I recieved a misquote from Allstate Insurance because of multiple errors that were made on their part. I filed a complaint with the Michigan State Department of Insurance and Financial Services and they are currently performing an investigation on my complaint.
At the moment I have an outstanding balance of ~ $400 from when I cancelled because Allstate never took the monthly payments out of my bank account in the previous 2 months that I was with them for and I do not wish to pay them until the State finishes up their investigation.
So here are my 3 questions:
1) Can Allstate send my balance to a collections agency when I have told them that I am not paying anything until the State finishes up their investigation?
2) Can insurance companies legally raises your rates due to a misquote that was their own fault i.e. I gave them the proper documents but they typed the information in incorrectly.
3) If Allstate does send my balance to a collections agency, can I fight it so it does not go on my credit report?