Does Allstate Offer Rental Car Insurance?
Last Updated on January 14, 2022
If you have car insurance from Allstate, then you may or may not have rental car insurance.
Most Allstate car insurance policies extend to cover your rental car. As long as you have liability insurance with Allstate, you should be covered when driving a rental car.
Keep reading to discover everything you need to know about Allstate’s rental car insurance coverage, including whether or not Allstate covers rental car insurance.
Table of Contents:
- Most Allstate Policies Cover You When Driving a Rental Car
- How Car Insurance Covers Rental Cars
- How Rental Car Reimbursement Coverage Works
- Do I Need to Buy Car Insurance from the Rental Car Company with Allstate?
- Do I Need Rental Reimbursement Coverage?
Most Allstate Policies Cover You When Driving a Rental Car
If you have a car insurance policy with Allstate, then that policy should cover you when driving a rental car.
A standard car insurance policy includes liability coverage, which is required in most states. Liability coverage includes bodily injury and property damage liability coverage. It protects other drivers against damages you cause when driving your own vehicle or a rental car.
As long as you are driving a rental car for personal use, your Allstate policy should extend to cover you when driving the rental vehicle. Any damages you cause while driving that vehicle will be covered by Allstate up to the limits of your policy. Allstate will cover medical bills, property damage repair costs, and other costs you cause to other people when driving your rental car.
How Car Insurance Covers Rental Cars
Depending on your type of car insurance policy, you could have full coverage car insurance on your rental car or only minimum liability coverage.
All Allstate customers carry liability coverage, which is required in most states and is a fundamental part of car insurance. However, some Allstate customers carry optional coverages like comprehensive and collision coverage. These coverages are optional in all states but provide additional protection to your own vehicle and any vehicles you rent.
To understand how your Allstate policy covers a rental car, it helps to understand the core parts of an Allstate policy:
Liability Coverage: Required in virtually every state, liability coverage protects other drivers against damages you cause. Liability coverage pays for the other person’s medical bills or vehicle repair costs, assuming you caused the accident. If you have liability coverage with Allstate, then this liability coverage covers you when driving your own vehicle and a rental vehicle.
Collision Coverage: Collision coverage covers the cost of repairing your own vehicle or a rental car after a collision where you were at fault. If you collided with another vehicle or object (like a tree or fence), then you would pay your collision coverage deductible, and Allstate would cover all remaining vehicle repair expenses.
Comprehensive Coverage: Comprehensive coverage covers the cost of repairing your own vehicle or a rental car after any incident that occurs outside of a collision. Comprehensive coverage covers theft, vandalism, hailstorm damage, fire damage, flood damage, and other damages, for example.
All Allstate policies include liability coverage. If you have full coverage car insurance, then you also carry collision and comprehensive coverage. Any coverages on your ordinary Allstate car insurance policy will extend to any car you rent.
How Rental Car Reimbursement Coverage Works
In some situations, Allstate will cover the cost of renting a vehicle. Allstate will extend liability, collision, and comprehensive coverage to your rental vehicle (assuming you have these coverages on your ordinary policy), but Allstate could also compensate you for the cost of renting the vehicle itself through rental car reimbursement coverage.
Rental car reimbursement coverage is an optional Allstate policy add-on. In exchange for a few dollars per month, Allstate will cover the cost of renting a car if your ordinary car is being repaired after a covered loss.
Let’s say you get into a collision. Your car needs to spend two weeks at the auto shop for repairs. During this time, Allstate covers the cost of renting a car until you can resume driving your ordinary vehicle.
Typically, rental car reimbursement coverage has a limit of around $50 per day. Allstate may cover the rental costs upfront. Or, you could submit a reimbursement claim after the rental is over.
Do I Need to Buy Car Insurance from the Rental Car Company with Allstate?
If you have an Allstate policy, you may be curious about whether or not you need to buy car insurance from the rental car company. Depending on your Allstate policy, it may or may not be in your best interest to buy insurance from the rental car company.
You should buy extra coverage from the rental car company if:
- You’re driving the rental car for commercial purposes (like business or work-related reasons) instead of personal use
- You want to avoid the risk of paying a high deductible
- You do not have collision or comprehensive coverage (i.e. full coverage) on your Allstate policy
- You do not have rental car insurance through a credit card
- You want coverage for your personal effects, or you want extra peace of mind at all times when driving the rental vehicle (if you buy the collision damage waiver from the insurance company, then you are not responsible for any damage to the rental vehicle)
Overall, rental car insurance may or may not be worth it, depending on your Allstate policy. However, if you have low limits on your Allstate policy, or if there’s no collision or comprehensive coverage on your Allstate policy, then it may be worth it to buy rental car insurance from the company.
Do I Need Rental Reimbursement Coverage?
Rental reimbursement coverage is an optional car insurance policy that covers the cost of renting a vehicle after a covered loss. Depending on your needs, it may or may not be worth it to carry rental reimbursement coverage.
Rental reimbursement coverage helps you avoid costly car rental fees after an accident. After an accident, you may need to pay your deductible and other costs.
The cost of a rental car adds up quickly. Sometimes, it takes weeks or even months for a repair shop to repair your vehicle to pre-loss condition. In this case, rental reimbursement coverage quickly pays for itself.
However, if you want to save a few dollars per month and don’t mind the added risk, then you may want to avoid carrying rental reimbursement coverage.
Many full coverage car insurance policies from Allstate already have rental reimbursement coverage. Contact Allstate or check your policy to verify coverage.
Final Word on Allstate Rental Car Insurance
If you have Allstate car insurance, then that car insurance should extend to cover you when driving a rental car.
If your Allstate insurance policy has rental reimbursement coverage, then Allstate will cover the cost of renting a vehicle – assuming your vehicle is being repaired after a covered loss.
To learn more about Allstate’s rental car insurance coverage, or to verify you are covered, contact Allstate or check your Allstate insurance policy today.