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It sounds like the dealer is at fault, and therefore, the dealer should be required to make you whole by correcting this mistake. I agree with Allstate that you should contact the dealer to make them aware of their mistake, and to ask that they fix it by paying the $900 that Allstate has requested. If the dealer refuses to fix the problem, then you have the option of suing the dealer in small claims court. Based on what you told me here, I think that you'd have a very good chance of winning a small claims case since it sounds like the dealer is clearly to blame.
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