Insurance Company Deceives and Overcharges

Paul Grieco

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Allstate Insurance claims to be "the good hands people". Those "good hands" seem to be deceiving their own insureds and attempting to raise premium rates without the proper justification. In one state-Texas- Allstate is being held accountable.

Litigation has resulted in a court order holding Allstate accountable for ripping off its policy holders. The order requires Allstate to refund to policyholders the amount overcharged since December 2004, including interest on the overcharged amount at the annual rate of 11.25 percent. The Texas Insurance Department estimates that the amount of refunds currently owed to policyholders is more than $56,000,000. This was determined after the Texas Insurance Department discovered that Allstates rates were excessive, unreasonable and discriminatory in nature. Policy holders should routinely review their policies and if they have any concerns about what their insurance company is doing ask questions and report any questionable conduct.