You’ve been in a car accident that wasn’t your fault. You’ve filed a claim with Allstate, the other driver’s insurance company, expecting to get reimbursed for your medical bills, car repairs, lost wages and pain and suffering. But instead of getting a fair settlement offer, you get a letter from Allstate saying that your claim has been denied.
What do you do now?
If you’re in this situation, you might feel frustrated, angry and helpless. You might wonder why Allstate denied your claim and what you can do to fight back. You might think that you have no choice but to accept their decision and move on.
But don’t give up hope. You have rights as a car accident victim, and you have options to challenge Allstate’s denial of your claim. In this article, we’ll explain some of the possible reasons why Allstate denied your claim, and what steps you can take to appeal their decision and get the compensation you deserve.
Why did Allstate deny your claim?
Allstate is one of the largest car insurance companies in the US, with over 16 million policies in force. But it’s also notorious for being one of the most aggressive and stingy when it comes to paying out claims. In fact, Allstate has been sued multiple times for bad faith practices, such as delaying, denying or lowballing claims without a valid reason.
There are many possible reasons why Allstate denied your claim, but some of the most common ones are:
- Disputes over liability: Allstate might claim that you were partly or wholly at fault for the accident, or that the other driver was not liable for your damages. They might use evidence from the police report, witness statements, photos or videos of the scene, or their own reconstruction of the accident to support their argument.
- Lack of medical evaluations and other evidence: Allstate might claim that your injuries were not caused by the accident, or that they were not as severe as you claimed. They might use your medical records, statements from your doctors or experts, or their own medical examinations to support their argument.
- Claims that exceed what’s owed: Allstate might claim that your damages were not covered by the other driver’s policy limits, or that they were unreasonable or exaggerated. They might use industry standards, market values, or their own estimates to support their argument.
- Bad faith insurance adjusters: Allstate might deny your claim simply because they want to save money and increase their profits. They might use unfair tactics such as delaying your claim process, requesting unnecessary documents or information, misinterpreting your policy terms or state laws, or making lowball offers that don’t reflect your true losses.
What can you do if Allstate denies your claim?
If Allstate denies your claim, you don’t have to accept their decision as final. You have the right to appeal their decision and pursue your claim further. Here are some steps you can take to fight back:
- Read the denial letter carefully: The first thing you should do is read the denial letter carefully and understand why Allstate denied your claim. The letter should explain the reason for the denial, the evidence they used to support it, and how you can appeal it. If anything is unclear or missing from the letter, contact Allstate and ask for clarification or more information.
- Gather more evidence: The next thing you should do is gather more evidence to support your claim and refute Allstate’s arguments. This could include medical records, bills, receipts, pay stubs, photos or videos of your injuries or damages, witness statements, expert opinions or anything else that can prove your losses and liability. You should also keep a journal of how the accident affected your physical and mental health, daily activities and quality of life.
- Write a demand letter: The next thing you should do is write a demand letter to Allstate. A demand letter is a formal document that outlines your claim and requests a specific amount of compensation. A demand letter should include:
- Your name, address and contact information
- The date and location of the accident
- The name and policy number of the other driver
- A brief summary of how the accident happened and why the other driver was at fault
- A detailed description of your injuries and medical treatment, including dates, names of providers, diagnoses, procedures and costs
- A list of any other damages you suffered, such as lost wages, property damage, pain and suffering, etc., with supporting documents such as pay stubs, receipts, estimates or appraisals
- A calculation of your total losses and a demand for a specific amount of compensation
- A deadline for Allstate to respond to your demand letter
- A statement that you reserve the right to pursue legal action if Allstate does not agree to your demand
You can use the following sample demand letter as a template for your own letter. Make sure to customize it according to your specific situation and include any relevant evidence you have.
Sample Demand Letter
Your name Your address Your phone number
Allstate Insurance Company Claims Department Address
Re: Claim No. XXXXXXXX
Dear Claims Adjuster,
I am writing to you regarding the car accident that occurred on May 1, 2023, at the intersection of Main Street and Elm Street in Springfield, Illinois. As you know, I was injured in this accident when your insured driver, John Smith, ran a red light and collided with my vehicle. I am writing to demand fair compensation for my injuries and damages.
