Allstate is the latest insurance company to say that renters should not pay the full cost of insurance coverage unless they are also homeowners.
“The reality is that you can’t put your car on the road for free unless you own it,” Allstate CEO Joe Gansa said at the National Association of Insurance Commissioners annual meeting in Chicago.
“And if you don’t own it, the cost of the insurance is not going to be available.
“If you’re not the owner, the liability coverage is not available to the homeowner.” “
We don’t care if you own your car, but the liability insurance is only available to you if you’re the owner,” Gansar said.
“If you’re not the owner, the liability coverage is not available to the homeowner.”
Gansas comments come on the heels of several other insurers announcing that they will stop covering rental vehicles in the wake of the crash in Atlanta.
Allstate said in a statement that “Allstate is committed to providing the highest level of protection for our renters and homeowners, and we do not support insurers and policies that require renters to pay a higher premium to cover coverage.”
Gains: The company’s move comes after Allstate’s stock rose as much as 8.5% on the news.