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 DUE date.

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.

What If?

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 with Allstate".

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.

Case Study

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 premiums.

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 technically uninsured.

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 this message)

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.

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.

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 withholding information.

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 here.

The Consumers Acton Plan
146-23 61 Road
Queens NY 11367-1203
718 939-5800

You have nothing to lose and everything to gain.