Allstate Auto Insurance
- A.M. Best: A+ (Superior)
- Moody’s: Aa3
- Fitch: A-
- Standard & Poor’s: AA-
Allstate is one of the most popular car insurance providers in America. It’s even larger than most people think because it also includes Esurance, yet another of the most popular insurance companies in the country.
The premium rates vary by the driver and by location, as well as other factors, but Allstate is usually not the cheapest auto insurance source. But they make up for that with attractive policy options, like accident forgiveness.
And since the company provides virtually every other type of personal and business insurance available, it’s a virtual one-stop-shop for all your insurance needs.
That also has the advantage on the price side when you can bundle policies to get premium reductions. And given that the company is financially strong, well-established, and in business for more than a human lifetime, you can have complete confidence that they’ll be there when you need to file a claim.
Table of Contents:
- About Allstate Auto Insurance
- Allstate Car Insurance Policies
- Cost of Allstate Car Insurance
- Discount Options
- Pros & Cons of Allstate Auto Insurance
- Who Is Allstate Car Insurance Best For?
About Allstate Auto Insurance
Allstate is one of the largest insurance companies in America, and offers virtually every type of insurance, in addition to car insurance.
It’s a strong company that’s been around for 88 years, and provides the kind of financial strength that can enable its customers to rest easy.
Allstate Company History
Allstate is one of the most well-known insurance companies in America. Part of that is because it’s also one of the most well marketed companies.
They branded themselves as the “Good Hands” people, as in Are you in good hands with Allstate? a company slogan they’ve marketed for years.
More recently, they’ve become well-known for their commercials hawking accident forgiveness. And then there’s the human wrecking ball, “Mr. Mayhem”, the personification of a devil-like figure, showing you graphically why you need auto insurance coverage.
There’s no doubt Allstate is one of the top insurance companies in the advertising department.
But the company also has a long and respected history. Headquartered in Northbrook, Illinois, Allstate began operations in 1931.
Often forgotten is that the company was the insurance arm of Sears from its founding until 1993, when it spun off and became an independent insurance company. Today, Allstate is a publicly-traded company (NYSE: ALL) and one of the largest financial companies in America with more than $112 billion in assets.
Allstate is the parent company of another well-known insurance company, Esurance. Esurance auto and home insurance policies are sold online and by phone and offer some of the lowest premiums in the industry.
Allstate Financial Strength
Though the financial strength of an insurance company is often ignored, particularly when it comes to auto insurance, it’s actually much more important than most consumers realize.
The financial strength of a company is an indication of its ability to manage it’s operations. That includes paying claims, which is the most critical concern for consumers.
A company that’s struggling financially may react by delaying or denying claims. And what most consumers are completely unaware of is that there is no FDIC equivalent for the insurance industry. That’s why it’s important to carry your insurance coverage only through companies with above average levels of financial strength.
Fortunately, Allstate scores well with financial strength. There are no specific ratings for the auto insurance division of the company, but it’s all under the Allstate umbrella.
The company’s ratings from the major third-party rating services are all on the higher end of the scale. Allstate rates well in the category of financial strength.
Rating Agency Ratings
- A.M. Best: A+ (Superior)
- Moody’s: Aa3
- Fitch: A-
- Standard & Poor’s: AA-
Allstate Car Insurance Claims Satisfaction Ratings
As large and well-established as Allstate is, particularly in light of its aggressive marketing profile, the company scores only average or slightly above in customer satisfaction, particularly relating to the all-important category of claims satisfaction.
While most consumers who are shopping for auto insurance are looking for the lowest premiums, customer satisfaction involves everything that happens after that.
That includes how responsive the company is to consumer inquiries, coordinating estimates and repairs, arranging for rental cars, providing claims service, and actually settling those claims.
Customer satisfaction ratings from recognized third-party sources for Allstate are as follows:
- J.D. Power: 3 stars out of 5 for overall satisfaction, claims servicing and settlement. It’s ranked 11th out of 22 major auto insurance providers.
- Better Business Bureau: A+ (highest rating) on a scale of A+ to F, based on 250 consumer reviews.
- Trustpilot: 2 stars out of 5 (poor), based on 18 consumer reviews.
- Consumer Reports: Allstate is not rated by this service.
- Consumer Affairs: 3.7 stars out of 5, based on 1,414 consumer reviews.
Allstate Car Insurance Policies
The basic types of coverage provided by Allstate Car Insurance include:
- Liability: for expenses related to injury, death, and property damage to others when you’re at fault.
- Collision and Comprehensive: covering damage to your vehicle both when it’s moving and parked.
- Medical payments: for medical expenses, if you or passengers in your vehicle are injured.
- Personal injury protection: covers expenses related to injuries in a covered accident.
- Uninsured and under-insured motorist: in case you’re involved in an accident with an at-fault driver who either has no insurance or not enough. This coverage is required in many states.
