⚡ Quick Verdict
$2,605
Avg annual premium
A+
AM Best rating
1.10
NAIC complaint index
691
J.D. Power claims
🚨 The Allstate Loyalty Penalty
Allstate has been documented charging long-term customers significantly more than new customers for identical coverage:
What Research Shows:
- • Customers with 5+ years tenure pay 14-32% more than new customers
- • "Loyalty discounts" on your bill may mask larger base rate increases
- • Some long-term customers overpay by $1,200-$2,500/year
- • Allstate uses price optimization (in states where legal)
Translation: Allstate's algorithms predict you won't shop around, so they charge you more. That "loyalty discount" you see? It's often smaller than the hidden rate increase.
Company Profile
Basic Info
- Founded: 1931
- Headquarters: Northbrook, Illinois
- Type: Public company (ALL)
- Availability: All 50 states + D.C.
- Market Position: 4th largest auto insurer
Financial Strength
- AM Best: A+ (Superior)
- NAIC Complaint Index: 1.10 (above average)
- Claims Satisfaction: Below industry average
- Products: Auto, home, life, identity protection
đź’° Pricing Reality
| Metric | Allstate | National Avg | Difference |
|---|---|---|---|
| Full Coverage Auto | $2,605 | $2,314 | +13% |
| Monthly Average | $209 | $193 | +8% |
The reality: Allstate is consistently one of the most expensive major insurers. You're paying for the brand and agent network, not superior value.
Allstate's Unique Benefits
Accident Forgiveness
Your first at-fault accident won't raise your rates. Genuinely useful—but you pay for it in higher base premiums.
Deductible Rewards®
Your deductible decreases $100/year for each accident-free year, up to $500 total. Nice perk.
Safe Driving Bonus®
Cash bonus check every 6 months for accident-free driving. Small amounts, but tangible.
teenSMART® Discount
Lower GPA threshold than competitors for student discounts. Good for families with teen drivers.
âś“ What Allstate Does Well
Extensive Coverage Options
Rideshare coverage, sound system protection, classic car insurance—more options than most competitors.
Agent Network
Strong local agent presence if you want in-person service.
Financial Stability
A+ rated—they'll be around to pay claims.
❌ Where Allstate Falls Short
Price: Among the Highest
9-13% above national average. Often the most expensive carrier in comparisons.
Claims Satisfaction: Below Average
691/1,000 on J.D. Power. Only 77% of customers satisfied with claims handling—one of the lowest among majors.
Complaint Index: 1.10
10% more complaints than expected for their size. Worse than the national baseline.
Documented Loyalty Penalty
Long-term customers subsidize new customer acquisition. You're rewarded for leaving, not staying.
Who Should Choose Allstate?
âś“ Consider If You...
- • Need specialty coverage (rideshare, etc.)
- • Value accident forgiveness highly
- • Have teen drivers (teenSMART)
- • Want extensive add-on options
- • Prefer local agent service
❌ Look Elsewhere If You...
- • Want the best price (you won't get it)
- • Already a customer (shop around)
- • Prioritize claims experience
- • Don't need specialty coverages
- • Are price-sensitive
Our Verdict
Allstate's "good hands" slogan doesn't match the data. Higher prices, below-average claims satisfaction, and documented loyalty penalties make them hard to recommend. The unique add-ons (accident forgiveness, deductible rewards) are nice but don't justify the premium. If you're already an Allstate customer, shop around immediately—you're likely overpaying.