Allstate Insurance Really Stuck It To Me

T

tmal2

Member
Feb 14, 2009
116
Warwick RI
Boat Info
1989 340EC
Engines
Twin 7.4L Mercruisers with Hurth transmissions
My Allstate boat policy came up for renewal on 2/3/09. At the time I was shopping around for a new policy due to Allstate's high rates.

Because I was gonna need an insurance survey for a new policy and my boat was still on the hard under cover at the time I just payed the renewal and figured I would cancel the policy once I got the boat in the water and got the survey done.

My annual premium with Allstate was $923. By the time I was actually able to get my survey done and have a new policy in place it was the end of May. When I canceled my Allstate policy I had paid Allstate a total of $628 of the $923 total for the premium.
A few weeks after I canceled the policy I get a bill saying I owe another $104 on the policy. Thinking this is obviously a mistake because I had at that point paid 2/3 of my annual premium and only had it in effect for 1/3 of the time and half that time I was not even in the water. I actually figured I would be getting a refund.
I called my agent and they told me that Allstate has the right to charge 78% of the premium price if I was covered for more than 90 days. I was shocked and furious about this.

Now I know marine insurance works differently than home and auto insurance and they make these rules to keep people from getting coverage only when the boat is in the water and then canceling coverage but as far as I'm concerned, what Allstate did to me was just wrong.

So here I am deciding if I am gonna actually pay this bill or tell them to stick it.
I can't believe they actually want to charge me $720 of a $923 annual premium for 4 months of coverage. If I had known this was gonna happen I would have never renewed the policy:smt013

I'm sure all insurance companies have rules like this for their marine policies but that does not make it right.

For anyone shopping for insurance I suggest you ask a lot of questions about their short rate table so that you don't end up in the same situation I have.

Anyone considering Allstate, I really recommend shopping more. I dropped them after being a customer for over 20 years because I got twice the coverage for a lot less money elsewhere.
 
Wow, sorry to hear, but thanks for sharing. Good to know.

After all the stories I've heard over the years about insurers that aren't specialists in boat insurance, I've always stayed away from them. For the sake of a few bucks its not worth their fine print.
 
Shopping is one thing, signing a contract with intention of canceling it without asking the exiting ramifications is expensive and honestly"silly"

Sorry you burned yourself, live and learn.
 
Oh, I think you should pay your balance they claim you owe, otherwise they may sue you for the entire annual premium and also you may find yourself blacklisted in the marine insurance machine or have bad credit or have a permanent red flag and pay twice what you pay now..
 
tmal2 said:
My Allstate boat policy came up for renewal on 2/3/09. At the time I was shopping around for a new policy due to Allstate's high rates.

Because I was gonna need an insurance survey for a new policy and my boat was still on the hard under cover at the time I just payed the renewal and figured I would cancel the policy once I got the boat in the water and got the survey done.

My annual premium with Allstate was $923. By the time I was actually able to get my survey done and have a new policy in place it was the end of May. When I canceled my Allstate policy I had paid Allstate a total of $628 of the $923 total for the premium.
A few weeks after I canceled the policy I get a bill saying I owe another $104 on the policy. Thinking this is obviously a mistake because I had at that point paid 2/3 of my annual premium and only had it in effect for 1/3 of the time and half that time I was not even in the water. I actually figured I would be getting a refund.
I called my agent and they told me that Allstate has the right to charge 78% of the premium price if I was covered for more than 90 days. I was shocked and furious about this.

Now I know marine insurance works differently than home and auto insurance and they make these rules to keep people from getting coverage only when the boat is in the water and then canceling coverage but as far as I'm concerned, what Allstate did to me was just wrong.

So here I am deciding if I am gonna actually pay this bill or tell them to stick it.
I can't believe they actually want to charge me $720 of a $923 annual premium for 4 months of coverage. If I had known this was gonna happen I would have never renewed the policy:smt013

I'm sure all insurance companies have rules like this for their marine policies but that does not make it right.

For anyone shopping for insurance I suggest you ask a lot of questions about their short rate table so that you don't end up in the same situation I have.

Anyone considering Allstate, I really recommend shopping more. I dropped them after being a customer for over 20 years because I got twice the coverage for a lot less money elsewhere.
Click to expand...

You are lucky, how about collecting on a claim? Run tmal Run
 
Last edited:
telling them to stick it will result in a blemish on your credit report, I did it to Geico under the exact same circumstances, letting my pride get in the way.

7 years that damm thing was on my credit report!
 
You canceled after paying $600 on a $900 policy? Would seem cheaper to pay the extra $300 for 8 more months of coverage than find another policy at that point.
 
In addition to the damage to your credit rating, Allstate would probably declare your policy canceled for non-payment. That would have a negative impact to all of your insurance policies.

Henry
 
I know the bill has to be paid and I will but it still burns my butt. I never intended to not pay for what I used of the policy but being forced to pay 78% seems pretty excessive.

If I had not already had my new policy in place I would have kept the original policy till it expired. I guess having the old policy come up for renewal in February is really what caused me all these issues. I figured they would pro rate what I had used and refund the difference like they do with a home or auto policy. Boy was I wrong.

Live and learn I guess. I do know that I will never do business with Allstate( after 25 years of using them exclusively for home, auto and boat) again and I'm happy to have my new policy through Boat/US which gives me twice the coverage of my old policy for 1/3 less the cost.
 
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