Allstate adds identity theft coverage for auto insurance policyholders in California

John Egan

New and renewing Allstate auto insurance policyholders in California now can add identity theft coverage.

For as little as $30 a year, the Allstate coverage provides up to $25,000 in reimbursement for “reasonable expenses” related to identity restoration, including attorney’s fees and lost wages. Allstate spokesman Jim Klapthor says that for identity theft to be covered, the theft doesn’t have to be directly connected to a policyholder’s vehicle (for instance, a purse stolen from the front seat of your car).

About 9 million Americans are victims of identity theft each year. “Victims of the worst identity theft cases spend 100 hours or more trying to correct problems caused by this crime,” Phil Telgenhoff, an assistant vice president at Allstate in California, says in a news release.

One of Allstate’s chief competitors, State Farms, sells similar identity theft insurance for $25 a year as an add-on to homeowner’s and renter’s insurance policies. Insurers such as GEICO and Nationwide also sell identity theft coverage.