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!


Answer:

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
Hector