Thursday, June 07, 2007

$crew All$tate

Does anybody keep up with their insurance costs? I wish I had the time. Especially now.

I was jarred into doing so when I received a letter from my mortgage company saying that unless we made up our escrow shortage, our payments would be going up about $150 per month. Perplexed at the cause of such a shortage, I started going over the details of the account and discovered that our homeowner's insurance went up by 50% this year.

We had a claim in December. Our golf clubs were stolen out of our garage. But 50%? Nuh uh.

I called our agent, who sounded just as appalled as I was on the phone. He hung up to do some research and when he called back, explained that we were being assessed a claim surcharge. Yes, you read that right. And the surcharge was to remain on our account for 3 years. I tried to get our agent to explain to me why we in fact had insurance and shouldn't just be putting money aside to cover our own claims, and he came up with no good answer.

So I put it to him straight. Fix this or we walk. He called me out, saying that we'd get high rates elsewhere because we'd had 2 claims in 3 years.

Knowing an agent's game, I checked around. The first place that came to mind was the company with the commercials that have inspired a sitcom. And what do you know - the rate I was quoted was, drumroll please.................. 25% lower than my rate with All$tate before the surcharge! I was sold.

This prompted me to check into auto insurance rates as well. Thanks to Costco, we're now saving 50% and we even get towing and rental car coverage, which All$tate was not giving us.

I'm waiting to cancel with the extortionists until I get my policy paperwork in the mail. I'm anticipating that phone call like a night of good sex. :)

Moral of the story: never stay complacent when it comes to insurance companies. They'll screw you any way they can.


Tanya Espanya said...

Insurance companies are like the big banks...they're vultures. Good for you for calling around, I love to hear stories like that! Those cheating stealers!

chelene said...

Allstate is the WORST! When I first got a car I signed up with them because...well, it's Allstate. After a few years of rising rates (I never had an accident) I switched to Geico and paid a lot less. I wouldn't use Allstate if they paid me!

Slave to the dogs said...

Tanya - they are E*V*I*L. The sad thing is I never would have noticed or compared if it hadn't driven our mortgage payment up.

Chel - my grandparents used Allstate for many years, that's how I originally ended up with them. You'd think that being a long term customer would have helped but sadly that was not the case.

Sarah Ashlee said...

WOW! That is just ridiculous! Screw them and good for you for not taking it.

Slave to the dogs said...

Sarah - thanks! My only regret is that I didn't do it sooner.