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Allstate Auto Insurance Review
Allstate Auto Insurance Overview
|Price||Varies by location, vehicle and other factors|
|Best For||People who want rewards for their safe driving|
|Not For||Price-conscious shoppers|
|Discounts||Many discounts offered, such as having safety devices installed, setting up autopay, taking a defensive driving course and insuring a new car.|
|In Business Since||1931|
|Better Business Bureau Rating||A+|
|Standout Features||Huge selection of discounts|
Claim satisfaction guarantee
Safe Driving Bonus Check
Sound system coverage
Allstate markets itself as a protector, selling safeguards against life’s uncertainties. You get solid coverage, efficient claims handling, and a low price, all backed by the good hands of the nation’s third-largest insurer.
Is it True?
Sort of. Allstate offers all the basic types of auto insurance coverage, as well as extras like towing and sound system protection. If you feel a basic auto insurance policy doesn’t provide adequate coverage, you can also add an umbrella policy to raise your limits. Good drivers are eligible for accident forgiveness and the Allstate Rewards program, which gives you points for safe driving that you can then spend on merchandise and gift cards.
Allstate’s protection comes at a price, however, and a steep one at that. Despite its unmatched selection of discounts, Allstate routinely offers some of the most expensive auto insurance rates in the industry. I got quotes myself and found that Allstate’s price cost over $150 more than my cheapest option, Progressive. This doesn’t mean they will be equally pricey for you, but you’ll have to get a quote to find out, since everyone’s premiums are calculated differently by each insurance provider.
Allstate Auto Insurance Rates
Compared to competitors, Allstate’s auto insurance premiums are quite expensive. Of the four insurance providers we evaluated, Allstate had the highest premium by a landslide. Our sample quote from Allstate came to $386 per year, which breaks down to over $30 per month and more than $1 per day.
The cheapest auto insurance provider we found was Progressive. Our sample quote was about $230 per year, or $19 per month and just $0.65 per day. Geico and Progressive offered slightly more expensive, but similarly priced premiums. In comparison, Allstate’s average auto insurance premium was over $100 more than State Farm, which had the third highest premium.
When comparing insurance rates, it’s important to look at the average annual cost. The daily cost may seem trivial, at just a few cents or dollars per day. But over the course of a year, those dollars add up quickly. However, it can be helpful to see the breakdown of monthly, weekly and daily costs for budgeting purposes.
|Average Annual Cost||Average 6-Month Cost||Average Monthly Cost||Average Weekly Cost||Average Daily Cost|
Auto insurance premiums are currently rising at their fastest rate in years, and Allstate seems to be leading the charge. It raised Illinois insurance premiums three times in 18 month with plans for more increases in the future, and a recent rate hike in Georgia could end up doubling what residents currently pay.
These skyrocketing prices are a big factor in Allstate’s poor customer satisfaction ratings. In the 2017 J.D. Power survey, Allstate generally scored below the regional average. Customers also reported dissatisfaction with the company’s claims service, despite Allstate’s claim satisfaction guarantee. If any of this is a concern for you, you may want to choose another company like Geico or State Farm.
Additionally, it’s important to note that auto insurers weigh a variety of factors when calculating premiums, including your age, driving record, vehicle, address and credit history. Every company has a unique algorithm that weighs these factors slightly differently, which is why you end up with slightly different rates from one company to the next. So the only way to know how much auto insurance is going to cost you is to get quotes and compare them.
Don’t make your decision based on price alone, though. It can seem tempting, but you may regret it when you go to file a claim. Make sure the company you choose is well-established and has strong customer satisfaction ratings. This will significantly reduce the headache of filing a claim and will help you get back on the road more quickly.
Allstate Auto Insurance Deep Dive
To create our Allstate auto insurance deep dive, we evaluated many different factors that contribute to the company’s overall value. These are the things customers should care about when shopping for an auto insurance company.
Factors evaluated include financial strength, customer service reviews, discounts, coverage options, add-on policies, mobile and digital tools and notable offerings. If you decide to purchase an auto policy through Allstate, this is what you can expect from the provider.
- Financially strong: Allstate has received excellent long-term stability ratings from AM Best, Moody’s and S&P. These agencies assess insurers’ financial strength to determine the likelihood that they will be able to pay out claims when the time comes. Allstate is well-established in the industry and is likely to be a major player for years to come, so you don’t have to worry about your safety net vanishing down the road.
- Claim satisfaction guarantee: Allstate offers a unique claim satisfaction guarantee that gives you a refund if you’re not happy with the way your claim was settled. Send a letter to Allstate within 180 days of the accident and it will give you up to a six-month credit on your premium for the vehicle that was involved in the accident.
- Safe Driving Bonus Check: Every policy period you don’t have an accident, Allstate will send you a Safe Driving Bonus Check for up to 5% of your annual premium in the mail.
- Unbeatable selection of discounts: Allstate offers the most auto insurance discounts in the industry. Safe driving, bundling home and auto, and signing documents online are just a few ways to save. The company also offers some uncommon savings, like passive restraint and senior adult discounts. Depending on how many discounts you qualify for, you may be able to take the edge off those high premiums.
- Vanishing deductible: Allstate takes $100 off your deductible every year you go without an accident, up to a maximum of $500 off.
- Coverage for ridesharing services: Allstate offers auto insurance to Uber and Lyft drivers to insure them in the event of an accident that takes place while they are working for the ridesharing service.
- Accident forgiveness: Allstate’s accident forgiveness is an optional coverage that protects you against rate increases following your first at-fault accident. Most companies don’t offer accident forgiveness until you have several years of accident-free driving under your belt, but with Allstate, it goes into effect the day you sign up.
