Allstate was founded as an auto insurance company in 1931 by Robert E. Wood, the chairman of Sears, Roebuck & Co. He took the name from a type of tire sold by Sears at the time. Wood wanted to offer reduced rates to Sears' customers. In 1993, Sears sold its 19.8 percent stake in Allstate, and the company had an initial public offering. A couple years later, Allstate was completely publicly owned.
In 1939, Allstate was the first company to base insurance rates on mileage, use, and the age of the car. Every auto insurer would soon follow Allstate’s lead with variable rates based on the vehicle that was being insured. In 1959, Allstate took the initiative in offering discounts on insurance for owners of small cars.
The “You’re in Good Hands” slogan debuted in 1950, along with an illustration of a car being held in two cupped palms. The campaign was updated in 2016 to “It’s Good to Be IN Good Hands,” but the old slogan remains more recognizable after six decades in use. Since 2003, we’ve heard actor Dennis Haysbert reassuringly recite the line. In 2010, Allstate added some edge to its advertising with the Mayhem campaign, with actor Dean Winters personifying all the things that can go wrong in an auto accident – and then be made right by Allstate insurance.
Allstate Is the 8th Best Car Insurance Company
How We Created This Allstate Car Insurance Review
While many auto insurance companies make it easy to compare rates online, it can be hard to learn what customers think of their insurance company. We surveyed 2,799 people who filed a car insurance claim in the last five years on their experience with their car insurance company.
U.S. News also worked with Quadrant Information Services to provide a report of average insurance rates in all 50 states from the 10 largest national car insurance companies. The rates are based on profiles for both male and female drivers aged 17, 25, 35, and 60. Vehicles used include the 2018 Honda Civic, 2018 Toyota RAV4, 2018 Ford F-150, 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage of 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations. The rates shown here are for comparative purposes only. Individual rates will differ.
Allstate Rating and Review
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Allstate auto insurance ranks in the bottom half of our survey. People were generally pleased with customer service and filing a claim, but they did not feel they were getting a great value from Allstate. The company does have some of the highest average rates in our survey, which we’ll dig into below.
Seventy-five percent of respondents were satisfied or very satisfied with how easy it was to file a claim with Allstate. As one person said, “I love my agent, but I’m not happy with rates.” About 12 percent said they were dissatisfied or very dissatisfied, which is echoed in the sentiment of one respondent: “I felt like no one was willing to go above and beyond during a difficult time to provide direction and guidance through the claim process.”
People seemed to like the customer service staff at Allstate, with 71 percent saying they were satisfied or very satisfied with it. Less than 20 percent gave it an unsatisfactory rating. Allstate’s updates during the claims process, however, were lacking for many. Fewer than half of those who took our survey said they were completely satisfied with claim updates. One frustrated respondent wrote, “[My] claim was not assigned to anyone who actually was responsible for taking action for four days.” Another noted, “all the work expected of the customer: taking images, multiple calls, hassle factor.”
Respondents did not feel that they were getting a good value from Allstate. Only 38 percent said they were completely satisfied, with another 20 percent saying they were neutral on the value they get from Allstate. Eighteen percent were dissatisfied or very dissatisfied with the value they get from Allstate.
The low perception value had caused several people in the survey to jump ship. “I moved my insurance not long after my last claim for a better rate,” said one. “Other companies are cheaper and give better coverage,” said another. Those who had decided to remain with Allstate cited the difficulty of disentangling themselves from their current insurance. “I stuck with them for three years, as other insurance companies penalize you for claims within three years,” one wrote. Bundling also plays a role for some: “Only stay with them because I have my home insurance and motorcycle insurance, and it’s too difficult to break apart.”
Allstate Car Insurance Costs
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Allstate doesn’t have the most expensive overall average rate; that honor goes to Liberty Mutual. But it is the second-most expensive, with an average rate of $4,888. That’s nearly twice the rate of the lowest average, USAA’s $2,537. Auto insurance rates differ for each person according to several variables, including the vehicle your insuring, your age, the amount of insurance purchased, and your driving record. We’ll look at averages across several of the most common categories to help you make a decision when purchasing car insurance. These rates are just for comparative purposes; your insurance rates will differ.
