Allstate to Drop Some Arkansans Who Don’t Bundle Policies

Sign in front of Allstate corporate headquartersAllstate will not renew the homeowner policies of about 4,000 Arkansas customers if they do not also buy auto coverage from the company, officials have confirmed.

An Allstate spokeswoman said the move—which comes on the heels of similar nonrenewals in North Carolina—is an effort to manage overall risk in the state’s property coverage market.

“Nonrenewing policies is a difficult decision, but necessary in order for Allstate to remain financially strong for Arkansas consumers,” Allison Hatcher, a spokeswoman for the company’s Southern region, said in an email.

Hatcher said policyholders in the Natural State will be able to renew their homeowner coverage—and possibly take advantage of discounts for multiple policies—if they elect to also buy Arkansas auto insurance through Allstate. For those who do not, she said, the company “may be able to offer … coverage through another proven, stable property insurance carrier.”

Hatcher did not identify a possible replacement carrier or say when the nonrenewals are due to take effect.

Alice Jones, communications director for the state Insurance Department, said regulators are looking into the nonrenewals but would not comment further.

Similar Nonrenewals First Reported in North Carolina

North Carolina regulators earlier this week confirmed that Allstate is dropping more than 45,000 residential policyholders in that state if they do not bundle their coverage with vehicle policies.

A spokesman for state regulators said Allstate and other multiline insurers are revamping their underwriting and marketing strategies in order to focus on writing auto and homeowner policies, and some have stopped offering residential and other coverage types if policyholders do not also go through them for auto coverage.

Regulators have gotten about 30 written consumer complaints about the nonrenewals since Allstate began sending notices to North Carolina customers in March, spokesman Kerry Hall said.

Allstate informed the department that it will not renew about 30,400 homeowner, 10,500 landlord package and 4,900 mobile home policies.

More than 26,000 homeowner and about 9,300 landlord package policyholders in the Tarheel State will be able to get quotes from Universal North America as part of an agreement between that company and Allstate. And those with mobile home policies can seek coverage through American Modern Insurance Group, according to regulators.

To read the experiences of current and former Allstate policyholders, readers can find user-submitted Allstate auto insurance reviews online.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

One Response to “Allstate to Drop Some Arkansans Who Don’t Bundle Policies”

  1. Nancy
    10. Jul, 2012 at 1:04 pm #

    I have just received “the call” from the office of my agent (not my agent, of course…someone who had the sad duty to tell of the pending cancellation if I don’t purchase car insurance from their company). This is not the first outrageous problem I’ve had with this company, but it’s definitely my last.

    I will NOT be strong-armed into buying car insurance from them. The call was made on the pretense of making sure my policy had all the discounts coming to me (it didn’t, though I’ve provided the info 3 times to make sure I got a particular discount, for which I qualify)…..and then hit me at the end with this change in policy. In one month, my policy is up for renewal and will NOT be renewed because I don’t have car insurance through this company.

    When I originally took out homeowner’s with this shady company, I was quoted a price, about $200 better than all the major competitors for the same coverage. I paid a year in full. Within 6 six weeks, I got a letter saying I’d been quoted the wrong prices and had to pay up even more….to match within a few dollars of what the competitors had quoted in the first place….what I now believe was a switch-and-bait tactic.

    I am FURIOUS that this latest policy is being apparently directed just to NC and AR residents, I am furious that I’m being strong-armed, and I am furious that the woman who called me made sure that she referenced one small claim (I was paid about $350 for storm damage)as an example of how much the insurance company had suffered because of the tornadoes of two years ago in AR. I do not understand how this can be legal and why consumer protection agencies aren’t doing something about this….but it’s sickening.

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