Surge in Auto Claims Dampens Allstate Q4 Profit

By | February 4, 2016

  • February 4, 2016 at 1:29 pm
    upset insured says:
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    I have been an Allstate customer for 20 years. Last year after a single accident(the first claim in ten years) with less than $1500 total damage, Allstate raised my annual premium over $500. Contacting my agent to understand the increase, they were reluctant to state there was an overall increase in everyone’s rate due to storm payouts…… if they increase rates again I will be move to another carrier!

    • February 4, 2016 at 2:54 pm
      Agent says:
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      upset, I guess you weren’t in such good hands after all, were you? I can’t tell you how many shenanigans I have seen over the years by Allstate. By the way, I haven’t seen any of those commercials saving customers $496 per year on Auto lately.

    • February 4, 2016 at 2:58 pm
      TNReader says:
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      Your experience is why when my wife backed into a column in a parking garage and did $2,000 of damage, with a $1,000 deductible, I just paid for the repair.

      • February 4, 2016 at 4:15 pm
        Agent says:
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        My advice is to get coverage through a good Independent Agent who represents 5 or 6 good markets and get away from the Captive company who has nowhere else to go so either accept the rate increase or leave.

      • February 8, 2016 at 4:53 pm
        Agent says:
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        TN, one of my CSR’s had an accident when a deer jumped out in front of her when she was on the way to work. She was driving one of those bug eyed Nissan Jukes and it nearly totaled that little car. If it hadn’t been so new, they probably would have. $8,900 in damage. Car insurers are finding repairs are very expensive even if it is only PD and especially with foreign cars where the parts are so expensive.

    • February 4, 2016 at 3:12 pm
      Hang on, upset says:
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      That $500 increase will last for two more years!

    • February 4, 2016 at 6:16 pm
      SWFL Agent says:
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      Upset, I’m a little surprised you would even consider staying with Allstate.

  • February 4, 2016 at 3:35 pm
    MeIsEinstein says:
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    It appears that “Mayhem” is affecting Allstate.

    • February 4, 2016 at 4:12 pm
      Agent says:
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      Mel, one of my marketing reps from our largest company said that many of her agents tell her horror stories of seeing Allstate cutting coverage out of their Homeowners, raising deductibles, using the most plain vanilla forms without water leakage, foundation coverage and ACV on roofs in their quest to sell price. They also sell a lot of minimum limit Auto, No U/M, no PIP to sell a price. Apparently, they have never heard of first accident forgiveness either for long term good customers.

  • February 8, 2016 at 2:05 pm
    Tyler says:
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    I completely understand the frustration here. However, being a captive agent myself, I would argue that the consumer should make sure he/she is doing business with an ethical agent. If you policy is not reviewed at the time of purchase then something is fishy. Insurance is a necessary evil, but if the policy is written in a professional and ethical manner then it will undoubtedly work to the consumer’s benefit. I encourage you all to find a well qualified agent that will make sure you are covered and climb the chain of command in the event of a claim dispute.
    All insurance companies are known for their vague and ambiguous policy provisions. Make sure your agent is a professional in the industry and know what you are spending your hard earned money on.

    • February 8, 2016 at 3:59 pm
      Agent says:
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      Tyler, it sounds like you are an ethical agent so I wish you well. It has to be tough to be a one market agent in today’s world and tied down by contract. FFA broke away some years ago to be Independent and has not looked back.



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