by Guest » Mon Aug 13, 2012 08:14 pm
My allstate office called me up and offered to switch me to a new policy. We would save about 30% if we went to a new policy without the cancelable feature. All the other coverage would remain exactly the same. I guess this feature prevents them from dropping us if we get into an accident.
Both policies are Allstate...the new one is Allstate Fire and Casualty. The old one he said was AIC / Allstate.
My wife and I have good driving records and she was in an accident about 14 years ago last. We're talking about $600 a year savings.
Are there any other caveats to going to this new policy?
Thanks
Both policies are Allstate...the new one is Allstate Fire and Casualty. The old one he said was AIC / Allstate.
My wife and I have good driving records and she was in an accident about 14 years ago last. We're talking about $600 a year savings.
Are there any other caveats to going to this new policy?
Thanks
Posted: Tue Aug 14, 2012 12:23 am Post Subject:
It does not prevent them from dropping you, as they cannot do that anyway. It means that _you_ cannot cancel your policy with them. You'd need to keep paying them until your policy expired.
Posted: Tue Aug 14, 2012 01:38 pm Post Subject:
Thanks for the clarification. I was very busy at work when he called and I guess wasn't fully listening to him.
Posted: Tue Aug 14, 2012 05:51 pm Post Subject: Cancellation and renewability
Just wanted to share information with you all. Cancellation and renewability are the two terms gonna make you count few extra bucks on your premiums. Renewability means that the insurance policy given is one that can be renewed again and non-cancellation provision in the policy means that the insurance company cannot cancel coverage due to any illness but only in the context of non-payment of premium. [Link removed per TOU]
Posted: Wed Aug 15, 2012 04:17 am Post Subject:
No one EVER gets "noncancellable" auto insurance. A "noncancellable" policy must be renewed if the premium is paid, but the premium cannot be changed. No auto insurance company wants to be in that position.
I was very busy at work when he called and I guess wasn't fully listening to him.
Although I didn't hear the conversation, I would be willing to bet you heard and remembered everything the agent said. He probably failed to mention the importance of the cancellable policy provision in your current policy compared to the new contract without a cancellation provision.
More and more insurance companies are sneaking this into their contracts. You find a lower premium somewhere else and cancel before the end of the term. Used to happen all the time. Now, if you do that, you are just as likely to get a bill for unpaid premiums, even though you no longer are an insured.
"What's up with that?" you might say. Well, you just didn't read the part of the contract that says you agree to pay all the premiums for the duration of the contract, whether you maintain the coverage or not. Ouch!
Posted: Wed Aug 15, 2012 01:18 pm Post Subject:
Thank you all for the replies. We've had this policy for about 10 years...so I guess the new ones they don't offer this provision anymore.
What tcoupe and Max said makes sense... He worded it that it was something that if we got into accidents (for example, our 20 year old daughter), we could be cancelled. He stated people with young drivers might not take the new policy. He said other that that, that was the only difference with my policy with this grandfather clause over the new policy 30% cheaper.
Posted: Wed Aug 15, 2012 01:48 pm Post Subject:
Ask your agent for a copy of the new policy language compared to your existing policy and send it to me. I will read and translate it for you. It may be OK to accept the newer policy, or not.
Your agent may be in line for some kind of bonus for converting older policies to newer ones, or he may be trying to save you both money and aggravation. Or anything in between.
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