Allstate’s tagline, “You’re in good hands,” has been synonymous with the company for decades. But how well does this insurer truly serve its customers? If you’re considering Allstate for your car insurance, you’re not alone it’s the fourth-largest auto insurer in the United States. This comprehensive guide will help you decide if Allstate is the right choice for your coverage needs.
Introduction to Allstate Auto Insurance
Allstate has been a household name in the insurance industry for over 70 years. Known for its wide array of coverage options and innovative policies, it caters to diverse customer needs. But is it the best fit for you? Let’s dive into the details.
Pros and Cons of Allstate Auto Insurance
The Advantages
- Coverage Variety: Allstate offers extensive coverage options, including accident forgiveness, rideshare insurance, and sound system protection.
- Convenient Online Tools: From quoting to policy management, Allstate provides a seamless online experience.
- Bundling Discounts: Combining auto and home insurance can save you up to 15%.
- Pay-Per-Mile Option: Ideal for low-mileage drivers looking to cut costs.
The Drawbacks
- High Premiums: Allstate’s rates are above average, especially for drivers with a less-than-perfect record.
- Mediocre Claims Satisfaction: A D+ rating from the CRASH Network highlights issues with their collision claims process.
- Limited Availability for Certain Policies: Programs like Milewise aren’t available in every state.
Who Should Consider Allstate?
Allstate is best suited for drivers with clean records and those looking to bundle their policies. Here’s a quick breakdown:
Best For
- Online shoppers who value convenience.
- Homeowners interested in bundling discounts.
- Low-mileage drivers exploring pay-per-mile insurance.
Not Ideal For
- Drivers with DUIs or at-fault accidents.
- Budget-conscious individuals seeking the cheapest rates.
Allstate Pricing: How Much Does It Cost?
Allstate’s pricing often exceeds the national average. While its policies are feature-rich, they may not suit everyone’s budget.
Rates by Driver Profile
| Driver Type | Allstate Average Annual Rate | National Average Annual Rate |
|---|---|---|
| Good driver with good credit | $2,639 | $1,924 |
| Driver with a DUI | $4,020 | $3,328 |
| Driver with bad credit | $3,878 | $3,315 |
Full Coverage vs. Minimum Coverage
Allstate’s full coverage is 37% higher than the national average, while minimum coverage is about 9% higher.
Maximizing Savings: Discounts and Tips
Discounts can significantly offset Allstate’s higher premiums. Here’s how you can save:
Highlighted Discounts
- Smart Student Discount: Offers savings for students under 25 with a GPA of 2.7 or higher or those completing a driving program.
- Drivewise Program: Rewards safe driving habits with up to a 40% discount.
- Bundling Policies: Combine auto, home, or life insurance for up to 15% savings.
- Paying in Full: Save 10% by paying your premium upfront.
Understanding Allstate’s Unique Features
Pay-Per-Mile Insurance
Allstate’s Milewise is perfect for drivers covering fewer than 325 miles monthly. Rates are a mix of a daily base fee and a per-mile charge.
Drivewise Program
Drivewise tracks speeding and hard braking. Safe habits can yield discounts, but poor performance may raise rates—a risk not present with some competitors.
My Personal Experience with Allstate
As a low-mileage driver, I tested Allstate’s quoting process. While the interface was user-friendly, the premium exceeded my current insurer by 15%. Milewise intrigued me, but its savings didn’t justify the switch given my mileage patterns.
Comparing Allstate to Competitors
State Farm
- Pros: Lower premiums for traditional policies.
- Cons: No pay-per-mile option.
Regional Insurers
- Pros: Often more affordable for specific demographics.
- Cons: Limited coverage options.
States Where Allstate’s Milewise Is Available
As of September 2024, Milewise is available in:
- Delaware
- Idaho
- Minnesota
- Washington
- Wisconsin
- West Virginia
Conclusion
Allstate shines with its extensive coverage options and digital tools but falters with high rates and mixed claims satisfaction. While it’s a strong contender for low-mileage drivers or those seeking comprehensive coverage, budget-conscious shoppers might fare better elsewhere.
FAQs
1. What makes Allstate’s coverage unique?
Allstate offers innovative options like rideshare insurance, accident forgiveness, and pay-per-mile plans.
2. Is Allstate affordable for young drivers?
Not typically. Premiums for young drivers are higher, but discounts like the Smart Student Discount can help.
3. How does Allstate’s Drivewise work?
Drivewise monitors your driving habits to offer discounts, but poor performance can increase your premium.
4. Who benefits most from Allstate’s Milewise?
Drivers covering fewer than 325 miles monthly can save significantly with Milewise.
5. What’s the best way to save with Allstate?
Combine policies, maintain safe driving habits, and pay premiums upfront to maximize discounts.
