I guess Allstate is showing an ad in Texas that doesn't apply to us. I have yet to see it, but it has Texas Watch up in arms. The ad depicts a family who loses their house because their auto insurance doesn't cover all the damages from an accident. Texas Watch is saying that "The Texas Constitution (Article 16, Section 50) strictly prohibits the forced sale of a person's homestead except in narrow circumstances, clearly protecting homeowners from just the type of situation outlined in the Allstate television ad."

Full release in the permalink.

FOR IMMEDIATE RELEASE
Contact: Alex Winslow
August 31, 2005

ALLSTATE USES SCARE TACTICS IN ADVERTISING

Texas Watch calls on Allstate to pull ad down, asks Attorney General to investigate

AUSTIN – Allstate is currently running a misleading television ad in Texas media markets that is meant to scare homeowners into purchasing additional insurance coverage for their automobiles.

The ad entitled Totaled tells the story of a fictional family that the narrator says was forced to give up their home after an auto accident because their auto liability coverage was not sufficient to cover the damages.

"This ad is deceptive and false," said Alex Winslow, Executive Director of the consumer organization Texas Watch. "Allstate should take it off the air immediately."

The Texas Constitution (Article 16, Section 50) strictly prohibits the forced sale of a person's homestead except in narrow circumstances, clearly protecting homeowners from just the type of situation outlined in the Allstate television ad.

"A Texas homeowner would never be forced to sell his home because he didn't have enough auto insurance. Allstate should be ashamed," said Winslow. "This ad is nothing more than a scare tactic meant to deceive Texans into paying more for their already overpriced auto insurance."

In a letter to Allstate Insurance Company CEO Edward Liddy, Texas Watch encouraged the company to stop airing this ad in Texas.

Texas Watch has also asked Texas Attorney General Greg Abbott to investigate the false claims made in this advertisement and to take appropriate action to protect consumers from this type of deceptive marketing in the future.

"Homeowners and drivers were forced to pay nearly $4 billion in insurance overcharges last year – including more than $850 million in Allstate overcharges," said Winslow. "Not only are policyholders forced to endure outrageous insurance overcharges, but now they are subject to false and misleading assertions by their insurance carrier."

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N. Alex Winslow

Executive Director

Texas Watch

1300 Guadalupe Street, Suite 108

Austin, Texas 78701

nawinslowATtexaswatchDOTorg

www.texaswatch.org