Allstate’s Your Choice Auto Program No Longer Sold

Based on a press release from Consumer Watchdog, a nonprofit group, the Allstate Insurance decided to stop selling its “Your Choice Auto” (YCA) insurance program in California.

In the YCA program, drivers are charged more than 15 percent in premiums although they are promised the policy premium will not increase due to future tickets or accidents.

However, Consumer Watchdog believes that the benefits are not worth the extra fee. Moreover, the consumer group discovered that Allstate took a total of $20 million annually in additional premiums.

In addition, it was also found out that Allstate was violating the good driver discount law of California, unjustly discriminating drivers in spite their excellent driving record, marketing a misleading product and encouraging reckless driving.

According to Todd M. Foreman, in-house counsel for Consumer Watchdog, the YCA program became a cash cow for Allstate through asking customers to pay for more than they should be paying as stated in California’s good driver law. When Allstate knew that their executives might be cross-examined regarding the costs and benefits of YCA, they ultimately decided to take the product off the market.

However, other states with similar YCA programs still sell the product. In other words, if you are looking around for car insurance and you come across an Allstate YCA policy, think twice before making your final decision. If you have one at present, it might be better to shop around for less expensive alternatives.

Even though insurance companies in several states price their auto insurance policies using credit scores, it does not imply you cannot look around for other car insurances even if you have poor credit.

Don’t be discouraged if you have been repeatedly rejected for a conventional auto loan. Auto Credit Express specializes on searching the most appropriate dealer for the applicant with car credit problems. They make sure that they will have a chance to get approved for an auto loan.

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