The advertisement sounded so tempting. All you had to do is be a member of Allstate Auto Insurance, and you will have accident forgiveness and if you don’t have an accident, you will get 5% off your next six month premium. Wow, I had just switched to Allstate and now they were advertising something that I could actually use – a discount for being a safe driver. I’m actually looking forward to my six month’s anniversary so I can see a reduction in rates.
Hmm…well, I finally received the paperwork on the new idea, the advertising campaign that is supposed to make Allstate better than all the other Auto Insurance companies! Turns out in order to get the accident forgiveness part “Gold Protection Program” they charge you an additional $50 per 6 months, and if you do cause an accident, after joining they will deduct $100 off your deductable – After 4 years, you won’t have a deductable! You probably won’t have the same car either. Oh, and you’ll be out about $500 extra…so you do actually pay for the deductable, just before you have the accident.
The other program is called the Platinum Protection Program. With this one, you get the same above benefits, plus receive a Safe Driving Bonus of 5% off your next renewal premium….sounds good? The catch is that your premium increases by $100 or more (depending on your contract). Sound to me that the only one who benefits is Allstate – at least for the first few years. They charge me $100 extra for the new program, and then at the next premium, charge me $50 extra. (reducing it by 5% or so…actually the fine print says “Up to 5%), so you may not actually receive the whole discount.
Assuming that my driving remains the same, no accidents, I get to be charged an additional $50 a month to possibly reduce a deductable that I may not ever need.
So the next time you see a commercial with the man with the assuring voice telling you how great Allstate is and how much money you’ll save with their new “Your Choice Auto Insurance’ – read between the lines. The insurance companies are really only out for themselves, it is an illusion that they are there for you.