Our family in Allstate's Hands
Disclaimer: What you read here are my recollections and opinions of events that I experienced with Allstate - and should not be considered statements of fact.
Allstate, the insurance company, proudly declares its motto: "You're in Good Hands." These words are meant to inspire trust, suggesting that Allstate is reliable, competent, and fully capable to protect its customers from life's risks.
While we all understand that advertising often involves puffery, sometimes the reality behind the slogans can be shocking. This is the story of my 75-year-old mother, Ljubica Zidarić—a visually impaired widow—and her experience with Allstate. We share this to shed light on how she was treated, so others can reflect and decide for themselves just how safe they are in Allstate’s hands.
A Legacy of Loyalty
My father, Mijo, purchased his first car in 1969 and, with it, his first car insurance policy from Allstate. Over the next 50 years, his loyalty to Allstate never wavered. When he and my mother, Ljubica, bought their first home in 1974, they initially turned to Wawanesa for property insurance. However, in 1994, an Allstate agent convinced my parents to switch their home insurance to Allstate, offering a discount for bundling policies. This marked the beginning of their combined home and auto insurance journey with Allstate.
But here’s where the story takes a turn.
Rising premiums over the years
Despite decades of loyalty and an impeccable payment record, the cost of my parents’ Allstate property insurance steadily climbed—far outpacing inflation and raising serious questions about fairness.
Unappreciated loyalty
Loyalty, it seems, is a one-way street. Despite paying on time and maintaining long-standing policies, my parents did not see any rewards for their decades of commitment. In fact, Allstate appears to penalize long-term customers rather than valuing their trust.
When I spoke to my sister, who owns a house that is twice as expensive as my mother's house, about her house insurance, she told me that she pays about $1,600 per year with Desjardins. When I started shopping around and comparing rates, I realized that there is something terribly wrong with the premium that Allstate is charging my mother.
While we all understand that advertising often involves puffery, sometimes the reality behind the slogans can be shocking. This is the story of my 75-year-old mother, Ljubica Zidarić—a visually impaired widow—and her experience with Allstate. We share this to shed light on how she was treated, so others can reflect and decide for themselves just how safe they are in Allstate’s hands.
A Legacy of Loyalty
My father, Mijo, purchased his first car in 1969 and, with it, his first car insurance policy from Allstate. Over the next 50 years, his loyalty to Allstate never wavered. When he and my mother, Ljubica, bought their first home in 1974, they initially turned to Wawanesa for property insurance. However, in 1994, an Allstate agent convinced my parents to switch their home insurance to Allstate, offering a discount for bundling policies. This marked the beginning of their combined home and auto insurance journey with Allstate.
But here’s where the story takes a turn.
Rising premiums over the years
Despite decades of loyalty and an impeccable payment record, the cost of my parents’ Allstate property insurance steadily climbed—far outpacing inflation and raising serious questions about fairness.
2012: $1,207 ($1,575 in 2024 dollars)2017: $1,338 ($1,629) – up 3.4% over five years.2018: $1,431 ($1,704) – up 4.6%.2019: $1,643 ($1,919) – up 12.6%. (Year of Mijo’s death.)2020: $1,778 ($2,062) – up 7.5%.2021: $1,993 ($2,235) – up 8.4%.2022: $2,278 ($2,392) – up 7.5%. (up 46.8% over 5 years)2023: $2,409 ($2,437) – up 1.9%.2024: $2,578 – up 7.0%.2025: $2,859 – up 10.9%. (up 25.5% over 3 years)
Note: The insurance policy starts in mid-November and goes until the following November. In the chart, the year indicated is the year in which the insurance ends. The dollar amount is shown in the amount at the time and a conversion, in parenthesis, shows the equivalent in 2024 dollars. The increase in premium is based on the 2024 equivalent to eliminate inflation effects.
Unappreciated loyalty
Loyalty, it seems, is a one-way street. Despite paying on time and maintaining long-standing policies, my parents did not see any rewards for their decades of commitment. In fact, Allstate appears to penalize long-term customers rather than valuing their trust.
When I spoke to my sister, who owns a house that is twice as expensive as my mother's house, about her house insurance, she told me that she pays about $1,600 per year with Desjardins. When I started shopping around and comparing rates, I realized that there is something terribly wrong with the premium that Allstate is charging my mother.
- Ljubica received a quote from thePersonal Insurance (affiliated with CIBC Bank) for $1,637 per year—$1,222 less than what Allstate charges her now.
- I, Željko, with no prior property insurance history, received quotes of around $1,600 from both TD and Desjardins.
- From Allstate? I received two quotes—one without a soft credit check, receiving a quote for $1,704, and one with a soft credit check giving $1,284.
Quote for Ljubica, from thePersonal
We were SHOCKED to see Allstate charging my mother $1,575 more (2.2X !) than it would charge me to insure the exact same house! I would gladly insure the house but cannot because my name is not on the deed.
The credit score mystery
It’s worth noting that Allstate appears to have, in Ontario, started using credit scores in calculating insurance premiums in 2016. We cannot be certain because Allstate never informed us of this. While this practice is increasingly common, what’s troubling is the lack of transparency. At no point did Allstate notify us of this shift, and continually evaded answering direct questions about it, leaving us to uncover it on our own.
Worth further investigation: Is it legal to use a credit check, to access a credit score and use it to develop an insurance score and from that a premium, without the consent of the customer?
The bottom line
After 50 years of unwavering loyalty, my father’s legacy with Allstate ended not with gratitude but with exorbitant premiums and unanswered questions. My mother’s experience underscores a harsh reality: for some companies, loyalty doesn’t pay.
If you’re an Allstate customer—or considering becoming one—ask yourself: Are you in good hands? Because, for us, it feels like we were just handed the bill, and Allstate profited handsomely.
It’s worth noting that Allstate appears to have, in Ontario, started using credit scores in calculating insurance premiums in 2016. We cannot be certain because Allstate never informed us of this. While this practice is increasingly common, what’s troubling is the lack of transparency. At no point did Allstate notify us of this shift, and continually evaded answering direct questions about it, leaving us to uncover it on our own.
Worth further investigation: Is it legal to use a credit check, to access a credit score and use it to develop an insurance score and from that a premium, without the consent of the customer?
The bottom line
After 50 years of unwavering loyalty, my father’s legacy with Allstate ended not with gratitude but with exorbitant premiums and unanswered questions. My mother’s experience underscores a harsh reality: for some companies, loyalty doesn’t pay.
If you’re an Allstate customer—or considering becoming one—ask yourself: Are you in good hands? Because, for us, it feels like we were just handed the bill, and Allstate profited handsomely.
Comments
Post a Comment