[Sleeper in Seattle]

I suffered an attempted theft with another vehicle on 9/27/2007

I have a stated value insurance rider, covering my acura integra for up to $30,000 incase of a total loss. This coverage costs me about $100 extra per month to have everything on the vehicle covered.

First, Allstate immediately denied coverage. So I contested.

Second, the did a insurance fraud investigation that lasted until 1/22/2008, when they found that NO insurance fruad is being commited. They ran my credit reports, demanded all bank, retirement, and every financial statement, every cell phone record, and receipts of all the missing parts. I gave them everything they asked for.

Third, I got a certified letter in the mail today saying that they aren't going to cover me becuase:

Allstate, says that "these coverages do not apply to (14) loss to any custom parts or equipment designed for racing which is installed in or upon your insured vehicle. This includes, but is not limited to nitrous oxide systems, roll cages, and air intake modifications."

Basically, any and every part that isn't factory is getting denied.

I'm filing a complaint with the State insurance commisioner- as follows:

I have been paying about $100 extra per month for the last four years for extra coverage on my 1995 acura integra. The extra coverage is a blanket $30,000 stated value policy rider- I was told that it covers everything. A tree falls on my car, it's stolen, parts are stolen from it, it's in a collision.

Allstate, says that "these coverages do not apply to (14) loss to any custom parts or equipment designed for racing which is installed in or upon your insured vehicle. This includes, but is not limited to nitrous oxide systems, roll cages, and air intake modifications."

I found on September 27th, 2007 that my Acura integra had been broken into and parts were stolen. I called the police and they came out to give an incident number and collect finger prints. They got a good one on the rearview mirror. I then sat on hold for about five hours trying to get through to the claims department. Then, I filled my claim online instead of waiting on hold. I was notified by mail a couple days later that Allstate will take care of everything...

Allstate, initially said they wouldn't cover me because the parts weren't stock. Then they accused me of committing insurance fraud and took three months to investigate that. Pulling my credit, demanding bank and all financial records, telephone records, paystubs, and other personal information to make a case against me.

The investigation proved that I wasn't committing fraud. The investigator, Tim Sweeney, completed the fraud investigation 1/22/08.

I tried contacting Mathew spray through email and my replacement agent Sandra Tebow- as my agent who sold me the stated value policy , Steve Blaze, has left allstate. Sandy responded saying that claims management is going contact me shortly, that was yesterday.

Today, I got certified mail stating that they will not be able to pay for the items stolen from my car, from Danika Chestnut. I called and talked to the file manager Linda Anderson, and then talked to her supervisor Kathy Hail- both of whom stated that there was nothing that could be done to help me and that the parts stolen from my car were not covered. I asked to speak with their supervisor and got a hold of Rob Arnold. Rob was the first person who was nice to me and listened.

My former agent, Steve Blaze, who signed me up for a $30,000 stated value rider policy came into my place of work, and I mentioned to him that Allstate was still investigating the loss and saying I wasn't covered and that he knew nothing about the aftermarket parts on my car. He said that he knew about everything and that he would call my current agent (Sandy Tebow) that he transfered my policy to manage, when he left allstate.

Rob said the investigation said they had statements from Sandy and Steve saying that they knew nothing about the parts on my car. I know sandy didn't, as my file was just transfered to her from Steve. I asked Rob why I would pay an extra $100 a month for the last four years for coverage of nothing? He said he couldn't explain it and that he needed to talk to Steve Blaze about what he told me was covered. He said that he should be able to get back to me on monday.

Hopefully, we will be able to resolve this.

Thank you,

James

[USNSTI]

Im seeing some problems based on what you posted. You stated that your $30k rider covers a total loss. Yet you also state it was an attempted theft and some parts were stolen. Not sure how a total loss rider covers some stolen parts? I am sure that is what allstate is thinking. Not trying to be a dick, I am just trying to help figure out the situation.

[eroc263]

That really sucks man. I'll be sure to get extra coverage on my STi when I get my new stuff installed and i'll make sure that the stuff will be replaced in such a tragic event. I too have Allstate and have loved them since I joined but this has been a good reminder to get that done so that I won't have to go through what you are. Insurance companies are one of the richest businesses in the world and yet they can even pay out when they should. Sad...... Good luck with your case.

[KiR DieseL]

If you did in fact declare all of your customizations to them and they wrote you an insurance policy they BY LAW have to cover the whole thing..

If not you have to goto the state and deal with them and they will conduct and investigation.

[Sleeper in Seattle]

My agent that I signed up with said that everything would be covered, everypart. He was really cool and knew about all the mods. We talked about him getting a supercharged mustang cobra- then he got a Nissan Sentra SE-R instead. I would hang out in his office telling him about how the car was coming along and that I was having this or that done to it. It rarely drove it becuase it was always under the knife.

