Probably Owes You A Refund
Management Consultant, Author, Professional Speaker
1995-1998 All rights reserved in all media
If you are among the millions of Allstate's customers, at
some point in time, you are apt to forget or be unable to pay an insurance bill on its due
date. You may go on an extended trip, get into a financial bind, or be involved in a
personal commitment that causes you to forget to pay your insurance bills on or before the
Your Auto Insurance
The date your auto insurance policy becomes null and void
is clearly stated in your insurance contract. It says your insurance expires at 12:01 AM
at the address of the insured on the due date. If you suffer any covered loss after 12:01
AM, Allstate Insurance company will deny paying your claim because no insurance existed at
the time of your loss. Your insurance policy will be invalid.
But, what if you don't have a loss between the time
your insurance expires and when you finally get around to paying your bill? It could be
one day, a week or longer.
The answer is Allstate is very likely to take your money and tell you to rest
peacefully. You again have "peace of mind" because you are "in good hands
Will they tell you that you that they are NOT entitled to be paid for the days that you
were technically uninsured?
We Think Not, We Know Not
If you have ever paid your premium one day late, you
were NOT insured between 12:01AM on the expiration date until the date that Allstate
posted your payment in their records. Which is posted the day after they get your
payment. (We believe that Allstate should honor the postmarked date of payments.
However, they claim that their "company policy" is, the reinstatement date is
the day after they posted your payment). This gives them another two to three days
or more to use your money and have the opportunity to deny a claim should you suffer a
loss during this uninsured time frame.
As you will see below, this is only if you do not suffer a loss between the time your
policy became invalid and the time your payment has been posted in their records.
A case of Allstate's Ability to Cheat Their Customers
Using Legal Technicalities.
This is a documented case of how Allstate
manages its claim department. Heretofore they could do this and get away with it because
the victims did not have an easy and viable method to share their suffering with other
consumers. Not any more! Now Consumers have a level playing field with which they
can play the Allstate's game.
Raj Patel, an engineer employed by the Federal Government
in Washington DC, had been insured by Allstate since August 1989. He had failed to pay his
premium on the due date. During this 6-year period, his total payments to Allstate
amounted to $16,200 and not one claim. Also, he was always several days late in paying his
On February 16, 1995, Patel's whole household was in an uproar because he, his wife,
and 4-month-old baby all had a serious case of influenza that makes people bedridden. At
12:01 AM, Patel's insurance became invalid because Allstate did not have his money.
Patel managed to get his auto insurance payment check in the mail on February 21, 1995.
Two days later, Patel was involved in an 11-car collision on an icy road. Ten cars in
front of Patel had collided and Patel's car hit the car in front of him.
Patel's car suffered $4,500.00 of damage. Fortunately, the car he hit only suffered
$1,000 worth of damage. At first, Patel's insurance company, Allstate, had informed
him and the person he hit that Allstate would pay for the damages. However, Allstate
changed their mind the next day when they reviewed Patel's files.
The bottom line was "the good hands people" at Allstate, rejected Patel's
claim. They said Patel was not covered for his losses even thought he had mailed his check
two days before the accident. To add insult to injury, Allstate had received Patel's check
and deposited it in their bank account on the day of Raj's accident.
To get out of paying for Patel's 's losses, Allstate in its infinite wisdom chose to
REFUND Patel $39.09 for the seven days that he was technically uninsured.
What Does This Mean to You?
It means when you are one minute late, you are
It means that if you pay your insurance late and suffer a loss in the interim, Allstate
will deny your claim.
It means Allstate is great at collecting your money and is even better at defending
itself by avoiding paying claims.
It means for every day that your payments are posted past the due date, Allstate
owes you one days "unearned" premium as a refund. (This is why you are reading
It means Allstate will never inform you that you are due a refund for every day that
passes until they post (not receive) your payment.
It means, Allstate knows that ignorant consumers are Allstate's best customers.
