Court Rules Allstate Does Not Have to Pay $32,000 Insurance Claim

A Florida appeals court ruled this week that one of the largest auto insurance companies in the nation, Allstate Insurance, does not have to pay for the $32,000 in damages sustained by one of its policyholders while being driven around in the trunk of his own car.

A lower court had ruled that the policyholder, Jonathan Adrabi, was entitled to compensation for the claim he had made under the uninsured motorist coverage section of his insurance policy.

While stopped behind another car at a stop sign more than 10 years ago, Adrabi was pulled out of his car, hit with a shotgun, thrown into the trunk of his own car and driven around at high rates of speed, with the carjackers occasionally making suddent stops that sent Adrabi flying around the inside of the trunk.

After the incident, he filed for compensation under his Allstate uninsured motorist coverage. His explanation for doing so was essentially that his car became an uninsured vehicle once the carjackers took control of it.

Allstate rejected that rationale. But the insurance company was ordered to pay for the claim by the lower court, which agreed with Adrabi.

But on Wednesday, Florida’s 3rd District Court of Appeals ruled in the car insurance provider’s favor.

The court noted in its opinion that the policy spelled out that uninsured motorist coverage would pay for bodily injury that “must be caused by accident and arise out of the ownership, maintenance or use of an uninsured” car, which is defined as a car that has no bodily injury liability or is used in a hit-and-run accident.

The damages Adrabi sought were caused directly at the hands of his carjackers and indirectly by his own vehicle, which was insured, according to the court.

In addition, the court wrote in its opinion that many of the precedents Adrabi had cited in making his argument had little or no relevance to the case.

To read the experiences of current and former Allstate policyholders, readers can find user-submitted Allstate auto insurance reviews online.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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