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Allstate wins ruling saying it owes nothing to unauthorized driver
A New York appeals court said the driver lacked permission to use the decedent's car, so policy rights did not pass to her after the named insured died.
Allstate does not owe a defense or payout to a driver who crashed a deceased policyholder's car without permission, a New York appeals court ruled, reversing a lower court decision in a dispute over who could invoke an auto policy after the named insured died.
The decision, issued August 19, 2026, followed a crash involving a car owned by a man who died April 15, 2020. Months later, on October 9, 2020, the man's girlfriend was driving the car when it hit another vehicle, injuring a passenger in the other car who sued multiple parties, including the driver and the estate.
Insurance Business reports that Allstate initially agreed to defend the driver but later sought a declaration that it owed nothing. The insurer argued that the decedent's daughter became legal representative of the estate in January 2021, and that the driver was neither the legal representative nor a person with proper temporary custody, meaning policy rights never passed to her.
The appeals court also rejected the lower court's focus on spelling differences in the driver's name across paperwork, finding those differences to be mere irregularities and ordering the case remanded so a judgment can be entered confirming Allstate owes no defense or indemnity to the driver.