Allstate Auto Insurance Review

Pros Explained

• Car insurance for unique needs: In addition to standard car insurance, Allstate also offers classic car insurance and car insurance in Mexico. 
• Generous discount program: There are 10+ different discounts to help lower the cost of car insurance. 
  
• Multiple options for roadside assistance: Allstate goes above and beyond with 24/7 support when you subscribe to one of its plans for roadside assistance.

Cons Explained

• Poor customer satisfaction: Allstate consistently rates below average for customer satisfaction in both J.D. Power ratings and the NAIC complaint index. 
• Extra cost for roadside support: Customers must subscribe to an additional roadside assistance package to benefit from this service. 
• Policies sold in six-month terms: Allstate only sells car insurance policies lasting six months instead of a year.

Introduction

Allstate Insurance Company is a leading national provider of several types of insurance including auto, home, life, motorcycle, renters, and off-road insurance. It is particularly well-known in the auto insurance industry for its long history and full suite of insurance products. 

However, based on your needs, Allstate might not be the best option, so you’ll need to weigh the pros and cons to find the best car insurance companies that are right for you.

Company Overview

Allstate was founded in 1931 by General Robert E. Wood, the President and Board Chairman of Sears, Roebuck & Co. He applied the same insurance model to his stores, starting an insurance company that sells insurance via mail.

Today, Allstate has the distinction of being the largest publicly-held personal insurer in the U.S. with over 189 million policies in force. It is headquartered in Northbrook, Illinois, where it services all 50 states. Allstate may use various subsidiary underwriting companies in certain states to comply with their laws and regulations.

Allstate claims to support its customers, but the company is currently involved in a Florida consumer class action suit regarding spam texting using personal numbers allegedly purchased from data aggregation companies. It also settled a class action suit representing policyholders in 38 different states. The case included over 13,000 home insurance policyholders who were underpaid for claims by Allstate when the company used a different method to value damaged property than what their policies indicated.

Types of Coverage

Allstate offers multiple standard and optional plans for car insurance. 

Standard Car Insurance Coverage

Allstate offers many of the traditional types of insurance coverage most drivers need to protect themselves and others while behind the wheel. 

Collision Coverage

If you are involved in an accident, your collision coverage handles the cost of any damages made to your vehicle. 

Comprehensive Coverage

Comprehensive coverage handles non-collision damages resulting from things such as hail, fallen trees, theft, vandalism, and more.

Liability Coverage

If you are at fault in an accident, liability protection can cover property damage, injury, or even the death of another party.

Medical Payments Coverage

Medical payments coverage includes protection for any injuries affecting you and any of your passengers that were sustained during an accident.

Uninsured and Underinsured Motorist Coverage

If you are involved in an accident with an uninsured, at-fault driver, uninsured and underinsured motorist coverage can help cover any damages you incur.

Personal Injury Protection

Personal injury protection, or PIP, protects you should you experience injuries during an accident covered by your insurance policy.

Specialty Coverage

Personal Umbrella Policy

If you need additional protection, an umbrella policy provides extended coverage beyond the limits of your standard policy.  

Rental Reimbursement Coverage

If your vehicle is damaged from a covered loss, such as a collision, you can purchase additional rental reimbursement coverage to cover a rental car or other eligible transportation while your vehicle is being repaired. 

Classic Car Insurance

If you drive an antique or classic car, regular auto insurance may not be enough to cover any damages you incur. Instead, classic car insurance from Allstate offers additional coverage to reflect the unique value of your vehicle, and the potential difficulty of repairing or replacing it.  However, it is important to note that classic car insurance is sold via Allstate but provided by Hagerty Insurance Agency, LLC, a third-party provider.

Mexico Travel Car Insurance 

If you plan to travel to Mexico, you can purchase car insurance to protect your vehicle in case of an incident during your trip. This separate coverage is added to your regular domestic car insurance policy for drivers in both the U.S. and Canada with coverage available for up to one year.

Roadside Assistance Plan

If you run into trouble on the road, Allstate offers optional roadside assistance plans. This can include 24/7 coverage for things like changing a tire, jumpstarting your car, or providing tow service. You can also receive additional perks like discounts and resources for travel or buying a new car. 

There are two plans for Allstate’s roadside assistance. Coverage is available to all drivers, regardless of whether you are an Allstate policyholder. 

Allstate is also one of our picks for the best temporary car insurance. 