Young drivers will pay significantly more with Allstate car insurance. A 17-year-old female driver will pay an average of $9,282, and a male driver the same age has an average rate topping $10,000. Rates drop drastically for 25-year-old drivers, to about $3,500. Rates continue to go down as drivers age, with average rates below $3,000 a year for 60-year-olds.
|Single 17-year old female||$9,282.19|
|Single 17-year old male||$10,642.53|
|Single 25-year old female||$3,424.87|
|Single 25-year old male||$3,570.93|
|Married 35-year old female||$3,156.09|
|Married 35-year old male||$3,123.01|
|Married 60-year old female||$2,913.37|
|Married 60-year old male||$2,990.64|
Allstate drivers are not severely penalized if they put more miles on their car. The average rate for a driver who puts 6,000 miles on the odometer is about $4,800. Driving 12,000 miles per year, which is closer to the national average, only adds about $100 to Allstate’s rate.
Allstate’s rates for low, medium, and high rates of coverage differ by only a few hundred dollars. Low coverage, which might cover only the basic requirements, has an average rate of $4,628. High coverage, which might have lower deductibles and higher limits, has an average rate of $5,139. It’s worth noting, though, that these rates are higher than some of Allstate’s competitors.
|Coverage Type||Average Rate|
Drivers with good credit history have some of the lowest average rates that we found with Allstate, at about $3,800. Fair credit adds about $700 to that average. Those with poor credit might want to shop elsewhere, though. Allstate’s average rate for these drivers is nearly $6,500 – about $2,000 more than the average for drivers with fair credit and much higher than what other insurance companies charge.
|Credit History||Average Rate|
When it comes to driving records, Allstate rewards the angels among us with its lowest rates. The average for drivers with a clean record is about $3,800. One speeding ticket bumps that average up to $4,483, and one accident raises the rate to $4,987. The rate jumps to $6,261 on average for those with a DUI, but that’s not unusual. Several auto insurers also heavily penalize those who drive while under the influence.
|Driving Record||Average Rate|
|With 1 speeding violation||$4,483.51|
|With 1 accident||$4,987.68|
|With 1 DUI||$6,260.73|
Who Should Get Allstate Car Insurance?
Allstate’s average insurance rates are higher than almost every other company’s rates in every category we investigated. No matter what we looked at – age, mileage, driving record, etc. – there were eight less-expensive average rates.
The differences between Allstate’s rates and the rest of the industry leaders’ rates were lowest for adult drivers. We found that 35- and 60-year-old drivers’ rates were about $1,000 more than most other rates.
Other categories had canyons between the lowest rates and Allstate’s average rates. Driving 12,000 miles annually is fairly typical for many Americans. The lowest average rate for this distance, from USAA, was $2,591. Allstate’s average was nearly twice that, at $4,934. For drivers with poor credit, the average rate across all 10 companies we looked at was $5,150. Allstate’s average was nearly $1,500 higher for those drivers.
Allstate Auto Insurance vs. Progressive Auto Insurance
Progressive is among the more expensive car insurers, but Allstate is still more expensive across the board. Drivers with poor credit ratings can save an average of about $2,000 on their rates with Progressive, and drivers with a DUI on their record will save about $2,300. In almost every other category we looked at, from young drivers to those who put 12,000 miles on their odometer each year, Progressive saves drivers an average of $1,000 annually.
There were a couple exceptions. Drivers with one accident or one speeding ticket had similar rates with Allstate and Progressive, though Allstate was still higher by about $450.
Allstate Auto Insurance vs. State Farm Auto Insurance
State Farm’s average car insurance rates are significantly lower than Allstate’s, and State Farm rates significantly higher with those who filed a claim and took our survey. For example, some of the lowest rates from any insurer are for married women aged 60. State Farm’s average rate is $1,873, while Allstate’s average is $2,913, or $1,040 higher.
