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Allstate insurance claim denied

All state denied my stolen car insurance claim. They stated none of the security features were by passed there for the car could not have been stolen.

The car was stolen then smashed up an caught on fire. There was virtually nothing left of the car just metal frame and engine, even the rims burn off.

My question is can they deny me based on that information. Also if they denied me will my gap insurance pay off my current car loan? Thanks!


Hello There,

This is a very bad situation. If there is no coverage regarding a stolen and fire claim, one of the only possible deduction is that there is insurance fraud.

My experience is that insurance companies do not deny claims like this one unless they have very strong evidence that the insured had something to do with the loss.

The insurance company must and has a duty to specifically point to those facts that incriminate you. The fact that safety features were not trigger can mean that a good thief took the car (disabling all the features).

Who knows, but an inference like that (no safety feature means = no coverage) can only mean 3 things:

1. They have evidence that the insured had something to do with you

2. The insurance policy clearly states that in order for them to pay for a theft loss, the safety features of the vehicle must be triggered.

3. The insurance company did not do a good investigation and they are making an incorrect inference.

The insurance company must exactly and in detail tell you why the claim was excluded. This means that the claim was denied based on what the policy says – Either there is an specific exclusion like the one expressed on # 2 above.

Or there is another exclusion based on your conduct (intentional damage) that left you with no coverage. Remember, they have the burden of showing that either exclusion applies.

This is a general overview and it is likely incorrect. Please contact with an attorney before you do anything.

Good Luck

Comments for Allstate insurance claim denied

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May 02, 2011
Auto theft and Arson Allstate Denied Claim----SURPRISE
by: Carol

-=I had Allstate insure me for 18 years and just when you really need them to help they shit on you. The commercial on tv makes me want to vomit, your in good hands how about your hands are tied. I hired an attorney and still they said my husband and I stole my car and set it on fire. It was stolen from my driveway at night and turned up in the woods 2 weeks later. The car was burned beyond recongnition. I willingly took a poly, allstate said "it could have been your lawyers friend and did him a favor". I passed 100%. Allsate said "I think someone got drunk and drove it into a ditch". (meaning me or my husband).I said "that's what insurance is for".
They tried every angle from financial hardship, which they couldn't find anything to entering into an auto loan and then you couln't afford the payments. I was NEVER late on 1 payment in 4 years. So I stopped making payments on auto loan and the insurance. What you going to do "Wunderly" repossess my car. I gave it up to the Lord. He promises "to not forsake his people". A statement arrived 2 weeks later saying my auto loan was paid in full thank you.
Goodness wins over evil once again. The remainder of my loan wa $12'000. Amen

Feb 24, 2009
Denied Claim
by: Anonymous

Insurance companies are in business to get over on you... They (most companies) will take any route they can to deny your claim. If they can they will try and intimidate you, they will intrude into all of your personal business. Don't back down, hire an attorney if you must. The insurance company will usually see you can't be intimidated and won't push whatever flimsy evidence they have. Unless of course you did steal and burn your car in which case hopefully you have better evidence then the insurance company... or at least have the adjusters kid in your basement.. then see who wins

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