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COPYRIGHT 1996 - 2008
4/6/08
 Allstate Insurance Rates

A long time ago and a short time ago. In a place both near and far away in 1991 a professor purchased Allstate Auto insurance. He kept the policy until March 2007. His agent was a good man who he trusted. The professor asked to have his nineteen year old daughter added to his policy. He paid on time and no accidents or tickets for his daughter, wife, or himself. The six month bill came and Allstate raised the premium $1,153.00 from $7,47.00 to $1800.90. Astounded he called Geico for a quote. Geico came back with increased coverage for $857.30 for six months. I called my agent and told him I would cancel the coverage as of today. I said he was a good agent and I was sorry to leave him. I also said that if he wished I would contact Allstate and inform them of what went on. He suggested that this would do no good.

Marketing Application IMBALANCED

In my view Allstate is trying to destroy their agent network and move to the web and computerized insurance. This is a corporate strategy to force the agent's customers to leave and have to change insurance carriers or close their offices. A similar thing happened with travel agents.

Is this bad or good business practice? My current view is that this is not in the long term interest of Allstate. The reason may be that to hurt their agents they decided to hurt their customers. All things being equal the customers may hold a gouge for Allstate and not their agent. Refusing to return to Allstate in the future. I suppose Allstate believes that their customers are loyal to no one and just want the best price.

My own advice to Allstate, which will have no impact, would be not to give up their best customers. My other thought is that Allstate is in deep trouble and is in a life and death struggle from which they will not recover.

The reason is I believe that Allstate Insurance leadership has not got a clue of what is happening and how to solve it. It is the same problem as the congress members that do not know anything about Islam who entered into Iraq. I feel bad to see this is here now because it affects my children, students, and me. Should I tell them that it is the story? Do you think the members of congress have now learned something about Islam?