Allstate Auto Insurance ReviewThursday, 25 July 2013 01:27
The Allstate Corporation is a well-known personal lines insurance company that provides auto and many other forms of insurance to all 50 states, and it is currently the second largest auto insurance provider in the United States. Allstate has a strong brand awareness that has resulted from the company’s extensive ad campaigns, and it is one of the most financially stable and established insurance companies in the United States. Allstate offers a variety of insurance, financial and wealth transfer products. Those who are seeking auto insurance may benefit from the company’s unique discounts and safe driving reward programs.
Company Background Information
The Allstate Corporation was founded in 1931, is currently headquartered in Northbrook, Illinois, and employs over 35,000 people. Allstate is known for its extensive marketing campaigns on the internet, television and other mediums, and for its numerous sports sponsorships. The company is consistently rated as one of the best companies to work for by Diversity, Fortune and Forbes magazine among other publications. It is also rated as one of the “greenest” companies in the United States for its efforts to reduce water bottle pollution, office paper usage, and its other eco-friendly business practices.
Like other major insurance companies, Allstate has received criticism in the media and from customers. CNN investigated complaints from customers who accused Allstate of fighting auto insurance claims relating to injuries. Allstate also received criticism from several media outlets for alleged inconsistencies when using the controversial “Colossus” insurance program for claim processing. The company was rated 3 out of 5 by J.D. Power in its 2013 auto claims satisfaction study, was rated A+ (Superior) by A.M. Best in 2013 for its strong financial stability, and was given a credit rating of “aa-“which is considered to be stable.
Pros of Allstate Car Insurance
- Multiple insurance discounts and unique premium reducing programs
- A variety of different insurance products offered that allow for multiple policy discounts
- Affordable quotes for some customers
- Financially secure company with high claims satisfaction ratings from J.D. Power
Cons of Allstate Car Insurance
- Negative media coverage regarding claims processing practices
- Customer service issues and various problems with claims posted online
Allstate offers a large number of discounts to its policy holders including their popular Accident Forgiveness program. Eligibility for the discounts varies from one customer to another. Some of the discounts that Allstate offers include:
- An early signing discount for switching to Allstate prior to the expiration of a current policy
- A discount for coverage on new vehicles
- Discounts for retirees aged 55 or older
- Discounts for parents of children who go to school over 100 miles away
- Good student discounts for students under the age of 25
- A $100 deductible credit upon signing up and an extra $100 credit for every year that a person is insured
- Discounts for vehicles equipped with motorized seatbelts, anti-lock brakes, and anti-theft devices
- Multiple policy discounts for adding on renters, homeowners or life insurance
The Allstate website is one of the most elaborate insurance websites anywhere with a huge amount of detailed information on its insurance offerings, resources related to insurance, customer policy management tools and more. The website is one of the company’s best features and offers policy holders a modern and convenient way for them to manage their insurance plans.
Types of Insurance Offered
Allstate offers four different value insurance coverage options along with extra roadside services that can be bundled into auto plans.
- Value Plan – This is a cost saving plan that comes with the standard Allstate discounts offered to their policy holders as well as the Easy Pay Plan which allows customers to save money when they pay their insurance bill automatically. The Value Plan is designed to save as much money as possible, and it rewards safe driving with discounts of up to 45%. The plan includes free enrollment in the Good Hands Roadside Assistance program which reduces the cost of batteries, dead tires, and locksmith services.
- Standard Plan – This is a step up from the Value Plan and comes every that the Value Plan offers along with the Allstate Accident Forgiveness program. The Accident Forgiveness program keeps premiums from increasing following an at-fault accident, but not every policy holder is eligible. Policy holders who avoid an accident for six months can qualify for Allstate’s Safe Driver Bonus as well.
- Gold Package – The Gold Package has all of the features of the above mentioned plans and includes the Deductible Rewards program with $100 off collision deductibles per year, up to a maximum of $500, as well as the New Car Replacement program that offers a brand new vehicle instead of a check if a new car is totaled.
- Platinum Package – The Platinum Package includes everything above along with a Safe Driving Bonus that offers cash rewards of up to 5% of a premium in exchange for 6 months of safe driving.
There are a substantial number of negative reviews of Allstate online, but most other large insurers have a similar number of negative reviews in spite of their third party ratings. Reviews online described trouble with receive payment for claims, slow customer service, coverage being dropped without notification, and various other issues. In spite of these negative reviews, it should be noted that J.D. Power did award Allstate with 3 out of 5 power circles in their recent auto claims satisfaction survey which suggests an average customer experience with claims. Online complaints should not be taken to represent every Allstate customer; satisfied customers are less likely to post their experiences online than unhappy customers for any insurance company.
Those who are looking for auto insurance may be able to save more money with Allstate than other providers with the company’s unique discounts. Although the company has received some negative press it has a large and loyal customer base that maintains its status as the second largest auto provider in the U.S. Each customer will have a different experience with Allstate, so negative reviews should not stop someone from getting a quote and seeing if Allstate’s unique discounts are worth making a switch. If you are looking for a quote from providers like Allstate and other leading auto insurance companies, enter your zip code on this page and you’ll be able to compare quotes.
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|Market Share||Ranked 2nd|
|AM Best Score||A+|
|JD Power Rating||3 out of 5|
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