2 weeks after Chicago man’s car was stolen, he’s still waiting for insurance company to pay for a rental

Two weeks after his car was stolen on the South Side, a Chicago man is still waiting on his insurance company’s help, as they have refused to step in yet despite his rental coverage.

Roy Beard’s car was stolen from right in front of his Chatham home on Feb. 4.

“I was in shock. Like, ‘Wow, I can’t believe someone took my car,'” he said.

He said, for more than two weeks since then, he’s been waiting for help from his insurance company.

But he said they’re telling him they won’t do anything for 21 days, even though he has full coverage, plus rental car coverage in his policy.

Because his insurance company won’t pay for a rental car, he’s been taking two buses and a train to work every day following the theft.

“Sitting out there in the cold, the freezing cold,” he said.

Beard said his insurance company, National General, an Allstate subsidiary, has refused to provide a rental car, despite his policy with them. While he’s called repeatedly, they won’t give him information either, telling him he has to wait 21 days as they investigate.

“I’m fighting, but I can’t fight when my hands are behind my back,” Beard said.

A text thread spells out in black and white his insurance company’s stance that it “The reason we cannot issue a rental at this time is due to our investigation, which is still ongoing at this time.”

“I pay for rental coverage, no matter what you’re investigating,” he said.

His most recent correspondence from National General was a bill for coverage he said he’s not getting on a car he does not have.

“This is the bill they sent me yesterday,” he said.

Why wouldn’t his rental coverage apply right away? How long does an insurance customer typically wait for coverage to kick in? And what do you need to know about your own policy?

We brought those questions and more to Scott Holeman with the Insurance Information Institute.

“Twenty-one days does sound like a lengthy period of time,” Holeman said.

While he said Beard’s situation is unusual, he also said it brings up a recommendation they make all the time – make sure you know your coverage, and check-in on changes.

“We always recommend that people have a check-up annually with their insurance professional,” he said.

Despite reaching out for days, Beard’s insurance company would not explain why they won’t provide rental coverage either, telling CBS News Chicago, “We are working with our customer and will resolve their claim according to their policy.”

“Generally speaking, if a covered loss is determined and the policy includes Rental Reimbursement coverage, then rental car expenses will be paid/reimbursed to the insured up to their policy limit,” the company added.

A spokesperson for the Illinois Department of Insurance said anyone who believes their insurance company is not honoring the terms of their policy can file a complaint on the department’s website. The department’s website also features general information about consumer car insurance.

What you should know about your insurance coverage

The Insurance Information Institute provided the following information about insurance policies:

Rental reimbursement coverage is an optional add-on to your auto insurance policy.  It is not automatically included in a standard car insurance plan.
  *   Keep in mind that comprehensive coverage generally does not pay for a rental vehicle as part of a stolen car claim. For that, you’ll need the optional coverage such as “rental car reimbursement” on your insurance policy. This optional coverage helps pay for transportation expenses, such as a rental car or public transit fare, during a covered insurance claim. When you can use rental reimbursement coverage depends on the other types of coverage you have on your car insurance policy. Most insurance companies require you to have both comprehensive and collision coverage on your policy to add rental reimbursement.
  *   If your car is stolen and under investigation, typically insurance companies will provide rental car reimbursement once you report the theft to the police, though they might wait a specific period (like 48 hours) before starting to cover rental costs while the investigation is ongoing; this depends on your specific policy and state regulations.

If you have comprehensive coverage on your policy, it helps:

  *   Replace your car if it’s stolen, by contributing to the full replacement costs
  *   Replace certain car parts that are stolen
  *   Repair damage to your car from a theft or break-in

Comprehensive coverage does not cover theft of your personal belongings, such as your phone, laptop or other valuables, from your vehicle.

Review your policy to see what is covered under your agreement. Car rental reimbursement is also limited by a specific dollar amount or the amount of time/number of days allowed for reimbursement. It may also be restricted to a specific event (theft or accident and does not apply for routine maintenance work.

You can typically choose where to rent a vehicle, but some insurers partner with specific rental car companies. If you rent a vehicle from a company that has an agreement with your insurer, the rental car company may bill the insurance company directly, helping prevent you from paying out of pocket. If your rental company is not in your auto insurance company’s network, you’ll likely need to pay upfront for the rental car and then request reimbursement from your insurer.