Allstate : Everything you need to know

Allstate: Everything you need to know

  • Headquarters address: 2775 Sanders Road, Northbrook, Illinois 60062
  • Total premiums written: $34.79 billion (2020)
  • Total premiums earned: $34.58 billion (2020)
  • Size (employees): 42,000+
  • Global locations: US, Canada, UK, India
  • Underwriting expertise: Auto insurance, home insurance, life insurance
  • Key people: Thomas Joseph Wilson – Board Chair, President, and CEO; Don Civgin – Vice Chairman and CEO of AIC; Mario Rizzo – CFO and Executive Vice President; John E. Dugenske – President of Investments and Financial Products of AIC; Jesse E. Merten – President of Financial Products of AIC

Pros

  • Rated above-average in claims satisfaction by J.D. Power
  • Offers a wide variety of coverage options
  • Provides generous discount offers to policyholders.
  • Some life insurance rates are below industry average
  • Gives clients the option to bundle home, auto, and life policies to maximize discounts

Cons

  • Number of auto insurance complaints is above industry average
  • Number of homeowners’ insurance complaints is double the industry average
  • Rates for auto and home insurance policies are above industry average

 

Common coverage types

Auto insurance
Coverage Type What it pays for
Collision coverage Damage or destruction of the vehicle resulting from an accident or other collision
Comprehensive coverage Vehicle damage caused by vandalism, theft, hail, fallen trees, and other covered losses
Liability coverage Expenses related to injury, death, or property damage when the policyholder is at fault
Medical payments coverage Medical expenses if the policyholder or their passengers are hurt
Uninsured & underinsured motorist coverage Expenses if the other driver is at fault and does not have insurance
Custom equipment coverages Cost of replacing stolen or damaged aftermarket parts, personal electronics, and audio and video equipment not installed by the manufacturer of the vehicle
Roadside coverage Cost of common roadside services, including tire changes and jump-start
Personal injury protection Expenses related to injuries the policyholder sustains in a covered accident
Personal umbrella insurance Liability above and beyond the policy’s liability underlying limits
Rental reimbursement coverage Cost of renting a car or other transportation expenses while the insured vehicle is unavailable due to a collision or other covered loss

 

Allstate’s auto insurance discounts

  • New car discount: If the vehicle is new and policyholder is the first owner
  • Multi-policy discount: For policyholders who bundle auto insurance with homeowners’ or renters’ insurance
  • Anti-lock brake discount: If the vehicle is equipped with anti-lock brakes
  • Anti-theft device discount: If the vehicle has an anti-theft device
  • Early signing discount: For drivers who sign their policies at least seven days before they become effective
  • Responsible payer discount: For policyholders who did not receive a cancellation notice for non-payment in the past year
  • Smart student discount: For full-time students under the age of 25 with good grades, who completed the teenSMART driver education program, and attend school at least 100 miles away from where the vehicle is garaged
  • EZ pay plan discount: For policyholders who set up automatic withdrawal for paying premiums
  • Allstate eSmart discount: For policyholders who go paperless by signing up for ePolicy
  • FullPay discount: For drivers who pay their policy in full
  • Safe driving club: For drivers who meet the safe driving requirements and make it into the club

 

2021 J.D. Power customer satisfaction rating (auto insurance)

870 out of 1,000 points (third among large auto insurers in the US)

 

Cost to insure most popular cars

Average annual cost in 2020 according to The Zebra:
1. Ford F-150: $1,816
2. Chevrolet Silverado: $1,863
3. Dodge Grand Caravan: $1,854
4. Toyota RAV4: $2,067
5. Honda CR-V: $2,089
6. Toyota Camry: $1,416
7. Honda Civic: $1,440
8. Toyota Corolla: $1,380
9. GMC Sierra $1,815
10. Chevrolet Equinox $2,165

 

Car insurance rates by age

2021 average rates according to US News:
25-year-old female: $1,920
25-year-old male: $1,994
35-year-old female: $1,760
35-year-old male: $1,740
60-year-old female: $1,635
60-year-old male: $1,679

 

Car insurance rates by driving record

2021 average rates according to US News:
$1,788 for clients with a clean driving record
$2,034 for drivers with one speeding violation
$2,514 for those with one accident, and
$2,624 for those with one DUI

 

Home insurance
Coverage type What it pays for
Dwelling coverage Damages to the physical structure of the home, including the walls and roof
Personal property coverage The belongings inside the home, including furniture or bicycles, even if they were damaged or stolen outside the house
Liability protection Expenses related to lawsuits stemming from personal injury occurring in the policyholder’s property or damage to someone else’s property
Guest medical protection The cost of medical expenses for someone who is injured in the policyholder’s property

 

Allstate’s home insurance discounts

  • Multi-policy discount: Up to 25% discount when bundling home and auto policies
  • Responsible payment discount – For policyholders with a good payment history
  • Claim-free discount: Up to 20% discount for clients who switch to Allstate without a recent home insurance claim
  • Welcome & loyalty discount: Up to 10% discount on home insurance premium for clients who switch to Allstate and 10% discount every year if they renew their policy
  • Home buyer discount: For recent home buyers and those who bought a newly constructed home
  • Easy Pay Plan: Up to 5% for policyholders who set up automatic payments
  • Protective device discount: If house the has theft or fire protection devices
  • Early signing discount: Up to 10% discount on home insurance premium for policyholders who sign up for a new policy at least seven days before the current one expires

 

2021 J.D. Power customer satisfaction rating (home insurance)

829 out of 1,000 points (tenth among homeowners’ insurance providers in the US)

 

Life insurance
Coverage type Benefits
Term life insurance Terms ranging from 10 to 30 years; offers guaranteed death benefit
Universal life insurance Permanent life policies build cash value that insureds can withdraw or borrow against their lifetime
Whole life insurance Combines death benefit with cash value that insureds can withdraw or borrow against
Variable universal life insurance Offers investment options for the cash value component and a flexible death benefit

 

Allstate’s life insurance discounts

Allstate offers bundling discounts for those purchasing auto, home, and life insurance. Policyholders can also save on premiums by reducing the amount of coverage or length of the policy term.

