Allstate Insurance Review 2021: Flexible Coverage, but Mixed Customer Reviews

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Founded in 1931, Allstate is now one of the largest insurance companies in the nation. It serves customers in all 50 states and Washington, D.C, offering all types of insurance coverages.

Allstate is one of the leading insurance companies in the nation with its size, reach, coverage options, and overall financial strength. However, its customer reviews are mixed, with some third-party ratings reporting double the average number of customer complaints. 

Ultimately it comes down to your specific needs as a consumer. Since insurance is one of the most important components of your financial picture, choosing a suitable carrier for the right cost and coverage is essential. 

Allstate Auto Insurance 

Allstate is the fourth largest provider of auto insurance coverage, with roughly 9.3% of the market share, according to the Insurance Information Institute (III). The company offers a variety of different coverages, with plenty of discounts.  

Types of Coverage 

Allstate offers all of the standard auto insurance coverage options, as well as a few extras that might appeal to prospective customers. The coverages the company offers are:

  • Collision coverage
  • Comprehensive coverage
  • Liability coverage
  • Medical payments coverage
  • Uninsured & underinsured motorist coverage
  • Sound system insurance
  • Roadside coverage
  • Personal injury protection
  • Personal umbrella insurance
  • Rental reimbursement coverage
  • Classic car insurance
  • Car insurance for travel to Mexico 

Cost of Allstate Auto Insurance 

According to Bankrate data, the average minimum coverage auto insurance policy costs about $565 per year in 2021, while the average full coverage policy costs about $1,674 per year. Keep in mind that costs vary depending on your location, coverage level, and many personal factors.

Allstate is one of the more expensive auto insurance providers. The company’s average minimum coverage premium is $696 per year, while its full coverage premiums are roughly $1,921 per year, according to the same Bankrate data. 

Allstate Auto Insurance Discounts 

  • Anti-lock brake discount
  • Anti-theft device discount
  • Multiple policy discount
  • Early signing discount
  • Responsible payer discount
  • Smart student discount
  • New car discount
  • Autopay discount
  • Paperless bill discount
  • Paid-in-full discount
  • Drivewise Program

Allstate Home Insurance 

Allstate is the second-largest writer of homeowners insurance premiums after State Farm, with roughly 8.4% of the market share.

Types of Coverage 

Allstate offers several standard types of homeowners insurance, and a few additional coverage options designed for certain types of homes or unique situations. The company offers the following coverage options:

  • Dwelling coverage
  • Personal property coverage
  • Liability protection
  • Guest medical protection
  • Personal umbrella insurance
  • Coverage for belongings when home-sharing
  • Manufactured/mobile home insurance
  • Flood insurance

Cost of Allstate Home Insurance 

The average annual cost of homeowners insurance is about $1,312 for a $250,000 home, according to data from Bankrate. Allstate’s average annual premium for a home of the same value is $1,458, above the national average. Keep in mind that your rate will depend on many factors, including your location, the value of your home, and more.

Allstate Home Insurance Discounts 

  • Multi-policy discount
  • Responsible payer discount
  • Claim-free discount
  • Welcome & loyalty discount
  • Homebuyer discount
  • Autopay discount
  • Protective device discount
  • Early signing discount

Allstate Life Insurance 

In addition to its more popular offerings of auto and homeowners insurance, Allstate also offers life insurance with several different types of policies available. 

Types of Coverage

Allstate offers four different options for life insurance coverage:

  • Term life: With terms ranging from 10-30 years. These policies offer a guaranteed death benefit in exchange for a relatively affordable fixed monthly payment.
  • Universal life: Permanent policies for life. These policies build cash value that you can withdraw or borrow against during your lifetime.
  • Whole life: Like universal life insurance, Allstate’s whole life insurance policies combine a death benefit with cash value that you can withdraw or borrow against.
  • Variable universal life: Offers investment options for the cash value component. It also has a flexible death benefit.

Cost of Allstate Life Insurance 

The cost of life insurance depends on various factors, including your age, the state of your health, and the amount of coverage you purchase. Rates can vary considerably, so it’s important to get a quote specific to your situation.

