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4/6/08
Allstate Insurance
A long time ago and a short time ago. In a place both near and far away a professor had Allstate Auto Insurance. The reason was that the sister of a former neighbor's husband had an Allstate Agency in Clinton, Connecticut. For many years he had no trouble with Allstate paying his payments online. All of a sudden he got a notice that he would have his insurance canceled if he did not pay $265. He called the agent and said he had paid $200 and would pay another $100 that day. The professor thought that with the $200 he had paid he was current but he paid another hundred. In a visit to his Credit Union that had his car loan and they said they had received a letter that he was behind on his payment and the insurance would be canceled. He responded that it was true that he had sent Allstate $200 thinking it was paid and when he got the letter he sent in another hundred. Eight days after the second payment he received another letter from Allstate Insurance saying that they received the $200 but he stilled owed $65 and the insurance would be canceled. He called Allstate to see what was going on. Allstate said that he was all paid up. The professor asked when was the money transferred from his bank's computer to Allstate? They said seven days after it was sent in. Seven days seems like a long time for an electronic transaction to be logged in to Allstate. Why so long? What is the purpose of this long waiting period for Allstate to login a electronic transaction? The professor sent this case story to the president of Allstate to ask why? No Answer.

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This made no sense to me. For a customer and his Credit Union to get two letters of policy cancellations when they have been paid. A seven day laps in an electronic transaction gives Allstate a chance to reject their customers and raise premiums. A speculation on the part of the professor is that Allstate may be desperate for money. So desperate that they will send a good customer a cancellation notice. Another possibility is that they are having problems with their computer system. Of course they may also be sending a message not to pay online through your own bank. It may also be that my bank is holding the money on their transaction for seven days to make more interest on their use of the money. The professor has contacted his bank to inquire. At this point I do not know who is the culprit. Message: From My Bank In response to your inquiry, Allstate Insurance does not accept our payments electronically. Your payment is sent to them by check the next business day. If you have any further questions, please let me know. Thank you, If anyone has any idea why Allstate does this please let me know? I still think it could be to put customers in violation and then raise their rates.