Allstate Insurance Company, also known as Allstate Property and Casualty Insurance Company, punishes customers who were already victimized. There is no difference between fault and no-fault accidents.
I am a foreigner from Germany. In my country, my insurance rate used to go down with each year without a claim. For about $1,000,000 of coverage, I used to pay a premium of $200 annually. In this country the rate usually goes up 25% every year without any claim, and the coverage is $15,000/30,000 with a premium 4 times higher.
That's not all. I requested a quote from Allstate, and they sent me a quote of $137.30 for 6 months. When I called them to accept the offer, they told me, "This is going to change a little bit because of a no-fault accident you had in 1999." That "little bit" was about 70%, from $137.30 to $241. I could not believe what I had heard. A drunken truck driver with an unregistered gravel dumpster with broken brakes and defective steering rear-ends me, totals my car, and almost kills me, and then my insurance premium goes up by 70% as if I had caused this.
I called the AZ Dept. of Insurance, and they told me that this is legal because it does not matter whether it was a fault or no-fault accident, since I made a claim. Insurance companies evaluate risks and adjust the premium accordingly, so these practices obviously try to express that a person who was once at the wrong place at the wrong time is going to "do it" again and means a higher risk for insurance companies. If some voodoo sorcerer came up with this theory, I would definitely believe him, but it looks strange to me that insurance professionals who know about statistics come up with nonsense like that.
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