Disgusted with their failure to comply with a state subpoena, Florida Insurance Commissioner has banned Allstate from selling car insurance in the state of Florida. [Tampa Bay’s 10]

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  1. MercuryPDX says:

    ‘Good Hands’ people get finger from Florida… details at 11.

    “He estimated that writing car insurance in Florida is worth about $1 billion a year to Allstate. “We’re going to hit them where it hurts. We’re going to get their attention,” McCarty said.”

    McCarty said the order, which he will issue this afternoon, will only affect Allstate’s ability to sell new automotive insurance policies, and has no impact on renewals or new home insurance policies.

    So if the issue is with HOME insurance, why are they penalizing their AUTO policies division?

  2. The Great Aussie Evil says:

    Obviously, you aren’t in good hands.

  3. mthrndr says:

    Refusal to comply…That’s Allstate’s stand

  4. Silversmok3 says:

    @ MERCURYPDX
    Because they make the most money off of car insurance

    The “Bermuda High” plan was to basically dump/cancel home insurance customers in favor of more profitable auto customers.

    At least, thats before the state pulled the plug on their ability to add those “profitable auto customers”.

    Kudos to Florida for having the spine to ask the tough questions.

  5. Rectilinear Propagation says:

    Wow, that’s kinda awesome!
    (The action taken by Florida, not Allstate.)

  6. Red_Eye says:

    Umm if I recall didn’t Allstate try to stop selling home insurance in FL? So maybe penalizing their auto biz is all thats left? Either way if you do business with this company I have a bridge to sell you. My wife worked for them as a temp at one point and some of the practices would net them a creative writing award.

  7. Narb copied that floppy says:

    Good.

    Had an easier time squeezing blood from a stone than to get them to pay for a keyed window.

    “I’m sorry sir, your policy only includes damage caused by car keys, so you need to produce the keys to verify their type.”

    I wish I was joking

  8. ChrisC1234 says:

    @Narb: That’s as bad as the commercial talking about not covering the car being hit by a tree because that species of tree isn’t covered…

    Anyone know if that’s an Allstate commercial?

  9. m4ximusprim3 says:

    Were they Ficus Keys?

  10. scarletvirtue says:

    @Narb: That doesn’t surprise me! There’s a reason that my co-workers and I call them “those bastards”.

    I don’t know about the customers calling into Allstate, but for the independent agents, we get stuck with half-hour hold times – once you get through the neverending phone tree, that is.

  11. DreamOn says:

    I have been a longtime customer of Allstate and have had no problems with them…. until recently. Coincidentally, I noticed some changes in fees and such with my auto policy starting in October. I did not make these changes, Allstate did. These changes added more than $10/month to an already increased premium (I have not had any claims either). Trying to get information from Allstate was difficult and still not completely resolved. Calling the 800 number only gets you a CSR in INDIA who can only refer you to your agent which may be alright if you have an agent that will take time to speak to you.
    My policy has switched agents 4 times in the last 3 years due to the agents “retiring” or “getting out of the business”. I can only guess that they saw the writing on the wall and left Allstate before the #$%! hit the fan. One can only imagine what Allstate is hiding or if their questionable practices extend beyond homeowners products, even beyond Florida. I would not be surprised. I’ll be changing insurers ASAP. I hope others do too.

  12. Buran says:

    @mercurypdx: Because that’s where the profit is. Whack the nonprofitable division, they don’t care. Cut the profits and they’ll toe the line.

  13. For once the state is doing something good and semi-timely. Hit these big companies in the nuts everyone once in a while or get the f$%# out. I’m glad I has USAA..

    I guess Dennis Haysbert will need a new season of The Unit soon to pay his bills!

  14. Sudonum says:

    @mercurypdx:
    I am a soon to be former Allstate customer in FL and LA. Post Katrina, Allstate told us that the only way that they would continue to write our Wind and Hail policy, on the 2 houses in LA (only one of which we’ve ever filed a claim on) was if we also placed our auto policies with them. We did so. It cost us a few more bucks for the cars, which were previously covered by Geico, but was overall cheaper than the competitors if we had to go elsewhere for W & H.

    Fast forward to last October, Allstate notified me that they were canceling W & H regardless. They have tried the same thing in FL. Florida has a specific law against insurers requiring you to bundle all their insurance with one company. And FL has a much tougher Insurance Commissioner than LA does.

    In my situation my Allstate agent placed my W & H with Louisiana Citizens, which is the insurer of last resort. My W & H went up almost $2k a year. I found the same coverage from Hartford through an independent agent for a savings of $3k a year. I’m now researching Hartford, but even though Allstate HAD been very good to me, I figure that, on average, Hartford can’t be any worse than Allstate.

    I guess as far as the State of Florida is concerned, if Allstate wants to require people to bundle Homeowners with Auto, then they are going to do the same.

  15. Anonymous says:

    I’ve been an Allstate customer for almost a decade and have been very pleased. They were extremely helpful when I had a backpack full of ski gear stolen from a car in California. My renters insurance covered all of it and they sent me a check pretty fast. Very little hassle.

    They also called me last fall and asked me to come in for a rate and coverage review. I did some comparison shopping before hand. By the time I was finished, my insurance rate had been cut by about $800.

  16. trollkiller says:

    @Red_Eye: Umm if I recall didn’t Allstate try to stop selling home insurance in FL?

    I think you are right and if I remember correctly Fla. told them if they pulled out of the home market they could no longer write auto insurance.

  17. rjflyn says:

    The state of Florida has told insurance companies you can’t cherry pick. If your company has homeowners insurance and want to sell car insurance in the state you have to sell them both. No oh were not making money on this so were only going to sell that.

    Thats basically what they that told Allstate, Allstate stopped selling homeowners as the state would not let them raise there rates, and just wanting to sell car insurance. The state came back with a request for a mountain of paperwork, which as of yet has not been produced. And here we are with the state cutting them off.