Allstate is one of the largest and most trusted insurance companies in the U.S., offering a variety of products and services to individuals and businesses. Allstate provides auto, home, life, health, and business insurance, as well as banking, investment, and retirement solutions. In this article, we will review the pros and cons of Allstate insurance, as well as its pricing and customer ratings.
Pros of Allstate Insurance
- Local agents nationwide: Allstate has a network of over 19,000 agents across the country, who can provide personalized service and advice to customers. You can easily find and contact a local agent near you, or access your account online or through the mobile app.
- Numerous discounts offered: Allstate offers many discounts to help customers save money on their insurance premiums. Some of the discounts include safe driving, good student, multiple policy, multiple vehicle, defensive driving, anti-theft, and passive restraint discounts. You can also save up to 30% by enrolling in the Drivewise program, which tracks your driving habits and rewards you for being a safe driver.
- Generous rental car and travel expenses coverage: Allstate covers the cost of a rental car if your vehicle is being repaired due to a covered loss, up to the limit of your policy. Allstate also covers your travel expenses, such as meals, lodging, and transportation, if you are involved in an accident more than 50 miles from your home.
- Superior financial strength: Allstate has an A+ rating from A.M. Best, which indicates its superior ability to pay out claims and meet its financial obligations. Allstate is also one of the largest and most stable insurance companies in the world, with over 90 years of experience and a global presence.
Cons of Allstate Insurance
- Poor customer satisfaction ranking: Allstate scored below average in the J.D. Power 2024 U.S. Auto Insurance Study and the J.D. Power 2024 U.S. Home Insurance Study, which measure customer satisfaction with various aspects of the insurance experience, such as billing, claims, policy offerings, and interaction. Allstate also received a 1.5/5 rating from Trustpilot and a 1.09/5 rating from Better Business Bureau customers, which indicate low levels of customer satisfaction and trust.
- High number of consumer complaints: Allstate had more than triple the expected number of complaints with the National Association of Insurance Commissioners (NAIC) given its size, which indicates problems with customer service, claims handling, or policy administration. The most common complaints were about delays, denials, or unsatisfactory settlements of claims, as well as billing or premium issues.
- Pricier average rates: Allstate’s average rates for auto and home insurance are higher than the national average, according to The Zebra and NerdWallet. Allstate’s average annual premium for auto insurance is $2,337, compared to the national average of $1,548. Allstate’s average annual premium for home insurance is $1,458, compared to the national average of $1,215. However, your actual rates may vary depending on your location, coverage, and other factors.
Pricing of Allstate Insurance
The pricing of Allstate insurance depends on several factors, such as the type and amount of coverage you choose, your personal and financial information, your driving and claims history, and your location. The best way to get an accurate quote for Allstate insurance is to contact an Allstate agent or visit its website. You can also compare quotes from different insurance companies using online tools like The Zebra or NerdWallet.
Here are some examples of Allstate’s average annual premiums for different types of insurance, based on data from The Zebra and NerdWallet:
- Term life insurance: $500,000 of coverage for a 40-year-old male nonsmoker for 20 years costs $411 per year.
- Universal life insurance: $250,000 of coverage for a 40-year-old male nonsmoker with a guaranteed death benefit and a 4% interest rate costs $2,340 per year.
- Auto insurance: Full coverage for a 40-year-old driver with a clean record and a 2024 Honda Accord costs $2,337 per year.
- Home insurance: $300,000 of dwelling coverage and $300,000 of liability coverage for a 2,500-square-foot home built in 2024 costs $1,458 per year.
Customer Ratings of Allstate Insurance
Allstate has mixed customer ratings from various sources, such as J.D. Power, Trustpilot, Better Business Bureau, and NAIC. Here are some of the ratings Allstate received from these sources:
- J.D. Power 2024 U.S. Auto Insurance Study: 2/5
- J.D. Power 2024 U.S. Home Insurance Study: 2/5
- Trustpilot: 1.5/5
- Better Business Bureau Customer Reviews: 1.09/5
- NAIC Complaint Index: 3.802 (above average)
Conclusion
Allstate is a reputable and financially strong insurance company that offers a wide range of products and services to individuals and businesses. Allstate has some advantages, such as local agents nationwide, numerous discounts offered, and generous rental car and travel expenses coverage. However, Allstate also has some drawbacks, such as poor customer satisfaction ranking, high number of consumer complaints, and pricier average rates. Therefore, before you buy Allstate insurance, you should compare quotes and reviews from other insurance companies to find the best option for you.
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