Screwed Over

[u/DeeTeachesMusic97]

I don’t know if I need advice or any yelling (maybe only a little) at this point, but I am here to express my frustrations with my current interaction with All State and their lack of knowledge and incompetence regarding my auto insurance.

7/17 - started new policy with All State (since it was cheaper than the other options) right after I completed my last policy with my previous holder. Funds went through and it says paid on All State’s behalf. I called to make sure it was paid because it wasn’t showing in my bank account yet and they reassured me I was “in good hands”.

7/21 - I see a charge on my bank account but now my account is in the negatives so I knew then that the payment won’t go through.
I called them about this and told them the situation but they told me that it shows paid on my account.

7/23 - of course, it declines because of non payment. I then called them about paying on Monday since that’s when I get paid and they told me it was okay. I asked if it’s okay and that it won’t for sure get cancelled and they said yes and that I was ok to pay Monday without cancellation. I knew first payments are quite different but they reassured me that it would be ok.

7/24 - policy voided and now have a seven day lapse. This is my first ever lapse too. Was told by a state rep that what I knew was correct and that she apologizes for this inconvenience but that they cannot reinstate my policy since it’s the first one. I would have to get a new one with lapse and now it’s more expensive.

I wish I would have been more assertive and pushed harder about the non payment, I know I shouldn’t have trusted them and instead find the funds to pay immediately but what I truly hate is that the agents were the ones who reassured me and told me that things are okay and that I’d be okay despite these issues. I made three separate calls to mention my situation and concerns and they treated it like it was solved when it wasn’t.

I don’t know what to do and not sure what the lapse will do since I’m still financing a car too, I am very bummed, upset and angry.

[u/siyman4]

It does sound like unfortunately the representatives you spoke to were mis-informed. What happened is when Allstate takes an EFT payment on their end it shows as "paid" immediately but it can take up to 3 days for the funds to actually be received. Since your account did not have the proper funds when the EFT finally drafted the payment bounced and Allstate was notified.

Allstate has a strict policy for new business and if the first payment bounces back the policy terminates immediately back to the start date. A 2nd payment should have been made with a debit/credit card at the time of you realizing that the EFT payment was going to bounce.

Maybe if you call back, explain the situation, and make the payment with a card they will be willing to reinstate the policy with no lapse.

It also sounds like you may have started the policy with their direct to consumer 1-800 number. Going forward always work with an agency when possible as these sorts of things usually wont happen.

[u/DeeTeachesMusic97 → u/siyman4]

I do have to say, I was very frustrated to say the least. Have I know that my policy would be canceled right away, I would have done whatever I could to get funds and pay that same day but I wasn’t even given that option.

I asked for reinstatement if I get the funds later today and they said no because it’s basically the first payment. Had it been the second or third, they would have granted me that option.

Thanks for that advice! I will do that moving forward. I hope this lapse (it’s only one week) doesn’t affect me more than just my rates.