Allstate: Everything you need to know
Pros
Cons
Common coverage types
| Auto insurance | |
|---|---|
|
Coverage type |
What it pays for |
|
Collision coverage |
Damage or destruction of the vehicle resulting from an accident or other collision |
|
Comprehensive coverage |
Vehicle damage caused by vandalism, theft, hail, fallen trees and other covered losses |
|
Liability coverage |
Expenses related to injury, death, or property damage when the policyholder is at fault |
|
Medical payments coverage |
Medical expenses if the policyholder or their passengers are hurt |
|
Uninsured & underinsured motorist coverage |
Expenses if the other driver is at fault and does not have insurance |
|
Custom equipment coverages |
Cost of replacing stolen or damaged aftermarket parts, personal electronics, and audio and video equipment not installed by the manufacturer of the vehicle |
|
Roadside coverage |
Cost of common roadside services, including tire changes and jump-starts |
|
Personal injury protection |
Expenses related to injuries the policyholder sustains in a covered accident |
|
Personal umbrella insurance |
Liability above and beyond the policy’s liability underlying limits |
|
Rental reimbursement coverage |
Cost of renting a car or other transportation expenses while the insured vehicle is unavailable due to a collision or other covered loss |
Allstate’s auto insurance discounts
2021 J.D. Power customer satisfaction rating
870 out of 1,000 points (third among large auto insurers in the US)
Cost to insure most popular cars
Average annual cost in 2022 according to The Zebra:
#1. Ford F-150: $1,816
#2. Chevrolet Silverado: $1,863
#3. Dodge Grand Caravan: $1,854
#4. Toyota RAV4: $2,067
#5. Honda CR-V: $2,089
#6. Toyota Camry: $1,416
#7. Honda Civic: $1,440
#8. Toyota Corolla: $1,380
#9. GMC Sierra $1,815
#10. Chevrolet Equinox $2,165
Car insurance rates by age
2021 average rates according to US News:
25-year-old female: $1,920
25-year-old male: $1,994
35-year-old female: $1,760
35-year-old male: $1,740
60-year-old female: $1,635
60-year-old male: $1,679
Car insurance rates by driving record
2021 average rates according to US News:
$1,788 for clients with a clean driving record
$2,034 for drivers with one speeding violation
$2,514 for those with one accident, and
$2,624 for those with one DUI
| Home insurance | |
|---|---|
|
Coverage type |
What it pays for |
|
Dwelling coverage |
Damages to the physical structure of the home, including the walls and roof |
|
Personal property coverage |
The belongings inside the home, including furniture or bicycles, even if they were damaged or stolen outside the house |
|
Liability protection |
Expenses related to lawsuits stemming from personal injury occurring on the policyholder’s property or damage to someone else’s property |
|
Guest medical protection |
The cost of medical expenses for someone who is injured in the policyholder’s property |
Allstate’s home insurance discounts
2021 J.D. Power customer satisfaction rating
829 out of 1,000 points (tenth among homeowners’ insurance providers in the US)
| Life insurance | |
|---|---|
|
Coverage type |
Benefits |
|
Term life insurance |
Terms ranging from 10 to 30 years; offers guaranteed death benefit |
|
Universal life insurance |
Permanent life policies build cash value that insureds can withdraw or borrow against their lifetime |
|
Whole life insurance |
Combines death benefit with cash value that insureds can withdraw or borrow against |
|
Variable universal life insurance |
Offers investment options for the cash value component and a flexible death benefit |
Allstate’s life insurance discounts
Allstate offers bundling discounts for those purchasing auto, home, and life insurance. Policyholders can also save on premiums by reducing the amount of coverage or length of the policy term.
Other policies offered by Allstate:
Renters’ insurance, condo insurance, motorcycle insurance, business insurance, boat insurance, motorhome insurance, identity theft protection, ATV insurance, pet insurance, event coverage, landlord insurance
About
1. General background
The Allstate Corporation is the largest publicly held personal lines insurer in the US. Founded in 1931 as part of Sears, Roebuck & Co., the firm has grown into one of the most prolific US insurance companies, protecting more than 16 million households from life’s uncertainties.