As an example, a healthy 35-year-old female in Wisconsin would pay $19 per month for $250,000 of coverage for a term of 20 years. This is slightly lower than the average of $22.95, according to Bankrate data. The rate would increase with more coverage or a longer policy term. It would also increase if the customer had any major health issues or participated in high-risk activities.

Allstate Life Insurance Discounts 

The only discount Allstate offers for its life insurance policies is a bundle discount when purchasing both auto and life insurance from the company. The only other ways to save on your premium are to reduce the amount of coverage or the length of the policy term.

Allstate Insurance Ratings, Customer Satisfaction, and Complaints 

Customers should pay close attention to national ratings when choosing an insurance company, according to Jason Newell, insurance broker and managing partner at 303 Insurance Brokers.

A variety of national organizations rate Allstate for its customer satisfaction and financial strength. Allstate has above-average claims satisfaction for both auto and homeowners insurance, according to J.D. Power studies. However, it has poor rankings with the NAIC (National Association of Insurance Commissioners) in all categories, with double the average complaints about home insurance. The top complaints about Allstate homeowners were unsatisfactory settlement offers and delays with claims handling.    

A.M. Best gives Allstate an A+ ranking for its financial strength, meaning you can rest assured the company has the financial ability to pay out claims.

Allstate Auto Insurance 

J.D. Power: 876/1,000 Industry Average: 872/1,000

NAIC: 1.02/1.00 (Slightly above average complaints)

A.M. Best: A+ (Superior)

Allstate Home Insurance 

J.D. Power: 882/1,000 Industry Average: 881/1,000

NAIC: 2.03/1.00 (Double-the-average complaints)

A.M. Best: A+ (Superior)

Allstate Life Insurance 

J.D. Power: N/A

NAIC: 1.66/1.00 (Above average complaints)

A.M. Best: A+ (Superior)

Allstate Pros and Cons

Pros

  • Above-average claims satisfaction with J.D. Power

  • Variety of coverage options

  • Plenty of discount offers

  • Life insurance rates can sometimes be below average

  • Option to bundle all three policies for home, auto, and life to optimize discounts

Cons

  • Above-average complaints with auto

  • Double-the-average complaints for homeowners

  • Above-average costs for auto and home policies

Other Policies Offered by Allstate 

In addition to its auto, homeowners, and life insurance policies, Allstate also offers various other coverage types to choose from. Other products the company offers are:

  • Renters insurance
  • Condo insurance
  • Motorcycle insurance
  • Business insurance
  • Roadside assistance
  • Identity protection
  • Boat insurance
  • Motorhome insurance
  • ATV insurance
  • Phone protection
  • Pet insurance
  • Event coverage
  • Landlord insurance
  • Retirement & investments
  • Employee benefits

Bottom Line

Insurance is one of the most important components of your overall financial picture. And while it may seem like a relatively minor thing compared to other day-to-day financial decisions, it has a greater impact on your overall financial health.

However, premium costs and customer satisfaction are essential things to consider. While Allstate has the reach and financial strength, its history of complaints is difficult to overlook, especially with homeowners. 

“You want to look at reviews from national organizations like J.D. Power to see where the company is. You want to make sure you’re dealing with an A+ rated company that will treat both you and others fairly during the claims process,” says Newell. 

Find coverages that fit your needs, and then shop for premiums based on the right coverages,” says Jason Pruitt, public insurance adjuster and regional director of Altieri Insurance Consultants. 

If Allstate costs more apples to apples than the same coverage by another provider, then you can decide if it’s the right choice for you.

Frequently Asked Questions 

Is Allstate a good insurance company?

Allstate is the fourth-largest provider of auto insurance and the second-largest provider of homeowners insurance. It has overall solid reviews from national organizations like J.D. Power and A.M. Best, but it has more complaints than average with the NAIC.

What coverages does Allstate offer?

Allstate offers a variety of insurance types, including auto, home, and life insurance. It also offers coverage for other types of homes and vehicles, as well as pet and business insurance.

What states does Allstate do business in?

Allstate offers insurance policies in all 50 states and Washington, D.C.

How much does Allstate insurance cost?

The cost of your Allstate insurance policy will depend on many factors, including the coverage type and amount, your location, and many personal factors, including your age, claims history, and credit score.