Even when opting for low coverage amounts, Allstate’s average was about $4,600. State Farm’s average was about $3,050. Allstate’s average rate for drivers with a clean record was $1,000 higher than State Farm’s. Allstate also penalizes drivers with one accident more harshly, with an average rate of just under $5,000. State Farm’s average for that same category was about $3,400.
Allstate Auto Insurance vs. Geico Auto Insurance
Geico’s famous “15 minutes could save you 15 percent or more” slogan seems true when comparing its average rates to Allstate’s. Young drivers could pay about $3,500 less for Geico car insurance, according to average rates in our study. Low insurance coverage with Geico runs an average of about $3,000, compared to Allstate’s average of about $4,600.
Geico raises rates pretty steeply when a driver gets a DUI, but Allstate’s rates are still much higher. Geico’s average rate for those with a DUI is $4,875, which is one of the highest for this category and a jump of more than $2,700 compared to a driver with a clean record. Allstate’s average for a driver with a DUI is $6,260, which is about $2,400 more than its rate for a driver with a clean record.
Types of Coverage from Allstate Car Insurance
Allstate has been an early adopter of technologies. It established a website for consumers in 1996, which was practically the dark ages of the internet. In 2000, Allstate established the Good Hands Network pilot program in Oregon for customers to buy auto insurance online, in addition to using an agent in person or over the phone.
The company has continued to stay on top of the tech game with services like Drivewise, an app that monitors a driver’s speed, the time of day a trip is taken, and the number of hard braking incidents. Staying within the speed limit, driving less at night, and braking slowly can all earn driver discounts on insurance, as well as rewards such as discounts on restaurants and travel.
Allstate also uses Cellcontrol for anyone who wants to clamp down on phone usage while driving. The program is aimed at younger drivers, but there are plenty of adults who could benefit from the service, which shuts down texting, games, and social media apps. Cellcontrol does allow hands-free calling and calls to 911.
You can also opt into the Safe Driving Bonus program. Every six months that you don’t have an accident, Allstate will send you a check in the mail. The program also includes $100 off your collision deductible every accident-free year for up to four years.
Allstate Car Insurance Complaints
It’s probably clear by now that Allstate is one of the most expensive auto insurers, and people who took our survey noticed. Many of those who had complaints about the company had already switched auto insurance providers.
One respondent had changed companies, but the claim they mentioned in our survey was still filed with Allstate because it was the other driver’s insurance company. They said, “First of all I am a former Allstate customer, so I know from past experience that they are very expensive. Second, the service, process of the claim, and return calls were completely nonexistent. I called them, and any updates were from [my] own insurance company, not AllState.”
Another said simply, “I moved my insurance not long after my last claim for a better rate.” And yet another echoed most of the complaints: “Other companies are cheaper and give better coverage.”
Allstate Car Insurance Discounts
In addition to the typical discounts, such as bundling policies for multiple vehicles or multiple types of insurance, Allstate offers a few different discounts. You can save up to 15 percent if you buy a brand-new car and you’re its first owner, for instance.
Allstate, like many insurers, offers discounts for students who get good grades and complete a driver’s education program. Allstate also gives parents a discount if their child is on the policy but going to school away from home – at least 100 miles from where the car is garaged. If your college-age kid is only driving the car during holiday breaks, Allstate doesn’t require that you pay the full rate for young drivers who live at home year-round.
Other Types of Policies From Allstate
Allstate has coverage specifically for classic cars and those who drive for ride-sharing companies such as Uber and Lyft. They also offer the usual slate of insurance for toys like boats, motorcycles, ATVs, motorhomes, and snowmobiles.
Allstate Financial Fitness
For a long time, Allstate was the third largest insurer, with a market share of 9.73 percent in 2016. But in 2017, it fell to fourth place with 9.29 percent of the market. Progressive jumped ahead to the No. 3 spot with 9.88 percent of the market, behind Berkshire Hathaway, owner of Geico, in second place and market leader State Farm.
Other Insurance Brands Related to Allstate
Allstate bought insurance company esurance in 2011 for $1 billion. It offers auto insurance in 43 states and 2 Canadian provinces. Though esurance has 3,000 service representatives, it has only 17 physical locations since the company emphasizes the online experience.