Auto and Car Insurance

allstate auto insurance claim question?

My leased car was recently keyed. It wasn't very noticeable but still needed to be fixed. I took it to an evaluator/adjuster at allstate and they gave me a check for 900+ dollars to fix the scratch. I still have yet to get it fixed and I've spent the money already. They sent me a notice saying if you do not get the car fixed it will prevent any fullfullment of any future claims and I have to submit paperwork to the dmv about the scratched vehicle. My question is could I just cancel my allstate policy and get a different plan w/o having to produce any paper work that the scratch was fixed? Or would they somehow flag me and prevent me from canceling my plan? P.S. I could probably fix the scratch with wax or scratch remover (really not too bad). Thanks

Public Comments

1. The paper is just saying you cant claim it twice. They will deny if you try to claim it again. Because the car is leased though you need to make sure it is gone good or it will come back to bite you hard when you go to return the lease. I don't know if Allstate has different policies but as far as I know you dont have to provide paperwork that it was fixed....i know my husband does body work and he fixed ours himself anytime anything happened and State Farm was fine.....as long as you dont down the line try to claim it again...even through another company. It is insurnace fraud....jail time. Call Allstate and tell them your having a friend fix it, and see what they say to make sure they dont have any special policy stipulations
2. First, if the vehicle is leased they should have included the lessors name on the check, which would have prevented you from cashing it. If they do not include the lessors name, the lessor would have the ability to file another claim with Allstate for the same loss and Allstate would be required to pay... again. Of course, Allstate would then attempt recovery from you for that second amount. Allstate cannot refuse to honor your existing contract/policy on future claims as those situations are unrelated. They actually stated this in a letter? If they did, it's a huge mistatement. My guess is that the adjuster screwed up big time by not putting the leasors name on the check and now they are trying to strong arm you into having it repaired so that they don't need to pay the same loss a second time. But it might also be said that you may have commited insurance fraud by not using insurance funds for the repairs the your vehicle. This is a grey area and I've never heard of it being inforced in anyway... nor do I know that it could be inforced or that it applies. In any case, expect your policy to be non-renewed.
3. It would still be existing damage, whether you went with another company or stayed with Allstate and that would be excluded in the event of any other claim. You don't have to notify the DMV of the scratches - but Allstate probably notified that $ was paid out and that will go on your record. Depending on what state you are in, it should have been paid under comprhensive and shouldn't be held against you as far as your rates go. You can cancel your policy whenever you want.
4. They cannot force you to prove you had the vehicle repaired. If they made the check to you and you alone, the money is yours to do with as you please. However, since the vehicle is leased, the check should have been made out in both yours and the leasing company's names.