Wolf Popper LLP represents consumers in a class action lawsuit involving Allstate’s handling of rental car coverage for individuals who are not Allstate policyholders but were involved in accidents caused by drivers insured by Allstate. The lawsuit alleges Allstate arranged for these individuals to obtain a rental car, but later declined to fully reimburse them, improperly requiring them to pay part of the costs out-of-pocket.
When a driver is not at fault for an accident, the at-fault driver’s insurance company is generally responsible for covering the cost of a rental vehicle while the damaged car is being repaired. The class action alleges that Allstate informed individuals that it would pay for a rental car and arranged a reservation directly with its preferred rental car provider. These individuals rented cars under the reservation made for them by Allstate; however, after returning the rental car, they were informed that Allstate would cover only a portion of the rental cost. Allstate claimed these limitations were based on daily rate caps, vehicle class restrictions, or other internal guidelines that were not clearly disclosed at the time the rental was arranged.
The class action lawsuit alleges that Allstate’s conduct violated New York and Alabama consumer protection statutes and breached the implied duty of good faith and fair dealing.
The case is Arce et al. v. Allstate Property and Casualty Insurance Co, No. 1:26-cv-10127, currently pending in the U.S. District Court for the Norther District of Illinois. .