Discounts

Allstate offers more than 10 discounts to help you cut car insurance costs. Note that, for many of these, it’s unclear upfront how much of a discount you’ll receive; you’ll need to speak with a company representative or sign up for a policy first. 

Drivewise

Allstate’s signature Drivewise program is available exclusively to Allstate auto insurance policyholders in all U.S. states (except New York). With the Drivewise program, you can save over 40% off normal insurance rates by enrolling in the program. It is a type of telematics-based system that offers lower rates and discounts in exchange for safe driving. You simply download the Allstate mobile app and can then earn cashback up to twice a year.  

The app also includes free crash detection, automatically offering help if it detects a serious accident.

New Car Discount

You could earn a discount if you recently bought a brand-new car. When you are the first owner of a new vehicle, Allstate may discount your policy.

Multiple Policy Discount 

Car insurance is not the only insurance you are likely to need, which is where bundling your insurance policies can save you a ton of your annual premiums. Whether you need a renters or homeowners insurance policy, it could be well worth it to purchase all of your policies from Allstate in order to receive an extra discount.

Smart Student Discount

If you earn good grades in high school or college, Allstate could reward you with extra savings off your annual premium. 

Unmarried students under the age of 25 are eligible when they meet one of three terms:

• Average a minimum GPA of 2.7 or grades averaging a minimum B-
• Successful completion of the teenSMART driver education program
• Enrollment at a school that is a minimum of 100 miles away from where you garage your car

Anti-lock Brake Discount

The car you drive can save you money, too. Allstate will also reward you with a discount when your car is equipped with anti-lock brakes.

Anti-theft Device Discount

There is also an anti-theft discount if your car has a security device like an alarm or other similar device.

Safe Driving Club

When you are a safe driver, it lowers the risk to an insurer, too. Allstate passes those savings on to its customers with discounts through its Safe Driving Club.

Early Signing Discount

Receive additional savings on your new quote when you renew your policy at least seven days before it becomes effective.

Responsible Payer Discount

When you make all of your payments on time for the last year, you can save extra money when there are no cancellation notices on your account.

EZ Pay Plan Discount

Simplify your life with automatic withdrawals for your regular premiums and receive a discount when you use automatic withdrawals to pay.

Allstate eSmart Discount

You can also save when you enroll in Allstate’s ePolicy program for paperless statements.

FullPay Discount

You can also receive upfront savings when you pay for your policy in full.

To find out which discounts can apply to your policy, contact your Allstate agent or customer support.  

Payment Options

Paying your Allstate premium is simple with several methods of payment for auto insurance policies: 

• Your bank account with routing and account numbers
• American Express, Discover, MasterCard, and Visa
• Personal checks and money orders

If you pay online or use the app, you can save your payment method for easy payments in the future.

Loss Ratio

In its 2022 1st quarter report, Allstate shows its recorded property-liability combined ratio. This figure represents a company’s losses divided by its profits, with companies scoring over 100 named unprofitable. Allstate is right below that point with a ratio of 97.3% in the first quarter of 2022. It is an increase of 14% from 83.3% in 2021. Based on these scores, Allstate will likely demonstrate excellent claims service, though it may charge higher than other companies for it.

How to Make a Claim

It is easy to file a claim with Allstate. There are several ways to file your claim:

• Online MyAccount
• Allstate’s mobile app with QuickFoto Claim
• Call your local agent

There is also a claim tracking option so you can stay informed of where your claim is in the process.  

However, if you are filing a claim for the National Flood Insurance Program, you will need to complete an online flood loss claim report or call 800-54-STORM.

Customer Service

Contacting Allstate is simple, with 24/7 support and multiple contact options. If you are a new customer, you can use the online search locator to find a local agent. There is also a helpful FAQ page that you can visit for answers to popular questions. Existing policyholders can text ALLSTATEAPP to 25788 for a link to download the Allstate mobile app.

Live chat is available, plus there are several separate departments available to help with specific issues.

Customer Satisfaction

Although there are many ways to contact the company, Allstate’s customer service consistently ranks below its competitors. 

Third Party Ratings

Each year, industry expert J.D. Power publishes studies evaluating the insurance industry. In the 2022 U.S. Auto Insurance Study, Allstate mostly received below-average scores. It only managed to score above average in three of 11 regions. J.D. Power’s 2022 U.S. Insurance Shopping Study, Allstate also ranks below average.

Another ranking comes from AM Best, a ratings provider that examined a company’s financial strength. Here, Allstate ranks highly with an A+ (Superior) score, demonstrating strong financial strength and claims reliability. 

