What happens if I disagree with Allstate’s decision on my auto insurance claim?

It can be shocking when Allstate, one of the best affordable auto insurance companies in the U.S., denies or underpays your auto insurance claim. After sustaining an accident or another type of loss, it is the last thing you want to hear while waiting for compensation.

What happens when you disagree with Allstate’s decision on your auto insurance claim depends on what you do next. It’s important to reflect on why they denied you, but if you strongly oppose the decision, there are steps you can take.

What to Do if You Disagree With Allstate’s Claim Decision

You can act as soon as you hear that your auto insurance claim has been denied. The following steps will guide you toward clarity or possibly re-evaluating your claim.

• Review your policy: Are you sure that your loss coincides with the type of auto insurance coverage you have? For instance, if your car was stolen or damaged by the weather, Allstate cannot assist you unless you have comprehensive coverage.
• Talk to an Allstate representative: Calling Allstate might be informative. They will explain why they are denying your claim and tell you how to file an appeal if you disagree.
• Notify Allstate of your intent to file an appeal: Allstate will usually mail you a written notice of denial and include instructions on filing an appeal if you plan to contest. Use the contact information on that letter to let Allstate know of your intent to appeal.
• File an appeal: Filing an appeal involves writing a detailed letter or email. Make sure you summarize the events and explain why you don’t agree with Allstate’s decision. Include all relevant evidence about your claim. Double-check that you didn’t miss evidence when you originally filed your claim with Allstate, such as police reports, witness statements, repair estimates, photos, or medical bills.
• Consider alternative dispute resolution: If Allstate replies by denying or underpaying your claim again, you might hire a lawyer to help you resolve the dispute without going to court.

Many people accept when Allstate denies or underpays a claim and choose to eat the cost of repairs, but you should always take action if you disagree with a claim decision.

Why Allstate Might Underpay an Auto Insurance Claim

If Allstate compensates you for less than you expected, double-check your policy. It will include a coverage limit for how much Allstate will pay for an accident or incident outside of your control.

As a result, you can pay a higher monthly premium to avoid a situation where Allstate underpays for your claim due to coverage limits. Comparative negligence may also come into play. This is when you are partially at fault for an accident, and Allstate reduces the claim amount by the percentage of fault assigned to you.

Furthermore, what auto insurance companies don’t tell you is that representatives have a profit motive. Some adjusters may strive to reduce the amount Allstate owes you simply as part of a business model. You can consult a lawyer about possible underbidding if you cannot find another reason for claim underpayment.

Why Allstate Denies Some Auto Insurance Claims

Allstate may outright deny your auto insurance claim for several reasons, such as:

• Inadequate documentation: If you do not provide sufficient evidence to support your claim, such as photos, documentation, or police reports, Allstate may deny your claim.

Read more: What information do I need to file an auto insurance claim with Allstate?

• Misrepresentation: Allstate may deny your claim if you provided false or misleading information when purchasing your policy or filing a claim. Learn more about auto insurance misrepresentation.
• Policy exclusions: If you file a claim for an incident your plan doesn’t cover, Allstate will deny your claim. Learn the difference between comprehensive vs. collision coverage.
• Lapsed insurance policy: This is when you don’t have valid auto insurance at the time of an accident or incident. This can occur if you don’t pay your monthly premiums on time or if your policy goes into effect after your car sustains damages.
• Accident involving an uninsured motorist: If you are in an accident with an uninsured driver and don’t have uninsured motorist protection, Allstate may deny your claim.

Remember that Allstate may have made a mistake in processing your claim. Adjusters are often under time constraints and sometimes approve and deny claims too hastily.

Disagreeing With Allstate’s Decision on Your Auto Insurance Claim: The Bottom Line

Always give yourself and Allstate the benefit of the doubt if you disagree with your auto insurance claim decision. Allstate may have made a mistake, or you may have been unaware of the details of your policy. You can file an appeal if you suspect Allstate is wrong about your claim.

Read more: What do I need to do to cancel my auto insurance policy with Allstate?