In North Carolina, some 70,000 homeowners are on the verge of losing their insurance coverage if they do not purchase auto insurance from Allstate. The large insurer announced last year that it would be dropping customers who did not bundle their property and auto insurance together through the company. Allstate’s plan affects nearly 50,000 consumers throughout the state, but the North Carolina Farm Bureau Mutual Insurance Co., the third largest property insurer in the state, is following Allstate’s example and may drop roughly 20,000 policyholders if they do not get their auto insurance through the company.
According to Allstate, the plan comes from an effort to remain financially strong in a turbulent economy. The insurer accounts for more than 400,000 policyholders, all of which demand to have their needs met. The state’s Department of Insurance claims that it does not have the authority to stop insurers from dropping consumers, but notes that the act could be somewhat damaging to the state’s economy.
Those that choose not to bundle their coverage with Allstate may be able to find more lenient prices from the N.C. Farm Bureau Mutual Insurance Co. The prices offered by the insurer are likely to be very similar to those offered from Allstate, however, which may add some stress to consumers looking for alternatives. Plans that will be affected by this plan are scheduled to be renewed on June 19, 2012.
