Allstate Drops "Accident Forgiveness" in California
Allstate is no longer offering their famed "Accident Forgiveness" program in California, which many users claimed was deceptive and unlawful.
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Allstate Drops “Accident Forgiveness” in California

Posted By The Law Offices of Eugene G. Bruno, P.C. Posted in: Car Accident.

27-January-2011

No doubt you’ve seen the ads for Allstate’s “accident forgiveness” program, which prevents Allstate from increasing your premium if you have an accident. Approximately 10% of Allstate’s 1.5 million customers in California purchased this additional coverage.

The Los Angeles Times reported last week that a consumer watchdog group asked the California Department of Insurance to investigate Allstate’s “accident forgiveness” program, which they say is deceptive, unfair, and unlawful because it surcharges customers up to 15% with the promise that a future accident will not cause the customer’s insurance rates to go up.

Bloomberg Businessweek also reported: Allstate’s accident forgiveness program became “a cash cow for Allstate by charging customers more than they should be paying under California’s good driver law,” said Todd M. Foreman, in-house counsel for Consumer Watchdog. “Allstate was receiving $20 million a year in extra premiums since it began selling the program in California in 2008.”

Is it fair that Allstate’s customers pay more now to avoid paying more later? When the Department of Insurance decided to investigate, Allstate discontinued the program rather than cooperate with the Department’s investigation. What is really behind Allstate’s “accident forgiveness” program and what is Allstate hiding?

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