Allstate is facing a proposed class action over rental car reimbursement. The plaintiffs allege Allstate arranged rentals through Enterprise Rent-A-Car but did not reimburse the full amount charged.
The lawsuit was filed Aug. 21 in U.S. District Court in Chicago by Jose Arce of New York and Daniel Jackson of Alabama. Neither man was insured by Allstate. According to the complaint, both were involved in crashes with Allstate-insured drivers who were found at fault.
Rental Cars Arranged Through Enterprise
The plaintiffs say Allstate told them it would cover rental car expenses while their vehicles were being repaired and directed them to Enterprise.
Arce rented a Mazda CX-5 for eight days after his Tesla Model 3 was damaged in September 2025. Enterprise charged $352.46. According to the complaint, Allstate reimbursed $267.24, leaving $85.22 unpaid.
Jackson describes a similar experience after an April 2026 crash involving his Toyota Prius. He received a Nissan Altima through the Enterprise reservation and kept it for 24 days while his car was being repaired. Enterprise charged $824.73. Allstate reimbursed $732.35, according to the complaint, leaving Jackson responsible for the remaining $92.38.
The Dispute Over What Allstate Would Pay
The dispute centers on whether Allstate can arrange a rental through its preferred vendor and then reimburse the driver for less than the amount charged under that reservation.
The plaintiffs say they accepted the vehicles Enterprise provided without requesting upgrades. Allstate later limited reimbursement to lower daily rates, according to the complaint.
In a June 1 letter, Allstate told Jackson it had reimbursed him at $28.31 per day.
“After reviewing the cost of the vehicle you rented, we’ve determined that it exceeds the reasonable amount we would typically pay for the loss of use of the damaged vehicle,” Allstate wrote in the letter.
Arce and Jackson seek to represent a nationwide class of third-party claimants who rented through Allstate’s preferred vendor but were not reimbursed for the full amount charged. The complaint also proposes New York and Alabama subclasses.
The lawsuit alleges breach of the implied covenant of good faith and fair dealing and promissory estoppel, along with violations of consumer-protection laws in New York and Alabama.
Jackson challenged Allstate’s position after receiving his reimbursement.
“It was never an understanding of mine that your company might establish a car reservation on my behalf at any rate other than what we agreed to,” Jackson wrote. “That really should have been disclosed, or you should have had me make the direct reservation.”
