My wife and I started our coverage with Allstate during April and cancelled our policy on 1 April. During this time we always paid our bill on time, usually in our agent's office.
When we started our policy, Allstate ran both of our credit reports and gave us a quote, which we accepted. My wife and I had both been driving for over 20 years at the time with no tickets or accidents. I had my first and only accident to date. Allstate adjusted my rate, which raised my payment by $24.00 a month. I didn't like it, but I figured I had to pay for my mistake.
In November 2005, while I was serving in S.W. Asia, I received a letter from my wife informing me that Allstate had almost doubled our premiums. It took a lot of work, but I managed to get some phone time to call Allstate. The rep I spoke with informed me that when Allstate renewed my policy, they ran a "periodic" credit check, and due to our credit scores we had been placed into a "high risk" category, which raised our premiums. I asked what derogatory information had been discovered, and the rep replied that she could not release it. I then asked how my credit score affected our driving habits and what we were at "high risk" of. The rep became irritated and stated that we were welcome to shop for other insurance if we didn't agree with their rates. I thanked the rep for informing me of the obvious and ended the call due to the time spent on the phone.
Needless to say, I started to worry about being a victim of identity theft. I also remembered that the U.S. had just had Hurricane Katrina, and I wondered how much money Allstate had lost to claims payments.
I returned home in February 2006 and reviewed credit reports from all three bureaus. I did not find any negative information that would justify a premium increase. Between April 2001 and November 2005, we had paid off a vehicle, sold a home, and purchased a new home and two new vehicles. Life was good. I called Allstate again, and the second call was no more constructive than the first. I found several insurers willing to give me coverage for less than what I was happily paying Allstate before the premium increase.
On March 10th, I sent Allstate an email through their website instructing them to cancel my policy at 12:01 am on 1 April 2006. I did not hear back from Allstate and did not pay my monthly bill for April, but I was satisfied that everything had been done.
On 10 April, I received a recorded message from Allstate informing me that my policy was past due and in danger of being canceled. I immediately called Allstate, and they told me they had not received my email and had not cancelled my policy as instructed. I told the rep to cancel my policy and that I would not be paying for any coverage provided after March 31st. The rep then told me that in order to back-date my cancellation to 1 April, I had to fax proof of my current insurance.
When I questioned the rep, his reply was that the law required me to have auto insurance. I thanked him for reminding me of the obvious and told him that Allstate was not a law enforcement agency, so they could take my word that I had current coverage. The rep's reply was to hang up on me. I took my paperwork to my agent and had him fax the required proof and cancel my policy.
Shortly after I cancelled my policy, Allstate sent me a "collection" bill for $14.30. I paid the bill and tracked my payment through my bank. My bank has posted my payment, and I have since received two more "collection" bills for $14.30 from Allstate.
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