The police report clearly shows that Mr. Smith was at fault for the accident. He admitted to the officer that he was distracted by his phone and did not see the red light. He also failed a field sobriety test and was arrested for driving under the influence of alcohol. The police report contains a citation against Mr. Smith for violating Illinois Vehicle Code Section 11-501(a), which prohibits driving while intoxicated. I have enclosed a copy of the police report for your reference.
Injuries and Medical Treatment
As a result of the accident, I suffered severe injuries that required immediate medical attention. Transported by ambulance to Springfield Memorial Hospital, I found myself diagnosed with a concussion, a broken left arm, a fractured rib, and multiple cuts and bruises. After undergoing surgery to repair my arm fracture and receiving stitches for my lacerations, I spent three days in the hospital before being discharged with a prescription for pain medication and a referral for physical therapy.
I have been following up with my primary care physician and my orthopedist regularly since the accident. I have also been attending physical therapy sessions twice a week to regain mobility and strength in my arm. My doctors have advised me that I will need at least six more weeks of treatment before I can resume my normal activities.
The accident has caused me tremendous physical pain and emotional distress. My ability to work, drive, or perform basic household tasks has been greatly compromised. The accident has caused me to experience a range of symptoms, including headaches, insomnia, anxiety, and depression.
I have enclosed copies of all my medical records and bills related to the accident. The total amount of my medical expenses so far is $25,000.
In addition to my medical expenses, I have also incurred other damages due to the accident. These include:
- Lost wages: I work as an accountant at ABC Company and earn $50 per hour. Due to my injuries, I have been unable to work since the accident. Based on my pay stubs, I have lost $8,000 in income so far.
- Property damage: My car was totaled in the accident. According to the estimate from XYZ Auto Repair Shop, it would cost $15,000 to replace it with a similar model.
- Pain and suffering: The accident has caused me immense physical pain and emotional distress. I have endured surgery, hospitalization, medication and therapy. I have also suffered from headaches, insomnia,
anxiety and depression due to the trauma of the accident.
I have enclosed copies of all my other documents related to the accident. The total amount of my other damages so far is $23,000.
Pain and Suffering
The accident has also caused me immense pain and suffering that cannot be easily quantified. Enduring surgery, hospitalization, medication, and therapy has been a challenging journey. The trauma of the accident has caused me to suffer from headaches, insomnia, anxiety, and depression. Unfortunately, it has robbed me of the joy in life and the ability to pursue my passions. Furthermore, the aftermath of the accident has strained both my personal and professional relationships, adding stress to an already difficult situation.
To calculate my pain and suffering damages, I am using the multiplier method. This method takes my total medical expenses and multiplies them by a number that reflects the severity of my injuries and the impact of the accident on my life. Based on my research, a reasonable multiplier for my case is 4. Therefore, I am multiplying my medical expenses of $25,000 by 4 to get $100,000 as my pain and suffering damages.
Demand for Compensation
In summary, I have suffered serious injuries and damages due to the negligence of your insured driver, Mr. Smith. I have provided you with ample evidence to support my claim. Therefore, I am demanding fair compensation for my losses. Here is a breakdown of my damages:
- Medical expenses: $25,000
- Lost wages: $8,000
- Property damage: $15,000
- Pain and suffering: $100,000
- Total: $148,000
I believe that this amount is reasonable and justified by the facts of the case. I expect you to respond to this demand letter within 10 days from the date of this letter. If you fail to do so, or if you make an unreasonable offer, I will pursue legal action against your company.
Please contact me at (phone number) or (email address) to discuss this matter further. I hope that we can reach a mutually agreeable settlement without going to court.
Enclosures: Police report, witness statements, medical records and bills, pay stubs, property damage estimate, photos of injuries and damages
Alternatives to Allstate
If you are not satisfied with Allstate as your car insurance provider, you might want to consider switching to a different company. There are many alternatives to Allstate in the market, but some of the most popular ones are State Farm, Geico, Progressive and Farmers. Here are some of the pros and cons of each company compared to Allstate:
State Farm is the largest car insurance company in the US, with over 16% of the market share. It is also the cheapest among the four largest companies, according to NerdWallet’s analysis. State Farm offers a wide range of coverage options, discounts and features, such as its Drive Safe and Save program that rewards safe drivers with lower rates. State Farm also has the highest customer satisfaction ratings among the four companies, according to J.D. Power’s 2021 U.S. Auto Insurance Study. However, State Farm does not offer as many tech-friendly features as Allstate, such as its Drivewise app or its Milewise pay-per-mile program. State Farm also has fewer coverage options than Allstate, such as sound system coverage or rideshare coverage.