 

Other policies offered by Allstate:

Renters’ insurance, condo insurance, motorcycle insurance, business insurance, boat insurance, motorhome insurance, identity theft protection, ATV insurance, pet insurance, event coverage, landlord insurance

 

About

General background

The Allstate Corporation is the largest publicly held personal lines insurer in the US. Founded in 1931 as part of Sears, Roebuck & Co., the firm has grown into one of the most prolific US insurance companies, protecting more than 16 million households from life’s uncertainties.

This year, Illinois-domiciled Allstate ranked No. 70 on the Fortune 500 list of the largest US corporations by total revenue. It’s current chairman, president and CEO is Thomas J. Wilson, who took the helm in 2007.

 

What product lines does Allstate cover?

Allstate’s major business is private passenger auto and homeowners’ insurance, primarily offered through agencies. These products are marketed under the Allstate, Encompass, and Esurance brand names. The company also offers life, renters’, condo, motorcycle, business, boat, motorhome, ATV, landlord, pet, identity theft and event cancellation insurance.

 

Allstate at a glance – 2021

  • Allstate is the fourth largest auto insurance provider in the US, taking up 9% of the overall market share.
  • The company also ranks second in terms of market share in the home insurance segment, accounting for 8.4% of the US’ total.
  • Allstate has about 16 million customers with more than 175 million policies in all 50 states and Washington, D.C.
  • The firm has an A+ rating for financial strength from AM Best.

 

History

The board of Sears, Roebuck & Co. approved the idea of the Allstate Insurance Company in 1931. On April 17, 1931, the retail giant started offering auto insurance by direct mail and through the Sears catalog. Three years later, Allstate opened its first permanent auto insurance sales office in a Chicago Sears store.

In the 1930s, Allstate became one of the first companies to create a sophisticated rate classification system, giving better rates to safe drivers. This was the start of a long history of consumer advocation. As Allstate reports: “In the 1960s, we helped pass historic legislation to save lives by making seatbelt use mandatory. In the 1970s and 1980s, we advocated for the safety benefits of air bags. We continue to take a public stand on issues that are important to consumers, from catastrophe preparedness to teen safe driving.”

Allstate started adding more insurance products to its books in the 1950s. In 1954, the firm started offering fire insurance, and in 1957 it began selling homeowners’ and life insurance. In 1953, Allstate began selling insurance to Canadians and the Allstate Insurance Company of Canada was incorporated in 1964.

The insurer became a publicly traded company in 1993 when Sears sold 19.8% of the company, and, in 1995, Allstate became fully independent after Sears divested its remaining shares to Sears stockholders.

 

Distribution channels

All Allstate brand products are sold primarily through Allstate exclusive agencies and serve customers who prefer local personal advice and service. As of year-end 2020, the firm claimed to have 12,300 Allstate agencies and financial representatives in the US and Canada. The insurer describes each agency as “a small business in a local community, striving to become trusted advisors to Allstate customers.”

 

Allstate subsidiaries

The Allstate Corporation has several key subsidiaries, which are major insurance firms in their own right:

 

Encompass Insurance

Encompass Insurance is a large US P&C insurance brand sold exclusively through a network of more than 2,600 independent agents in 39 states. Allstate purchased Encompass from CNA Financial in 1999, when CNA chose to direct more attention towards commercial lines.

 

Esurance Insurance Services

Esurance is a direct-to-consumer brand, which distributes auto, home, motorcycle, and renters’ insurance online and through call centers. It was founded in 1999 and was purchased by Allstate in 2011. At the time, Esurance was selling policies in 30 states and was in the midst of a five-year growth period that saw it double its number of policies in force.

 

Answer Financial

Answer Financial is one of the largest auto and home insurance agencies in the US, with over 3.8 million vehicles and homes insured. Products offered through Answer Financial include auto insurance, homeowners’ insurance, condo insurance, renters’ insurance, motorcycle insurance, RV insurance & boat insurance. Customers from all 50 US states can buy insurance online or over the phone with assistance from a licensed insurance professional.

 

What customers are saying

In J.D. Power latest customer satisfaction rating, Allstate ranked third among the US’ large auto insurance providers, gathering a score of 870, which is a shade under the industry average. The firm also placed tenth among all home insurers, getting a customer experience rating of 829, four points above the segment average of 825. Allstate likewise ranked in the top five of the country’s renters’ insurance providers, scoring 833 of 1,000 when it comes to customer service.

Meanwhile, in the latest complaint index compiled by the National Association of Insurance Commissioners (NAIC), Allstate got a 0.6 rating for auto insurance, which was slightly above the national average of 0.43. Its home insurance complaint index was 1.2, almost double the country’s average and the highest among all insurers. Delays were the most common complaint against the company.

 

Allstate : In the news