- Sound system coverage: If your stereo is damaged or stolen, Allstate’s optional sound system coverage will give you the funds you need to replace it.
- Get credit for safe driving: Allstate’s Drivewise program monitors your driving for signs of risky behavior. Depending on how you do, you may be eligible for additional savings.
- Add extra protection: If you don’t feel that your traditional auto insurance policy provides enough coverage, you can add an umbrella policy. This kicks in as soon as you reach your auto insurance policy’s limit and will cover any additional costs up to your umbrella policy’s limit.
- Help if you get stuck: Allstate’s optional towing and labor coverage pays for any towing expenses you incur if your car breaks down and needs to be taken to a repair shop. And if it’s going to be there for a while, rental car reimbursement can help pay for the cost of renting a car until it’s fixed.Allstate Rewards program: If you sign up for Allstate’s Drivewise program, you’re also eligible to earn rewards. This system gives you points for your safe driving, which you can later redeem for merchandise or gift cards on Allstate’s website.
- Excellent mobile tools: Allstate’s mobile apps for Android and iOS devices are some of the best in the industry. They enable you to pay your bill online, file and track claims, and view policy documents. You can also contact your agent or roadside assistance with a single click. It’ll also keep you updated on any vehicle recalls. It can also help you locate gas stations or your parked vehicle through your GPS.
Ways to Save on Allstate Auto Insurance
Every state requires its drivers to carry some auto insurance, though exact requirements vary by state. Driving without insurance will earn you some hefty fines, so it’s not advisable. Instead, try some of these other money-saving techniques:
- Choose a safe vehicle. Make sure it has high safety ratings and isn’t a model commonly targeted by car thieves.
Tell your insurer about life changes. Insurers tend to offer lower premiums to married people and college graduates, so let them know when these things happen.
- Spend less time on the road. Driving less lowers your chance of getting into an accident, which decreases your risk to insurers.
- Improve your credit: Your credit history is used to assess your overall responsibility, so a higher credit score translates into a lower insurance premium.
- Take a defensive driving course. Several insurers, including Allstate, will give you a discount if you’ve completed an approved defensive driving course within the last three years.
- Go with a higher deductible. You’ll end up paying more out of pocket when you file a claim, but it’ll reduce your premiums significantly.
Allstate Auto Insurance Discounts
Allstate is well known for its auto discounts. Compared to competitors, Allstate tends to offer more ways to save, which may help compensate for the relatively high premiums.
The company offers discounts if you have a car with certain safety features, like anti-lock brakes and an anti-theft device. Discounts can also be applied to people who are claims-free, have taken a defensive driving course, sign up for autopay, pay their policy on time, insure a new car and pay their policy in full.
Allstate is also a popular auto insurance provider for students, or new drivers who might otherwise be subjected to high insurance rates. Allstate offers discounts to drivers who completed a driver’s ed course, get good grades, and are a good driver.
Additionally, student drivers who go to college at least 100 miles away from their home can get a significant savings on their insurance policy.
The full list of discounts that Allstate offers is below:
- Anti-lock brake
- Anti-theft device
- Automatic payment
- Defensive driving course
- Driver education
- Early signing
- Economy car
- Farm vehicle
- Good payer
- Good student
- Life insurance
- New car
- Passive restraint
- Pay in full
- Resident student
- Safe driver
- Senior adult
- Sign documents online
- Utility vehicle
Progressive: Progressive is a good option if you’re on a budget. Its customer satisfaction ratings aren’t spectacular, but its rates are among the lowest in the industry. Its Name Your Price tool enables you to build a policy around your budget and its many optional coverages let you purchase extra protection for pets and custom equipment. Progressive is also one of the few insurers to offer gap coverage, which pays the difference between the actual value of your car and the amount remaining on your loan if your vehicle is totaled.
Geico: Geico is another top choice for those interested in a low rate. Its discounts are almost as impressive as Allstate’s, which could help lower your premiums even further. Geico received mixed reviews in terms of customer service, according to the J.D. Power survey, but outscored Allstate and Progressive in several regions. Geico is also the only company on this list to offer the rare mechanical breakdown coverage, which pays for repairs that aren’t included in your collision or comprehensive coverage.
State Farm: State Farm’s rates are typically lower than Allstate’s and its customer service is the best of any company on this list. It doesn’t offer much in the way of optional coverages and its discounts aren’t as impressive as Geico’s or Allstate’s, but if you’re looking for a straightforward policy and superior customer service, State Farm is an excellent choice.
What Others Are Saying
- Claims Journal discussed Allstate’s new rate increases in Georgia. The rates went into effect in May of 2016 and could raise premiums between 25% and 58%. The insurance commissioner plans to review the filing and promises residents that “If the filing is proven to be excessive, then I will do everything allowed by law to reverse Allstate’s actions.”
- The Chicago Tribune reported that Allstate plans to “continue to aggressively pursue rate increases” despite the fact that the constant rate hikes are making it difficult for the company to attract and keep customers.
- The Chicago Tribune also picked up a story about Allstate’s plans to mine even more personal data about their customers. It recently filed a new patent for an invention that could monitor drivers’ heart rates and blood pressure through steering wheel sensors. This is an advancement of the growing telematics programs that insurance companies are using to monitor and record their customers’ driving habits. Allstate can also sell this data to other companies: “The recorded data may also provide an objective behavioral data collection system for third parties, e.g., health insurance companies, lending institutions, credit-rating companies, product and service marketing companies, potential employers, to evaluate an individual’s behavioral characteristics in a real-life and commonly experienced situation, i.e., driving a motor vehicle.”