Why is Allstate so cheap? To answer this question, we need to dig deep into the history of the Allstate insurance company. It was founded in 1931. It started its operations by selling car insurance first. Since then, Allstate has found its roots in the insurance industry and become one of the top insurance companies. In 2020, Allstate was reported as the fourth-largest insurance provider company by the National Association of Insurance Commissioners (NAIC). Allstate touched the figure of $22.7 billion in insurance premiums in the respective year.
AM Best rating provider gave A+ financial ratings to Allstate, this shows the second-highest ranking by the insurance company. The ratings also show that Allstate can meet its financial obligations easily. Allstate has also got A+ financial ratings from Better Business Bureau (BBB).
Allstates insurance covers all the US states but certain discounts and extras differ from to state.
Allstate Auto Insurance Coverage
It’s a national insurance provider. It gives numerous coverage options. You can get all the available standard packages for car insurance with additional benefits and extras.
The available standard packages for car insurance are
- Collision car insurance
- Comprehensive car insurance
- Liability auto insurance
- Personal injury protection (PIP)
- Medical payments
- Uninsured/underinsured driver insurance
Additional car insurance packages
Apart from the above-mentioned insurance policies, Allstate offers certain other cheap auto insurance packages
- Rental reimbursement policy: If you have opted for this policy, you will be reimbursed when your car is in the shop.
- Rideshare coverage: This policy safeguards drivers driving for Uber or other such companies.
- Classic auto insurance policy: This policy provides agreed value for antique motors and spare parts.
- Audio system insurance: This policy provides coverage for damaged or stolen audio-visual equipment.
- Roadside insurance coverage: Hiccups like jump-start, fuel transportation, and spare tyre installations can be covered by this policy.
- Canada and Mexico auto insurance: For drivers who travel on either border, this insurance policy is beneficial.
Benefits And Add-Ons Of Allstate
While doing the research, we got to know certain benefits and add-ons that motorists may find interesting. On all policies, Allstate provides Claim Satisfaction Guarantee with a reward program.
With Claim Satisfaction Guarantee, Allstate offers credit amounting to six-month premiums if anyone is in doubt about the handling of the claim. This guarantee claim is available for the drivers of most states. Under the Allstate reward program, drivers can earn redeemable points and gift cards with safe driving habits.
Allstate pricing models
The pricing justifies the benefits offered by Allstate insurance. Some people are found saying why Allstate is so cheap. Even though others find it above the market prices. The average prices range is $2,792/year in the USA for a married driver of 35 years with a good driving record. Other insurance companies offer insurance policies for this criterion for $1,712.
The pricing models depend on a person’s specific situation, which also tells, which discounts will be available for you to get.
The discounts offered by Allstate insurance include:
- Anti-theft discounts
- Early signing discounts
- Anti-lock braking discounts
- Responsible for paying discounts
- New car discounts
- Paperless discounts
- Multi-policy discounts
- Good student discounts
- Autopay discounts
- Pay in full discounts
- Safe driving discounts