- Personal umbrella policy: providing additional coverage beyond the basic liability portion of your policy.
Allstate also offers roadside coverage, providing emergency tire changes and battery jump starts, as well as special policies to cover classic cars.
Allstate Ride for Hire. This coverage rates a special discussion, since it provides auto insurance for rideshare drivers, like those who drive for Uber and Lyft. Many insurance companies specifically exclude coverage when your vehicle is used for business purposes. But this policy option is designed specifically for people who work in the rideshare industry.
Allstate Car Insurance Options
Allstate provides several car insurance options that may be of interest to you, either based on personal need, or additional protections you may feel you need.
- Accident forgiveness: If you add this option to your policy, your rates won’t go up because of an accident, even if the accident is your fault.
- Allstate rewards: You earn points for safe driving, that can be redeemed for savings on daily deals, gift cards, sweepstakes and other rewards.
- Allstate Drivewise: By using the Allstate plug-in device to monitor your driving, you can earn cash back. That includes 10% just for signing up, then up to 25% every six months for everyday safe driving.
- Safe Driving Bonus: You’ll earn a bonus every six months you’re accident free. You can also get $100 taken off your collision deductible when you sign up, plus an additional $100 reduction each year you drive accident-free, up to a total of $500.
- New car options: Brand new cars sometimes require extra protection. That can include new car replacement coverage, repair provision coverage, and loan or lease gap protection. Gap coverage will pay off your full loan amount, even if your new car is totaled, and the settlement will be insufficient to fully cover the remaining outstanding loan balance.
- Rental reimbursement: Covers the cost of renting a car while your vehicle is being repaired.
- Sound system coverage: Covers the cost of stolen or damaged audio or video equipment.
- Travel to Mexico: If you plan on driving to and in Mexico, Allstate offers optional coverage.
How Much Does Car Insurance Cost with Allstate?
This is always a difficult question to address in a general review when it comes to insurance, but especially car insurance. There are so many variables that affect the premium you’ll pay on a policy.
Geography plays a major role. The same company that’s the least expensive in one state or county, can be one of the most expensive in another. Auto insurance providers also have specific niches.
For example, a company may specialize in providing coverage for younger drivers, older drivers, married couples, or homeowners.
The type of coverage you need will also impact your premium. That includes the amount of liability coverage you need, whether or not you’ll add collision and comprehensive, the type of vehicle you drive, and your own personal driving history, among other factors.
With those variables in mind, we’ve attempted to provide a ballpark premium estimate for several common driver types.
Allstate Car Insurance Discounts
Allstate is one of the more generous car insurance companies when it comes to discounts. They offer one for almost every imaginable feature or circumstance. The list includes the following:
- New car discount
- Multiple policy discount when you bundle with home or renter’s insurance
- Smart student discount
- Anti-lock brakes
- Anti-theft devices
- Early Signing Discount, when you sign your policy documents seven or more days before it becomes effective
- Responsible payer discount
- Auto-pay discount
- Paperless documents
- Full-pay discount, when you pay your policy in full
Allstate Car Insurance Pros & Cons
- Large well-established company that has been in business since 1931.
- Allstate provides virtually every type of insurance coverage, in addition to auto insurance. You can keep all your various policies with the same carrier.
- Allstate provides coverage for rideshare drivers, through their Allstate Ride for Hire program.
- Provides a dedicated agent to manage your car insurance policy and other types of insurance.
- Allstate offers a wider variety of coverage types and discounts than most other auto insurance providers.
- Allstate will generally not be the least affordable auto insurance policy.
- The company falls only in the middle of the pack among major auto insurance companies when it comes to customer service, particularly claim service and settlement.
- While the agent availability is an advantage when it comes to service, it can be a disadvantage if you need to change providers, since your agent works exclusively for Allstate.
Who is Allstate Car Insurance Best For?
Like all auto insurance companies, Allstate will work very well for some drivers, and not so well for others. Drivers most likely to benefit from an Allstate car insurance policy include:
- Drivers who want to work with a company that’s well-established and financially strong.
- Anyone who prefers working directly with a live insurance agent.
- Consumers who want to have all their insurance policies through the same company.
- Business owners, who will need various types of policies to cover their businesses, but also want to include personal policies, like auto insurance.
- Anyone who participates in ridesharing. Allstate offers coverage specifically for this type of driver in most states. It’s not typically available with the lowest cost providers.
- A driver whose concerned about the substantial impact of an at-fault accident on their auto insurance premium. Allstate’s Accident Forgiveness can eliminate that worry.
- Drivers who live in a state or county where Allstate is one of the lower costs providers. It may not be the lowest, but the policy options and discounts it offers can make it a preferred provider.
In most cases, Allstate will not be a good match for anyone who is looking for the least expensive auto insurance premium possible. But then, that’s not their area of specialization.