He said that as long as I had receipts, Allstate would pay out up to the stated value, but no more. If I got rear ended and my stereo got damaged, if it were stolen, no matter what! Every part would be covered.

Of course, I always assumed it covered everything becuase that's why I bought the coverage.

Allstate is saying that becuase the parts were "custom parts or equipment designed for racing... This includes, but is not limited to, nitrous oxide systems, roll cages, and air intake modifications." that is why they aren't covering me.

They aren't saying that I wasn't paying for the coverage, nor that it doesn't cover the whole car and everything on it up to the value of $30,000, but that the parts were designed for racing. And that alone is the reason why they are are not covering me.

They also state that both my former agent and the lady that took over my policy, both stated that they never said that these parts would be covered. I understand the new agent that was given my policy when my original agent signed me up for the extra coverage, didn't know about it. I'd never even talked to her before this incident.

My former agent knew everything. A friend of mine said that Allstate may be commiting fraud and that if I can get a hold of my former agent, and get him to sign a sworn affidavid stating that he was aware of the parts and that is what he signed me up for, then they would have to cover me.

Learn from my pain!!!!!!

I would have your agent sign an itemized list of every part you want covered in case of a loss- that way they can't back out and say that they never said that those parts weren't covered.

[iluvsti]

Dang that sucks man, GL!

[KiR DieseL]

Originally Posted by Sleeper in Seattle

My agent that I signed up with said that everything would be covered, everypart. He was really cool and knew about all the mods. We talked about him getting a supercharged mustang cobra- then he got a Nissan Sentra SE-R instead. I would hang out in his office telling him about how the car was coming along and that I was having this or that done to it. It rarely drove it becuase it was always under the knife.

He said that as long as I had receipts, Allstate would pay out up to the stated value, but no more. If I got rear ended and my stereo got damaged, if it were stolen, no matter what! Every part would be covered.

Of course, I always assumed it covered everything becuase that's why I bought the coverage.

Allstate is saying that becuase the parts were "custom parts or equipment designed for racing... This includes, but is not limited to, nitrous oxide systems, roll cages, and air intake modifications." that is why they aren't covering me.

They aren't saying that I wasn't paying for the coverage, nor that it doesn't cover the whole car and everything on it up to the value of $30,000, but that the parts were designed for racing. And that alone is the reason why they are are not covering me.

They also state that both my former agent and the lady that took over my policy, both stated that they never said that these parts would be covered. I understand the new agent that was given my policy when my original agent signed me up for the extra coverage, didn't know about it. I'd never even talked to her before this incident.

My former agent knew everything. A friend of mine said that Allstate may be commiting fraud and that if I can get a hold of my former agent, and get him to sign a sworn affidavid stating that he was aware of the parts and that is what he signed me up for, then they would have to cover me.

Learn from my pain!!!!!!

I would have your agent sign an itemized list of every part you want covered in case of a loss- that way they can't back out and say that they never said that those parts weren't covered.

Dude i work in insurance... They BY LAW have to mail you a hardcopy of your coverages and what is covered and what not is covered... You can go by word of mouth... go look in your policy packet and binder from the insurance company and see if theres something that says that... Theres certain modifications that might not be covered but rims, stereo, nav and things like should be covered... Look thru ur papers.

[fourseasonsandles]

Originally Posted by KiR DieseL

Dude i work in insurance... They BY LAW have to mail you a hardcopy of your coverages and what is covered and what not is covered... You can go by word of mouth... go look in your policy packet and binder from the insurance company and see if theres something that says that... Theres certain modifications that might not be covered but rims, stereo, nav and things like should be covered... Look thru ur papers.

Kir already covered what I was going to say. I would suggest you read your policy very carefully to see what exactly is going to be covered. It is/should be all in your policy.

As Kir stated, they have to mail you a copy of your policy. It is a contract. If it is written in the policy that your parts were not covered, your not going to get coverage. Or if there are exclusions to any after market parts, they are also not going to be covered.

If what you have quoted from Allstate is directly from your policy, it sounds to me that they are right on and you are not going to have coverage for your parts.

Edit: Also one last thing. Depending on your agent, dont alway go by word of mouth. Their are agents out there that will sell you anything just to make a buck. They may tell you that you shouldnt worry and all your parts etc are covered, unless you get it in writing, you are SOL.

<--Also works in insurance (just not for Geico...kir)

[Sleeper in Seattle]

So still no word from the Supervisor, and he said he's call me yesterday.....

