Allstate Auto Insurance - upset about premium increase

Posted on Tuesday, November 5th, 2002 at 12:00am CST by 51348a97

Company: Allstate Auto Insurance - upset about premium increase

Category: Other received the following consumer message on November 3, 2002:

From: RE: Allstate Auto Insurance - upset about premium increase

To whom it may concern, I would like to file a complaint regarding the handling of my Car insurance through Allstate, policy number 910514396. I had been with Allstate for 6 years with no accidents, tickets or claims. A DUI was dropping off my record and I called my agent, Monte Owens, Kansas City MO., to see what sort of new premium I could get with Allstate so that I could compare with other insurance companies. Monte's assistant quoted me $260.94 over the phone and since I could not find anything cheaper, just a couple close e.g. 268.00, 295.00, I decided to stay with Allstate.

I received the declaration of insurance in the mail stating my coverage for July 20, 2002 through January 20, 2003 for $260.94. (Prior 6 month premium was $407.56) I paid my bill and thought everything was fine. On September, 30 2002 I received a letter from Allstate stating my premium has been increased by a total of $137.87 making the six month premium $392.81.

I called Mr. Owens, my insurance agent and he tells me that there were charges added to my policy since the insurance I was coming from was a "special" insurance. I asked why they can quote and bill me a premium then change it in the middle of the contract and he told me that is just the way it works. I then called Allstate customer service and talked with the Senior VIP, Joanne and she basically told me that the underwriters increased my premium and there is nothing that they can do about it.

As a consumer, I would like to know how I am to manage my money when I am quoted and billed a premium of $260.94 and then they can increase that at any time? I was able to get the same coverage through Liberty Mutual for $268.00. If I would have known this in July, I would not have decided to stay with Allstate. It seems to me that, if they quote and bill a premium that they should be bound to that "contact".

How else can I as a consumer make correct money decisions? I dropped my coverage with Allstate and am now with Liberty Mutual. I was covered for 88 days out of the 184 days with Allstate and of course they pro rated the refund check at the INCREASED premium amount that I had never agreed on e.g. $392.81 thus refunding me $73.17 instead of using the contract I paid and agreed upon for $260.94 pro rated for 88 days that would get me a refund check for around $135.00.

Since the customer service department at Allstate told me there is nothing that they can do and apparently the agents representing them are not their responsibility, I thought I should at least file this complaint about how my account was handled. It seems to me that insurance agents, when quoting and sending out declarations of insurance and billing, should have the tools available to them to accurately set these premiums. If this is not possible then I would at least think that it would take less than 70 days to find out an error in the premium.

Sincerely, Theodore A. Troll

15440 South Bradley Drive

Olathe, Kansas 66062


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