for a couple of points. That is why I did not want them checking. I did not want them dragging my score down.)
In September, after a few months of insurance, I received a letter saying something to the effect of "because of information we found in your credit report, and because of information you failed to provide to us," they were raising my rates. (I will post a copy of the letter later.)
I wrote them several emails and demanded an explanation. I aggressively told them that if they did not have some information, it was they who had failed to ask for it, as I answered every question I was asked and even some I thought were completely unnecessary and intrusive.
I also explained that there is no negative information on my credit file, period. I am 38 and have an income of over $75,000 a year, and I pay my bills on time (all auto-drafted from my checking account). As I am very careful about my credit, I retrieve reports from all 3 bureaus at least once a year, and in many years 3 or more times a year.
So whatever excuse they have for raising my rates is unwarranted. In addition, what on earth does my credit report have to do with how much I am being charged for auto insurance? That makes no sense! My driving record should be the only factor considered. My personal finances have no bearing on whether I am a safe driver.
With the amount of increase they wanted to charge me for auto insurance, the rate would now actually be more than I had been spending for the past several years with Safeco. That is nothing more than a bait and switch. I immediately wrote an email to Safeco explaining the entire situation (that I left for a cheap "date"), begged their forgiveness (like the prodigal son) and asked if I could come back to the family, fully expecting to have to pay some type of penalty.
Safeco called me on the phone within hours. The wonderful person I talked to at Safeco looked up my previous account and told me no problem, and in fact reduced my rate from what I was previously paying to even below what Allstate quoted me for their initial insurance cost.
I wrote to my Allstate agent and instructed them that I was canceling, I wrote their corporate office an email and told them I was canceling, and I wrote to the state attorney general's office / insurance commissioner and reported Allstate. Only after I got a response from the state did Allstate's corporate office bother to return contact, and then it was nothing more than damage control to appease the state. Even then, I informed them that I had switched back to Safeco. That was all in September.
Today, January 26th, I got a call on my cell phone (voicemail). There was no introduction or announcement of who they were, just a phone number and a "file number," and they said to call them. I called them back and found out it is a collection agency. Allstate turned me in for collections for money they said I owe them for insurance services after I had canceled my policy with them.
Allstate gave the collections company an old address that I had not lived at for more than 4 years and my cell phone number, but failed to provide them with my multiple email addresses, work information or current address. I informed the collections rep (in a very nice way, since it is not her fault that Allstate is a scam company) that if Allstate wanted to get in touch with me to tell me I owe them something, they have more than 7 ways of contacting me other than a physical postal address.
The collections rep says that in order for me to "dispute" the account, I have to provide proof of insurance as of October of last year, since Indiana is a mandatory insurance state. Basically, she is saying that if I did not have insurance, then I owed Allstate the money regardless of whether I canceled. What does my proof of insurance with another company have to do with the fact that I canceled my insurance with Allstate? Why does Allstate think I owe them more money?
The collections rep was nice, but she obviously was told by Allstate to go get more money and was not given all of the facts.
Now I have to be concerned that this will show up on my otherwise spotless credit reports, I have to jump through flaming hoops to "prove" that I do not owe anything (I thought our legal system was set up to be innocent until proven guilty), and I have to waste more time with Allstate over this matter.
I will write more updates as they become available.
The moral of this story, as far as anyone getting insurance with Allstate, as best said by the rap group Public Enemy: "Don't believe the hype."
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