Geico is the second-largest car insurance company in the US, with over 14% of the market share. It is also the second-cheapest among the four largest companies, according to NerdWallet’s analysis. Geico offers a long list of discounts for various factors, such as vehicle safety features, multiple policies or good student grades. Geico also has some tech-friendly features, such as its DriveEasy app that monitors driving habits and offers feedback and rewards. However, Geico does not offer as many coverage options as Allstate, such as roadside assistance or accident forgiveness. Geico also has lower customer satisfaction ratings than Allstate, according to J.D. Power’s 2021 U.S. Auto Insurance Study.
Progressive is the third-largest car insurance company in the US, with over 12% of the market share. It offers a variety of coverage options, discounts and features, such as its Snapshot program that tracks driving behavior and adjusts rates accordingly. Progressive also has some innovative features, such as its Name Your Price tool that lets you customize your policy based on your budget or its Compare tool that lets you compare rates from other companies. However, Progressive is more expensive than Allstate for most drivers, according to NerdWallet’s analysis. Progressive also has more consumer complaints than Allstate, according to the National Association of Insurance Commissioners’ 2020 complaint index.
Farmers is the fifth-largest car insurance company in the US, with over 4% of the market share. It offers a wide range of coverage options, discounts and features, such as its Signal app that measures driving performance and offers rewards or its Accident Forgiveness feature that waives one surchargeable accident every three years. Farmers also has some niche features, such as its Rideshare Coverage that extends your personal policy to cover you when you drive for Uber or Lyft or its New Car Replacement Coverage that pays for a new car if yours is totaled within two years of purchase. However, Farmers is the most expensive among the four largest companies, according to NerdWallet’s analysis. Farmers also has lower customer satisfaction ratings than Allstate, according to J.D. Power’s 2021 U.S. Auto Insurance Study.
As you can see, each company has its own strengths and weaknesses compared to Allstate. The best choice for you depends on your personal preferences, needs and budget. When making a decision, it’s important to compare quotes from multiple companies. To streamline the process, online tools like NerdWallet or ValuePenguin can be incredibly helpful in comparing rates and reviews from different providers. Additionally, reaching out to an independent agent can also provide valuable assistance in finding the best deal tailored to your specific situation.
If Allstate denies your car accident claim, you don’t have to take their word for it. You can fight back by writing a strong demand letter that explains why you deserve compensation for your injuries and damages. A demand letter should include:
- The facts of the accident and why the other driver was at fault
- The details of your injuries and medical treatment
- The list of your other damages such as lost wages and property damage
- The calculation of your pain and suffering damages using a multiplier method
- The demand for a specific amount of compensation
- The deadline for Allstate to respond to your demand letter
- The statement that you reserve the right to sue if Allstate does not agree to your demand
A demand letter is a powerful tool that can help you negotiate a fair settlement with Allstate. However, writing a demand letter can be challenging and time-consuming. You might need professional help from an experienced car accident lawyer who can guide you through the process and represent your best interests.
If you need help writing a demand letter or handling your car accident claim with Allstate, contact a lawyer.
If you need more information or help with your car accident claim, you can check out the following resources:
- Auto Accident Lawsuit Guide (2023) – Forbes Advisor: This guide covers everything you need to know about filing a car accident lawsuit, from the statute of limitations to the settlement process.
- The Top 15 Car Accident Websites – Enjuris: This list features some of the best websites for car accident victims, including legal advice, insurance tips, safety guides and more.
- Car Accident Resources – FindLaw: This page provides links to various topics related to car accidents, such as first steps, insurance claims, fault and liability, injuries and damages, lawsuits and settlements, and more.
If you are looking for a car accident lawyer who can help you with your claim, you can contact one of the following sellers:
- Accident.com: This website connects you with a network of experienced car accident lawyers across the US. You can get a free consultation and pay nothing unless you win your case.
- Sansone & Lauber: This law firm specializes in car accident cases in Missouri. They offer a free case evaluation and a no-fee guarantee.
- Ury & Moskow: This law firm handles car accident cases in Connecticut. They offer a free initial consultation and a contingency fee arrangement.