Your Time and Money are Their Profits
Shrewd money changers (Allstate) practice the
concept of collecting early and paying late or never which is exactly how Allstate profits
from your premium dollars. Their stock prices doubled in the last year.
If you have ever been late paying your Allstate bill, according to Allstate's
actions above, the period of time between the date your contract ends and the date your
paid premiums were posted, not mailed or received by Allstate, your were technically UNINSURED and therefore Allstate has NO right to keep
your money for the period(s) you are not TECHNICALLY insured.
If you have ever paid a premium late, Allstate owes you a premium refund exactly
like they refunded to Patel. What is good for the goose is good for the gander!
The Good News
Thanks to Mr. Patel and other educated consumers who
share their grief with The Consumer's Action Plan, you
have the opportunity to learn from experts how to manage any insurance related situation.
Members of The Consumer's Action Plan are able to manage their insurance costs and when
necessary have the clout of a large membership organization who know exactly how to
motivate insurance company executives.
What You Can Do
If you own a car, a home, or a business, you have
the opportunity to become a member of The Consumer's Action Plan today so that you can
avoid being caught in the vicious traps in which some insurance companies like Allstate
snare their victims.
Moreover as a member you can gleefully share this
information with as many of your friends and relatives as you want. By doing so, you will
demonstrate to Allstate and other like managed insurance companies who prey on consumer's
ignorance that you are fed up with their arrogance and you aren't going to take it
What Goes Around Comes Around
Thanks to your access to the Internet and the ease
of communication, The Consumer's Action Plan will no longer allow Allstate and other
insurance companies to victimize its insured's one at a time. Until The Consumers Action
Plan, insurance companies were able to control consumers by restricting information and
keeping them in the dark on most insurance matters.
Today, that is history because The Consumer's Action Plan's members are kept well
informed and appear to insurance executives as a mountain rather than tiny specks of sand
in the desert of insurance consumers.
Our method of combining knowledge and sharing vital information amongst our membership
will provide you with the tools necessary to reduce your insurance cost and increase your
ability to file a clam that won't be put aside, delayed or stonewalled.
We have strength in numbers and use the Internet to our members' advantage.
"The Consumer's Action Plan" is an association of wise consumers who are
smart enough to invest in their education and remain a member of a consumer group whose
purpose is to provide influence, education and a support system for its members.
This membership reduces the odds of being ripped off
by commissioned Agents and the unfair dealings of insurance companies like Allstate and
similarly managed companies.
Action Plan for You
If Allstate insures you, you may consider looking
for a better insurance company. What good is having a financial parachute that is rotten,
filled with holes and missing the ripcord?
Also, consider looking at your payment records to see if your have ever been late. Even
if you have not been late, it would be a good idea to send Allstate a demand letter to see
if they have ever posted your payments after the due date. Their records determine the
amount of your refund.
If you are like most people and don't keep accurate records then you can send them a
letter demanding they provide you with a copy of their records. Your contract provides
that they can demand your records, so it makes sense for you to be able to demand
the same from them about your contractual obligations.
What you want from them is a verified written report of your payments for as long as
they have insured you. For every day that you were technically
uninsured you are due money back. To determine the value of your daily
premium divide your annual costs by 365 and that gives you your daily cost. Multiply that
by the days you were late and that is what Allstate owes you. If you want to be
technically correct you can also insist that they pay you interest and a penalty for
For the record, The members of The Consumer's Action Plan have been educated about the
way Allstate treats its customers. We suggest that anyone insured by Allstate reconsider.
This page is posted on the Internet as a public service to demonstrate just one of the
many benefits available to the members of The Consumer's Action Plan.
If you want to see one of the many examples of how The Consumer's Action Plan serves
its members click here Demand Letter
To see why you should also be a member of THE PLAN Click
The Consumers Acton Plan
146-23 61 Road
Queens NY 11367-1203
You have nothing to lose and everything to gain.