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Readers bite ‘Good Hands’ people

By Jay MacDonald · Bankrate.com
Friday, January 27, 2012
Posted: 10 am ET

My recent blog concerning Allstate's decision to drop 45,000 North Carolina customers who refused to "bundle" their homeowners and auto insurance policies with the company unleashed a firestorm of reader anger directed at the "Good Hands" people.

Here's a sampling:

Evan: To HECK with ALLSTATE....3 yrs ago I owned a home in suffolk county,NY… In 2008 ALLSTATE contacted me to let me know that since I did not have any other policies with them I either had to BUNDLE UP my policies or they would cancel my home owners insurance policy in 6 months!! … I was a excellent paying customer and never filed a claim! … I am now a State Farm customer.

Nairb: They have been doing that in Mississippi since 2005.

Classact: I had Allstate for over 20 years before I filed my first claim. They practically doubled my premiums. So I dumped them.

J. McBride: My father, who lives in NC, had Allstate homeowners for 62 consecutive years. He is unable to drive because he has Parkinson's Disease. Allstate dumped him … I found homeowners through another company. It saved my father $600 a year. Needless to say,"the Good Hands" Dad is in are mine.

AppalledState: Avoid Allstate at all costs … Allstate is the "Bank of America" of insurance companies.

Jim: Wow! They haven't changed a bit! I was a long time (16 year) Allstate agent about a decade ago and left them to start my own independent agency due completely to their lack of morals. They would say one thing that "looked" like they were a good and caring company only to do just the opposite to their clients behind their backs.

Fedup: Allstate is not the only one requiring bundling. We live in Arkansas and recently were told by our independent insurance agent the companies she represented all required bundling.

Former Allstate Customer: When I needed to make a change to my homeowner's policy, Allstate insisted that I switch my auto policy to Allstate. I refused and switched my homeowner's to Liberty Mutual. I had been Allstate's customer for my homeowner's insurance for 15 years and had made zero claims during that time. Who wants to deal with a company that treats you like that?

Jackie B: Until January 1, 2012,  I had homeowners and auto insurance continuously with Allstate since 1964. That is 48 years. My premiums have been increasing dramatically the past few years. I am 69 and living on a fixed income. When I asked Allstate to lower my coverage which would lower my rates, they dumped me like a hot potato and a reference that my credit rating was not what it used to be. Thankfully, I had the good sense to buy other, cheaper coverage with State Farm before my policies expired.

In the interest of fairness, I wanted to include some ringing endorsements of the "good hands" folks. Unfortunately, out of 196 comments, I could only find one:

Steve E: All State did a stand up job when my father passed away. However they are expensive and my mom is on a fixed budget. Rates go up a little every year and she has been with them for decades. She will be going to my broker this year and get competitive bids without introductory rates that increase after a year.

I speak with insurance agents and companies almost daily and can tell you that across the board, they feel unfairly vilified these days, lumped in with those evil subprime lenders and mortgage-backed securities peddlers who brought this economy to its knees. Insurers insist they're the good guys in all this, the answer – not the problem.

But based on these responses, not all of us are feeling the love.

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4 Comments
bob brubaker
February 25, 2012 at 8:24 pm

all of the comments in this posting can be said about any Insurance company in the USA. I know as I have been with several and they are all the same pick wisely

Paul Allen
February 14, 2012 at 4:07 pm

Had allstste policy for years 70's 80's Had no at fault accidents but then had a vehicle stolen in NYC Of course after
settlement the policy was not renewed That is THE GOOD HANDS PEOPLE

Jane Jolly
February 08, 2012 at 6:42 pm

Carried Allstate for two decades without filing one claim. After hurricanes and ice storms put trees on my home and cracks from this summer's east coast earthquake did minor damage, I feared Allstate cancelling my policy so opted to bear the expenses of repair myself rather than file a claim and jeopardize my policy being cancelled! A lot of good that did! They cancelled me anyway, and for what....not having a car insured by them. THIS is what earns corporate Amerika a bad name! I wouldn't look at another Allstate policy if it was free!

noThanks
January 31, 2012 at 12:08 pm

State Farm has started "encouraging" people who only have a homeowners policy, to bundle it with an auto policy. As best I can tell, that will shift over time....first requiring higher deductibles (thereby reducing their payment in the event of a claim), then eliminating the possibility of having a homeowners policy without the auto policy, altogether. Buckle up folks, virtually the entire industry is headed in this direction...