[fourseasonsandles]

I would call them. Dont leave it up to them to get back. Insurance companies handle thousands of claims at a time. Yours will not take priority unless you make it your priority.

When you do call, dont be an a**hole. It will get you nowhere quickly. Be polite and they adjuster or supervisor will be much more willing to help you out.

We always hear the saying at work, "the squeaky wheel gets the grease." The more you call and try to work things out, the faster they will work to "get rid of you."

I would also like to know what exactly you policy says though. Any chance of scanning it or typing up the parts about your after market parts being covered?

[holycow]

Unfortuantely if in your writen policy, the one sent to you and the one you agreed/signed on, specifically has those exceptions writen into it, they are 100% correct by denying coverage.

However buddy buddy / homie homie you were with some previously employed agent, it makes no difference to what is actually covered by your policy. Forget all that "we used to chat and he knew all my mods" crap.... What is actually WRITEN, in TEXT, in the policy details they sent you? That is the only thing that matters, and that is your responsibility to be familiar with. It's not the companies fault that you purchased unneeded coverage.

[Sleeper in Seattle]

So I went through my policy and and all the addendums that they sent, and for the life of me, I couldn't find anything sayign the parts are excluded. In my policy and on my statements, it is just the comprehensive coverage that states that my car is covered for up to $30,000 in loss or damages....

Could they have forgotten to send me the addendum?

I remember calling Allstate after signing up for the policy and asking if every part on my car was covered, and the cust service rep said that with my extra coverage, I was covered for upto the paid dollar amount stated in my limit as long as I had receipts. I wonder if there is a record of that call????

Hmmmm....

[fourseasonsandles]

There most likely is not a record of the call. If Allstate is anything like us as State Farm, we log every single conversation in claims, but not when it is a simple customer service call. Also I doubt the agent that sold you the policy logged anything about it. It wouldnt hurt to check though.

Typically as stated before, you are only insuring a stock vehicle when you purchase a policy. If you wanted all of your after market parts covered, I would think that you would have to have a listing of the aftermarket parts that are covered. I cant say for sure as I dont work in underwriting or have anything to do with the policies, so I am only taking an educated guess at this point.

I dont think that you should be looking for an exclusion of your aftermarket parts, but you should be looking for something that states that your parts are actually covered in the policy. I would call up your Agent or even maybe take the policy to an attorney to have them review it with you. Policies can get a little crazy to read and they may be able to find something that you could not. Just a suggestion.

Otherwise, try shooting RAS_STI a PM. I know he sells policies and may be able to help you find what is and is not covered. If I had a copy of the policy I might be able to help you out, but Im pretty sure that isnt going to happen. Good luck

[Sleeper in Seattle]

Thanks for all your help guys!

I had escalated everything to a supervisor and here's his response:

"James, I was finally able to reach Steve Blaze last night and discuss this situation with him. He said that everything he discussed with you regarding your stated value policy was part of the policy and that his recollection is that you understood what was in the policy. He said the stated value policy is what it is and he never added anything to it verbally. He said he was aware you had aftermarket equipment on your vehicle, but he insists he never told you that Allstate would pay for anything not covered by the auto policy. The stated value policy had nothing to do with any extra or racing parts you added to your car. He denies telling you that the stated value policy would cover racing type parts. He said you signed the paperwork for the policy and that the policy speaks for itself.

At this point, it is Allstate's position that our disclaimer of coverage is correct, and we will not pay for the stolen equipment.

Rob Arnold
Allstate Insurance"

So that's Allstate's stance....

I've submitted a complaint to the insurance commissioner's office and they have responded to my complaint and cc:ed me in a letter giving Allstate 15 days to respond plus 5 days for mailing time.

So allstate is saying that my agent misrepresented what was sold to me, and I know I specifically asked him if everything on my car would be covered. He responded by saying yes, everything would be covered as long as I could provide proof of purchase.

Can I sue my former agent?

A question that continueously goes through my head, is "Why would they even bother with a three month fraud investigation if I wasn't covered anyway?"

Another question, "Why would I insure not a single part on my car, which is what actually increases the value of my car and yet purchase a stated value policy that states the value of my car as being $30,000?

What avenues would you reccommend to take advantage of the first amendment, and let everyone know how bad AllState is?

Thanks!

Hopefully the State Insurance commissioner can do something....

[fourseasonsandles]

Sorry to hear about your response. You can filed a complaint, but what is written is what they will cover. It may have been a misunderstanding, but it is correct that they will only cover what is written in the policy.

It is unfortunate that this happened this way. Take it as a lesson learned to always read before you sign. Many people I talk to on a daily basis also do not know what their policy does and does not cover.

The insurance department will side will Allstate and unfortunately you will not win your insurance department complaint.