Choosing the right car insurance company is a crucial decision for any driver in the United States. With numerous options available, it can be challenging to determine which provider offers the best combination of coverage, customer service, and affordability. Allstate, a well-known and established insurer, is often considered by drivers seeking car insurance. This article aims to provide an objective and comprehensive overview of Allstate as a car insurance company, weighing its pros and cons, coverage options, cost, customer reviews, and alternatives to help you make an informed decision.
Allstate: A Brief Overview
Allstate was founded in 1931 and has grown to become one of the largest car insurance companies in the United States. In addition to auto insurance, they offer a wide range of other insurance products, including homeowners, renters, and motorcycle insurance. Known for its memorable slogan, “You’re in good hands,” Allstate aims to provide peace of mind to its customers. Allstate car insurance is available in all 50 states and Washington, D.C., making it a widely accessible option for drivers across the country. You can obtain a quote and purchase a policy either online or through one of their many insurance agents.
Pros and Cons of Allstate Car Insurance
Like any insurance provider, Allstate has its strengths and weaknesses. Understanding these can help you determine whether Allstate is the right fit for your individual needs.
Pros:
- Wide Range of Coverage Options: Allstate offers a variety of standard and optional coverages, including collision, comprehensive, liability, medical payments, and uninsured/underinsured motorist coverage.
- Nationwide Coverage: Allstate operates in all 50 states and Washington, D.C., providing consistent coverage no matter where you are in the country.
- Large and Established Company: As one of the largest car insurance companies, Allstate has the financial stability and resources to handle claims efficiently.
- Additional Coverage Options (Riders): Allstate provides several add-ons such as rental reimbursement, roadside assistance, new car replacement, rideshare coverage, classic car insurance, and Mexico car insurance coverage, offering flexibility and tailored protection.
Cons:
- Expensive Premiums: Allstate’s insurance rates are typically higher than those of its competitors, including State Farm and GEICO.
- Negative Customer Reviews: Allstate has received many negative customer reviews, particularly regarding policy lapses, billing issues after cancellation, and poor claims and customer service experiences.
- Subpar Claims Experience: JD Power’s Claims Satisfaction Study shows that Allstate scores below the study average, indicating potential difficulties when filing a claim.
- Captive Agents: Allstate utilizes captive agents, meaning they can only quote Allstate products, potentially limiting your options compared to working with an independent agent.
Allstate Car Insurance Plans Available
Allstate offers a variety of standard car insurance plans:
1. Collision Coverage: Pays for damages to your car if you collide with another vehicle or object.
2. Comprehensive Coverage: Pays for damages caused by events like theft, vandalism, hail, or animal collisions.
3. Liability Coverage: Covers damages or injuries you cause to others in an accident.
4. Medical Payment Coverage: Covers medical expenses for you and your passengers, regardless of fault.
5. Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver with insufficient or no insurance.
Additional Coverage Options (Riders)
Allstate offers various additional coverage options (riders) to customize your policy:
1. Rental Reimbursement Coverage: Reimburses you for rental car costs while your vehicle is being repaired after a covered accident.
2. Roadside Assistance: Provides services like towing and jump-starts if you’re stranded.
3. New Car Replacement: Replaces your totaled new car with a new one.
4. Rideshare Coverage: Provides coverage while driving for rideshare companies like Uber or Lyft.
5. Classic Car Insurance Coverage: Covers the unique value of restored or custom classic cars.
6. Mexico Car Insurance Coverage: Provides coverage when driving in Mexico.
7. Deductible Rewards: Reduces your collision deductible by $100 each year of claim-free driving, up to $500.
8. Accident Forgiveness Coverage: Prevents your rates from increasing after an accident.
9. Extended Vehicle Care Coverage: Covers mechanical breakdowns after your vehicle’s warranty expires.
10. Trip Interruption Coverage: Reimburses you for lodging and meals if you’re in an accident away from home.
11. Gap Insurance: Covers the difference between your car’s value and your remaining loan balance if it’s totaled.
How Much Does Allstate Car Insurance Cost?
Allstate’s insurance rates tend to be higher than those of its competitors. However, the exact cost depends on several factors, including your driving record, age, location, and the type of coverage you choose. According to Policygenius, required state minimum coverage averages around $750 annually, while full coverage can range from $2,055 to $2,097 per year. Bundling your car insurance with other Allstate policies can potentially lower your premium.
Customer Reviews and Ratings
Customer reviews and ratings can provide valuable insights into the experiences of other Allstate policyholders. While individual experiences may vary, it’s helpful to consider overall trends.
- Better Business Bureau (BBB): Allstate typically has low customer review ratings.
- Trustpilot: Allstate has very low customer review ratings.
- Consumer Affairs: Allstate has very low customer review ratings.
- Wallethub: Allstate has slightly better, but still below average, customer review ratings.
- JD Power: Allstate ranks highly in customer satisfaction in Florida, New England, and the North Central region but scores below average in nearly all other regions.
Overall, Allstate’s customer reviews suggest that many policyholders experience issues with claims handling and customer service, which is a crucial factor to consider.
Allstate Car Insurance Alternatives
If you’re not sure whether Allstate is the right choice for you, it’s worth exploring some alternatives. Here are two major competitors to consider:
- State Farm: State Farm generally offers better customer and claims satisfaction ratings than Allstate. State Farm is slightly cheaper. One advantage Allstate has is its many riders, which allow customers to get specialty coverage.
- GEICO: GEICO typically offers cheaper rates than Allstate, particularly for teens and drivers with violations. GEICO works almost exclusively online, which might be preferable if you’re comfortable managing your policy digitally.
Why You Should Consider Allstate
Despite some of the drawbacks, Allstate might be a suitable option for drivers with unique insurance needs. For example, if you own a classic car, drive for a rideshare company, or frequently travel to Mexico, Allstate’s specialized coverage options could be beneficial. Additionally, if you value personalized service and prefer to work with a local agent, Allstate’s agent network might be appealing.
Purchasing and Managing an Allstate Car Insurance Policy
You can purchase an Allstate car insurance policy online, over the phone, or through a local agent. To expedite the process, have your personal information, vehicle details, driving history, and desired start date ready. Once you have a policy, you can manage your account online or through the Allstate mobile app, where you can pay your bill, view policy documents, start a claim, request roadside assistance, and update your information.
Filing a Claim with Allstate
If you need to file a claim, you can do so online, through your agent, or by calling Allstate’s claims team. Be prepared to provide details about the accident, including contact information, vehicle and insurance information, photos of the damage, and a copy of the police report. Remember that you’ll need to pay your deductible before Allstate covers the remaining costs.
Conclusion
“Is Allstate a good car insurance company?” The answer depends on your individual circumstances and priorities. Allstate offers a wide range of coverage options and is financially stable, but its premiums tend to be higher than competitors, and customer reviews suggest some concerns about claims handling and customer service. Carefully weigh the pros and cons, compare quotes from multiple insurers, and consider your specific needs before making a decision. By doing your research, you can find a car insurance company that provides the best value and protection for you and your vehicle.
