Allstate Insurance FAQ

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• An object damaged my windshield and I am unable to determine where it came from. Am I covered for this loss?
   
• Can my insurance company deny a claim for damages to my auto if the principal place of garaging listed on my application is false?
   
• Is my insurance company required to notify me of its decision to cancel my policy?
   
• What can I do if I actually receive a cancellation notice?
   
• Who is liable for the storage charges on my damaged auto when there is a dispute as to the amount of the claim payment?
   
• May an insurance company request a down payment in advance when I purchase or renew an auto insurance policy? And is it possible to pay my premium monthly?
   
• If I own an auto with collision and comprehensive coverage, will my insurance apply to the rental of another private passenger auto?

Answers to the Allstate Insurance questions

AN OBJECT DAMAGED MY WINDSHIELD AND I AM UNABLE TO DETERMINE WHERE IT CAME FROM. AM I COVERED FOR THIS LOSS?

Yes, if you have comprehensive insurance you are covered for the full amount of the loss, unless you opted for a $100 deductible for glass breakage. The $300, $500, or $1000 deductible, or whatever you may have selected for comprehensive coverage, does not apply to a glass loss.

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CAN MY INSURANCE COMPANY DENY A CLAIM FOR DAMAGES TO MY AUTO IF THE PRINCIPAL PLACE OF GARAGING LISTED ON MY APPLICATION IS FALSE?

Yes. If you or someone on your behalf gives false, deceptive, misleading or incomplete information in any application and if such information increases the insurance company's risk of loss, then your company may refuse to pay claims under any or all of the Optional Insurance Parts of the policy. Such information includes the description and place of garaging of the vehicles to be insured, the names of the operators required to be listed and the answers given for all listed operators.

In the event that you have moved since you filled out your initial application, promptly notify your insurance company and the Registry of Motor Vehicles of your new address.

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IS MY INSURANCE COMPANY REQUIRED TO NOTIFY ME OF ITS DECISION TO CANCEL MY POLICY?

Yes. Your company must send you a notice at least 20 days prior to the effective date of the cancellation. A notice sent by regular mail with a certificate of mailing receipt obtained from the Post Office is considered sufficient. A certified or registered mail with a return receipt is no longer required.

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WHAT CAN I DO IF I ACTUALLY RECEIVE A CANCELLATION NOTICE?

You can pay the exact amount called for on the notice or, if you feel that the cancellation is unjust, you may submit a written complaint to the Board of Appeals at 470 Atlantic Avenue, Boston 02210-2223. This must be done prior to the effective date of cancellation.

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WHO IS LIABLE FOR THE STORAGE CHARGES ON MY DAMAGED AUTO WHEN THERE IS A DISPUTE AS TO THE AMOUNT OF THE CLAIM PAYMENT?

The insurance company is responsible for paying storage charges until it makes a reasonable offer to settle the claim. However, if the consumer disputes the amount offered and the company revises its offer, this does not necessarily mean that the original offer was unreasonable. Disputes over what is reasonable can be resolved with your company through the process described in your insurance policy. You can also submit a written complaint to the Division of Insurance if you are unable to settle the dispute.

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MAY AN INSURANCE COMPANY REQUEST A DOWN PAYMENT IN ADVANCE WHEN I PURCHASE OR RENEW AN AUTO INSURANCE POLICY? AND IS IT POSSIBLE TO PAY MY PREMIUM MONTHLY??

Your insurance company may request up to a 30 percent down payment of the annual premium prior to the renewal or issuance of your policy. Most companies do offer a monthly type payment plan for the balance of the premium or something similar. You should check with your company to see what options are available to you.

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IF I OWN AN AUTO WITH COLLISION AND COMPREHENSIVE COVERAGE, WILL MY INSURANCE APPLY TO THE RENTAL OF ANOTHER PRIVATE PASSENGER AUTO?

Yes, however there may be substantial limitations. Your collision and comprehensive insurance are transferable to a substitute rented or borrowed private passenger auto that is damaged while it is being operated by you and by members of your household. 

Many auto rental companies require that you reimburse them for the REPLACEMENT COST (RC) of any damages incurred to their vehicle.  Your auto policy only provides for ACTUAL CASH VALUE (ACV) coverage, minus the deductible.  ACV is equal to Replacement Cost minus depreciation.  Since your Collision/Comprehensive coverages are on an ACV basis, you can be held liable for the Depreciation amount, plus, of course, the deductible.

Also, the insurance company will calculate the value of your covered vehicle in the amount they offer for coverage of a damaged rental vehicle.  If you own a five year old compact car, you cannot expect the insurance company to reimburse a rental company for a brand new top of the line SUV or Sedan you may be renting.  You will be held responsible for the difference, which could be quite substantial.  Also, the rental company will most likely expect you to pay their full rental fee for any period of time their vehicle is undergoing repairs.  Unless you have Substitute Transportation coverage, you will be held responsible for these costs.  If you have Substitute Transportation, the insurance company will pay up to your daily limit for rental coverage as determined by a company adjuster.  This amount may be less than the actual rental cost, and the rental company may decide the car is not driveable for a longer period than the company adjuster, leaving you once again responsible for the shortfall.

There is no coverage under your policy for family friends or significant others. You should be aware that your coverage is available only if you rent or borrow a private passenger auto in the United States or Canada.

You should also be aware that your policy does not provide coverage for borrowed or rented trucks. If you are renting a truck, you should check with the rental company regarding the purchase of collision and comprehensive insurance. If you are borrowing a truck, make sure you determine whether or not the owner has purchased collision or comprehensive coverage. If the owner does not have insurance, you may be personally liable for any damage to that truck which is the result of your negligent operation. Last, if the use is for business rather than pleasure, call your agent first. Business use is usually not automatically covered. In any event, remember that the coverage is for what is basically a substitute vehicle, not an additional one.

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