Allstate Car insurance debaucle

[RAnn]

Friend has had Allstate auto and homeowners for the past 12 years. Never a late pmt, no claims, perfect driving record...
In March we was supposed to settle on a house in Delaware. She called Allstate to have new homeowners and auto transferred. Two days before settlement the deal fell through with the house. (Builder wouldn't complete project). Friend called Allstate (MD) and told them the deal fell through and she would be staying in MD.
Now - she had sent her 6 month pmt for car insurance last week of March for renewal April 1.
Found another house in Delware, settlement scheduled Jun 22. This past Thursday she called her MD agent to tell them. They said her file had been transferred to Delaware. She calls Delaware and they tell her that her car ins has been cancelled for the past 2 months since they sent her back a refund after the last house fell through. (Apparently even though her check memo said car insurance the receivable person put it towards homeowners - which shouldn't have - homeowners was supposed to come out of escrow at settlement). So when she received $$ back from Allstate she didn't put 2+2 together as to what they did. After 2 days of phone calls - Allstate can't find her files and then decides they will not reinstate her. They also told her she will now have to go elsewhere and get high risk insurance since she hasn't been covered for 2 months. MD also has very strict insurance laws that she will owe $20 a day for every day she's uninsured.
No cancellation letter from Allstate all this time.
Needless to say - she's fit to be tied! (And worried sick - won't drive till she gets new insurance). Feels like she's gotten the shaft.
Is there anything she can do?
thanks
RA

 

[lwpat]

File a complaint with the state insurance commission. Other than that there is little that she can do unless she wants to file against them in small claims court. I have done that on a similar occassion and actually won to my surprise.

They can refuse to insure her or to put her in a high risk bracket for many reasons, usually too many speeding tickets.

The refund check should have put her on notice. Since she only paid them for auto insurance then that is all the refund could have been for.

 

[RAnn]

Thanks for your answer. She has called the MD insurance commissioner but I don't know the outcome of that.
Unfortunately when she got the check from Allstate (not her check back) she wasn't thinking since she was upset about the original house falling through. And there wasn't any documentation with the check.
She has had no tickets or infractions - ever - so it can't be that she's a bad driver. (She's 56 yrs old)
Apparently, MD office transferred her file to DE. DE cancelled policy instead of transferring file back to MD which should have been done. (When she called and told them). When she talked to the 1-800# - they couldn't even find her in the system. Then on Saturday - they told her they are refusing to reinstate her and that there are no appeals.
Bottom line is - no one at Allstate wants to take responsiblilty for making a mistake.
RA

 

[NYClex]

Does she have an insurance agent? Sometimes these people have a better connection to the bosses in a company than the people who work the 1-800 numbers.

 

[RAnn]

she went through him first - said it was out of his hands and he couldn't (i.e. my interpretation wouldn't) do anything. (nice huh after 12 yrs)

 

[RAnn]

Update

After investigation by the Maryland Commisoner of Insurance they deemed that Allstate was in the wrong and they must correct the problem. Since she already has aquired insurance from Progressive and would certainly NOT got back to Allstate but her rates will now go back down and any MD DMV points/charges are to be removed.
One for the little guys!!!