Complaint Index

The National Association of Insurance Commissioners (NAIC) is another judge of a company’s customer service. It collects the number of complaints an insurer receives each year and then finds the annual score using a 1.00 score as the industry baseline. The lower the score, the better.

During 2020 through 2022, Allstate received complaint indexes far greater than 1.00 in all three years. With indexes of 2.60, 2.68, and 2.42, Allstate received far more complaints than expected for its size. These scores represented Allstate's complaints across all products. In the private passenger vehicle category, its indexes are lower, but still not good, coming in at 1.00, 1.39, and 1.09 from 2020 to 2022. 

Account Management

Managing your account is easy with the Allstate mobile app. You can file and track claims with a simple upload feature for photos, as well as go through the steps of Allstate’s claims process including:

• Damage inspection with guidance for estimates and repairs
• Repairs process
• Payment reimbursement with detailed settlement agreement

General customer support is available by calling 1-800-726-6033, and there is 24/7 live chat support. For other questions or to cancel your policy, you can contact your Allstate agent directly. 

How Allstate Compares to Other Auto Insurance Companies

Allstate has multiple options for coverage, far more than the usual provider, as well as a generous discount program. There are also exclusive programs available, like its Drivewise and student driver programs. Overall, Allstate offers expanded options for auto insurance compared to other leading providers.

Allstate is often more expensive than other providers like Progressive, USAA, and Nationwide. In its ratings, Allstate is financially sound with an A+ AM Best rating but lags behind competitors in customer service. Companies like USAA, Erie, and State Farm all average higher scores from J.D. Power. Still, there are plenty of ways to receive support, with many more options than other companies. Also available are live chat, 24/7 automated payments, and a mobile claims process to help keep you in control of policy.

Final Verdict

Allstate offers an expanded menu of auto insurance coverage with a wide array of discounts. Signature programs like its smart student savings plan and its Drivewise program are creative ways to save on everyday insurance premiums. Allstate's convenient mobile and online tools make it easy to manage your policy yourself.

However, with poor customer satisfaction scores, customer service is largely lacking. Given its many mobile tools for account management, Allstate is likely a better fit for more tech-savvy users who do not mind using online and mobile tools for account management, live chat, automated payment support, mobile claims filing, and claims tracking.

Frequently Asked Questions

Are Allstate Rates High?

Allstate's rates are higher than many competitors, though its coverage is also more expansive. Allstate also offers more discounts than many other car insurance companies. If you can qualify for one of these discounts, such as Drivewise or a multiple policy discount, this can bring your rate down to a more competitive level. If you don't qualify for a discount, you may find that Allstate's rates are higher than you can get elsewhere.

Does Allstate Deny Claims?

Allstate notes that it can deny claims when your policy has lapsed due to missed payments when accidents are caused by illegal behavior (such as a DUI), or because the damages were not covered by the policy. However, customer complaints and lawsuits indicate that many Allstate policyholders have had their claims denied or underpaid. A national class action lawsuit, for example, was brought against Allstate for underpaying home insurance claims that should have been covered.

How Fast Does Allstate Pay Claims?

The average time it takes for a claim to be processed varies depending on the type of claim you file and how long it takes to get an estimate and have repairs done. How long it takes for you to receive payment after repairs are made and your claim is accepted depends on the type of payment you choose. Allstate's Quick Card Pay is the fastest, usually taking 24 hours or less. Fast Mobile e-Payment takes 48 hours or less. Direct deposit can take two to five business days, while receiving a check can take seven to 10 business days.

What Is Allstate's AM Best Rating?

Allstate receives an A+, or Superior, rating from AM Best. This indicates that the company and its subsidiaries demonstrate financial strength and reliability.

Did Allstate Have a Rate Increase?

In some places, Allstate has increased auto insurance rates due to changes to government policies at the state level. For example, at the end of 2022, California approved rate hikes in auto insurance from Allstate and other insurers. Insurance costs have also increased due to a rise in accidents and claims, as well as higher costs of labor and parts raising the price of repairs. Allstate may also increase the cost of individual policies due to factors like prior claims.

Methodology

Investopedia is committed to providing readers with unbiased, comprehensive reviews of auto insurance companies. All of our reviews are based on extensive research and analysis of each company’s coverage, customer service, pricing, years in business, accreditation, and more. To rate providers, we developed an auto insurance review methodology that compares the auto insurance coverage types, additional features, discounts, account management, and other features.