Allstate : Everything you need to know

Allstate: Everything you need to know

 

  • Headquarters address: 2775 Sanders Road, Northbrook, Illinois 60062
  • Total premiums written: $41.358 billion (2021)
  • Total premiums earned: $40.454 billion (2021)
  • Size (employees): 42,000+
  • Global locations: US, Canada, UK, India
  • Underwriting expertise: Auto insurance, home insurance, life insurance
  • Key people: Thomas Joseph Wilson (chair of the board, president and CEO), Elizabeth Brady (EVP, chief marketing, customer and communications officer), Eric Brandt (EVP, chief claims officer) Don Civgin (vice-chairman and CEO of protection products and services), John E. Dugenske (president of investments and financial products), Rhonda Ferguson (EVP, chief legal officer, general counsel, and secretary), Suren Gupta (EVP, Allstate Technology, Services & Ventures), Guy Hill (EVP, property-liability product) Jesse E. Merten (president, financial products), Julie Parsons (COO, property-liability), Mark Prindiville (EVP and chief risk officer), Mario Rizzo (EVP and CFO), Glenn Shapiro (president, property-liability), Steven P. Sorenson (EVP, corporate business transformation), Terrance Williams (EVP and general manager, Allstate Distribution)

 

Pros

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

 

Cons

  • The number of auto insurance complaints are above industry average.
  • The number of homeowners’ insurance complaints are double the industry average.
  • The 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-starts

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

 

Cost to insure most popular cars
Average annual cost in 2022 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 on 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 a 10% discount every year if they renew their policy
  • Homebuyer 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 the has theft or fire protection devices
  • Early signing discount – Up to 10% 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
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

1. 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. Its 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.

 

2. 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 airbags. 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.

 

3. 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 toward 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.

 

4. 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 Commissioner, 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 was the most complaint against the company. 

Allstate : In the news