In Rogers v. Allstate Property and Casualty Insurance Company, the Superior Court of Pennsylvania affirmed the dismissal of bad faith claims asserted against Allstate. Finding that the insured’s auto insurance comprehensive clause did not cover negligent or poor workmanship repairs by a third-party repair shop, the claim was dismissed.
The insured was involved in a collision, and permitted an unsolicited tow truck to transport her car to Collisionworks for repairs and she agreed to complete the repairs for the cost proposed in the adjuster’s estimate directly to Allstate, who then paid Collisionworks. After the car owner noticed issues with the vehicle, she filed a claim with Allstate for the car’s condition, which was denied by Allstate. Allstate claimed that the company does not provide comprehensive coverage for loss caused by negligent repairs.
After the denial the insured filed suit against Allstate and Collisionworks. The trial court sustained Allstate’s preliminary objections and dismissed the woman’s claims of breach of contract, negligence, violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, and bad faith with prejudice. After reviewing the policy, the Court concluded that only certain categories of harm were subject to coverage, including: 1) weather-related risks, 2) Civil unrest risks, 3) Criminal Acts, and 4) falling objects. The Court stated that the insured’s claim, as pled, can only be characterized as faulty or negligent workmanship, and not a criminal act.