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Allstate boots homeowners customers without auto policies

Posted January 3, 2012

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— Allstate Insurance is canceling more than 45,000 homeowners insurance policies statewide because the customers don't also have auto policies with the company.

The insurer informed the North Carolina Department of Insurance last year that it planned to decline renewal of 34,000 homeowners policies, 10,500 landlord package policies and 4,900 mobile home policies. Allstate told state regulators that the move was because none of the policies were bundled with a personal or commercial auto policy as of Dec. 15, 2010.

DOI spokeswoman Kerry Hall said other insurers have taken similar steps in recent years as they try to balance their underwriting between different segments of the market. Hall said the state doesn't regulate underwriting guidelines, so the cancellations are legal as long as policyholders are notified at least 30 days in advance.

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  • msmithua93 Jan 4, 2012

    I can tell you from experience, the folks who have decided to switch, almost ALWAYS save money due to the Multipolicy discount off BOTH policies. You have to remember that you get that on both. You also have to realize that other companies like Farm Bureau and others are following this same path. Its legal. Its fair. If you dont want to save money and have auto and home together, you dont have too...You just dont get the quality Service that SOME Allstate Agents give.

  • msmithua93 Jan 4, 2012

    Ok...think about it this way. They arent cancelling ANYONE who has an Auto Policy with their Home. Hmmm, that means you now get a Multipolicy discount on the Home AND the Auto which actually saves you money. So really..where is the bad? Think about it this way...Auto insurance claims paid out average less than $10k. Most people pay around $800 yearly for insurance. With the law of numbers, Auto Insurance can be VERY Profitable IF you have good drivers who dont have lots of claims. On the other hand...The average HomeOwners policy Annual Premium is about $700 per year. One fire in a $250k home would take over 350 policy premiums to recoup and break even...and thats not even thinking about the loss of use payments, loss of personal property, etc....

    All they are asking is...If we have to face the risk of losing money in the HomeOwners Market, We at least want to "lighten the fall by having your Auto Policy as well".

    Is this bad? Well basically they are saying..Take it or leave it.

  • davework Jan 4, 2012

    I had to fight with Allstate to give me fair value for my totaled vehicle after one of their policy holders hit me. I'll stay far away and highly recommend Erie to anyone that might be looking!

  • bubbba Jan 3, 2012

    Better off without them.

  • damos Jan 3, 2012

    Remember after Hurricane Andrew leveled half of Florida, and Allstate went in and was cancelling policies as fast as they could? I think there was some court action against them, but I know they got a lot of bad publicity. Too bad they have already forgotten what bad publicity does to a company. Time for all good customers to go elsewhere, again.

  • tjrj Jan 3, 2012

    Google 10 worst insurance companies in america . it might surprise you.

  • jmanarc Jan 3, 2012

    I AGREE WITH SOME OF THE OTHER COMMENTERS HERE!!! THE DOI SHOULD STEP IN OR ACTUALLY MAYBE THE COURTS SHOULD MAKE A RULING ON THIS--THIS TYPE OF PRACTICE DOES TAKE AWAY THE RIGHTS OF THE CONSUMER TO GET A BETTER PRICE ON THE INSURANCE THAT THEY NEED, THIS SOUNDS LIKE THEY ARE TRYING TO TAKE AWAY THE CONSUMERS RIGHT TO FAIR COMPETITION--I GUESS THEY WANT TO TRY TO MONOPOLIZE THE INSURANCE MARKET LATER!

  • jmanarc Jan 3, 2012

    ALLSTATE JUST WANTS TO TRY TO GET MORE MONEY FROM THEIR CURRENT CUSTOMERS. THEY ARE MAD THAT THEIR HOMEOWNER POLICYHOLDERS CAN GET A BETTER RATE ON THEIR CAR INSURANCE FROM SOMEONE ELSE. EVERYTIME I RENEW MY POLICY, I CHECK AROUND WITH THE DIFFERENT COMPANIES TO SEE IF i CAN SAVE SOME MONEY. WELL- ALLSTATE WAS ALWAYS ONE OF THE MOST EXPENSIVE ON BOTH HOMEOWNER AND CAR INSURANCE. NOT TO MENTION, ABOUT THREE YEARS AGO, AN ALLSTATE CAR POLICY HOLDER HIT THE SIDE OF MY VEHICLE BY MAKING AN ILLEGAL PASS AROUND MY VEHICLE AS I WAS MAKING A LEGAL, LEFT TURN INTO MY DRIVEWAY--WITH MY TURN SIGNAL ON. THEIR POLICYHOLDER WAS CHARGED AND FOUND TO BE AT FAULT BY THE HIGHWAY PATROL FOR PASSING IN A NO PASSING ZONE AND A SAFE MOVEMENT VIOLATION RESULTING IN PROPERTY DAMAGE TO ANOTHER VEHICLE. WELL ALLSTATE SAID IT WAS MY FAULT-BECAUSE I DID NOT LOOK BEHIND ME BEFORE I MADE A TURN INTO MY DRIVEWAY. THEY REFUSED TO PAY FOR MY TOTALLED VEHICLE AND I HAD TO TAKE THEM TO COURT TO GET MY MONEY.

  • dont12 Jan 3, 2012

    You're in good hands with Allstate. The hands are around your neck choking the life out of you!! Beware of companies like this!

  • RUSTYROVER Jan 3, 2012

    I see the "Good Hands" people washed their hands of the lower profit policies....sounds like its time to change to Erie insurance

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