Allstate Roadside Assistance Membership for Free?
This morning on my way home from dropping my kids off at school, I heard a radio commercial about Allstate Insurance Company offering free lifetime roadside assistance membership. Just call 1-800-Allstate or contact a local Allstate agent. This offer is free to everyone, including people who do not have one single insurance policy with Allstate. (I looked it up: apparently this started in early October 2011.) Wow.
This is a great offer. I mean, I love free stuff as much as anyone else I know. One that can help me out when I am stranded on the side of the road with a flat tire would be simply wonderful.
But wait: I already have automobile insurance through Allstate. It is coverage that I pay for. My policy includes towing coverage and roadside assistance also. Allstate ain’t cheap either. So should I cancel those coverages; take them off my policy and sign up for the free roadside assistance?
That sounds like a good idea. This free coverage will help with towing, flat tires, or dead batteries, or even if a person locks their keys inside their car. I am sure that it will sound like a good idea to a lot of people. Again, I love free stuff.
But what happens when people sign up for this free roadside assistance and then start calling the claims in? Allstate, my insurance company, is going to need to have the money to pay those claims. The company is also going to need to have employees to handle these claims and issue payment. I am sure that they will not be very time-consuming claims to handle, but nevertheless they will need at least some attention.
So how is this going to be paid for? Are my insurance rates going to go up so that Allstate can fund this “free” program? (It is actually not completely free since users of the service will need to pay a deductible or co-pay each time they actually use the service.)
Of course Allstate isn’t only doing this to be nice. There is something in it for the company: it is good press and will most likely generate an awful lot of new sales leads. It is a pretty smart thing for Allstate to do. In an era where people are really struggling to make ends meet, this is a nice gesture. Just please, Allstate, do not make it come back on your current policy holders; we are struggling too.
This article is approved for informational purposes and is not intended to take the place of competent local legal counsel.