This year, Illinois-domiciled Allstate ranked No. 70 on the Fortune 500 list of the largest US corporations by total revenue. Its current chairman, president and CEO is Thomas J. Wilson, who took the helm in 2007.
What product lines does Allstate cover?
Allstate’s major business is private passenger auto and homeowners’ insurance, primarily offered through agencies. These products are marketed under the Allstate®, Encompass® and Esurance® brand names. The company also offers life, renters’, condo, motorcycle, business, boat, motorhome, ATV, landlord, pet, identity theft and event cancellation insurance.
Allstate at a glance – 2021
Allstate is the fourth largest auto insurance provider in the US, taking up 9% of the overall market share.
The company also ranks second in terms of market share in the home insurance segment, accounting for 8.4% of the US total.
Allstate has about 16 million customers with more than 175 million policies in all 50 states and Washington, D.C.
The firm has an A+ rating for financial strength from AM Best.
2. History
The board of Sears, Roebuck & Co. approved the idea of the Allstate Insurance Company in 1931. On April 17, 1931, the retail giant started offering auto insurance by direct mail and through the Sears catalog. Three years later, Allstate opened its first permanent auto insurance sales office in a Chicago Sears store.
In the 1930s, Allstate became one of the first companies to create a sophisticated rate classification system, giving better rates to safe drivers. This was the start of a long history of consumer advocation. As Allstate reports: “In the 1960s, we helped pass historic legislation to save lives by making seatbelt use mandatory. In the 1970s and 1980s, we advocated for the safety benefits of airbags. We continue to take a public stand on issues that are important to consumers, from catastrophe preparedness to teen safe driving.”
Allstate started adding more insurance products to its books in the 1950s. In 1954, the firm started offering fire insurance, and in 1957 it began selling homeowners’ and life insurance. In 1953, Allstate began selling insurance to Canadians and the Allstate Insurance Company of Canada was incorporated in 1964.
The insurer became a publicly-traded company in 1993 when Sears sold 19.8% of the company, and, in 1995, Allstate became fully independent after Sears divested its remaining shares to Sears stockholders.
3. Distribution channels
All Allstate brand products are sold primarily through Allstate exclusive agencies and serve customers who prefer local personal advice and service. As of year-end 2020, the firm claimed to have 12,300 Allstate agencies and financial representatives in the US and Canada. The insurer describes each agency as “a small business in a local community, striving to become trusted advisors to Allstate customers.”
Allstate subsidiaries
The Allstate Corporation has several key subsidiaries, which are major insurance firms in their own right:
Encompass Insurance
Encompass Insurance is a large US P&C insurance brand sold exclusively through a network of more than 2,600 independent agents in 39 states. Allstate purchased Encompass from CNA Financial in 1999, when CNA chose to direct more attention toward commercial lines.
Esurance Insurance Services
Esurance is a direct-to-consumer brand, which distributes auto, home, motorcycle and renters’ insurance online and through call centers. It was founded in 1999 and was purchased by Allstate in 2011. At the time, Esurance was selling policies in 30 states and was in the midst of a five-year growth period that saw it double its number of policies in force.
Answer Financial
Answer Financial is one of the largest auto and home insurance agencies in the US, with over 3.8 million vehicles and homes insured. Products offered through Answer Financial include: auto insurance, homeowners’ insurance, condo insurance, renters’ insurance, motorcycle insurance, RV insurance & boat insurance. Customers from all 50 US states can buy insurance online or over the phone with assistance from a licensed insurance professional.
4. What customers are saying
In J.D. Power latest customer satisfaction rating, Allstate ranked third among the US’ large auto insurance providers, gathering a score of 870, which is a shade under the industry average. The firm also placed tenth among all home insurers, getting a customer experience rating of 829, four points above the segment average of 825. Allstate likewise ranked in the top five of the country’s renters’ insurance providers, scoring 833 of 1,000 when it comes to customer service.
Meanwhile, in the latest complaint index compiled by the National Association of Insurance Commissioner, Allstate got a 0.6 rating for auto insurance, which was slightly above the national average of 0.43. Its home insurance complaint index was 1.2, almost double the country’s average and the highest among all insurers. Delays was the most complaint against the company.
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