Breaking up is hard to do [Insurance]
Since I’m switching to Erie Insurance effective this coming weekend and saving $1400 on home and auto insurance, I had to call Allstate to cancel my my policies with them prior to the semi-annual renewal which also happened to be this weekend.
I’ve had a 13-year relationship with Allstate, and over 7 years with my specific agent. She’s been my agent since moving to the D.C. area after college and has helped answer a number of questions and concerns following my numerous traffic incidents over the years. She’s always been friendly, even as Allstate was charging me a bundle for insurance.
So today I called and got right through to my agent (Linda) and bluntly said that I’m “calling to cancel my home and auto insurance as I’ve switched to Erie Insurance”. She sounded almost devastated, and I know there was some sincerity in her voice as no one likes to lose a client, regardless of whether you’re part of a huge corporation or not. She asked that I send her an email stating the same thing I said verbally (for her records and to cover Allstate’s rear), which I promptly did after disconnecting.
So Linda, if you’re out there, it’s been a great relationship (money aside). Allstate has handled every claim with professionalism, courtesy and efficiency. I just wish they weren’t charging me $2500 a year for auto insurance and another $850 for homeowners insurance!
How I paid for the new policies
If you’re wondering, I paid the auto insurance in one lump sum of about $1300 for one year’s payment. For the homeowner’s insurance, I just sent off the check for about $650 for the next year, but since I still have about 5 months left in the Allstate home policy, I’ll have to get a prorated refund back from Allstate. Also, I’ll eventually have to get my mortgage provider’s info to Erie so they can work out the escrow stuff for the next year. So I figure we should be getting about a $500 refund from Allstate in a few months.
UPDATE: Clever reader “ohsusana” emailed me that I won’t be getting a “pro-rated” refund, but rather a “short-rated” refund. And as a followup, this morning my Allstate agent emailed me to confirm the policy is cancelled and I’ll be getting $353, not $500. Oh well, what can I do?
UPDATE 2: I found a great posting over at SavingAdvice.com – they outlined the insurance fees charged by most major insurers. Allstate’s cancellation fees are in fact short rated, along with AAA and American Family. Click here to check it out.
Photo credit: Mike Mozart.