Allstate is so expensive because car insurance is expensive in general, due to rising costs for insurers. Allstate's premiums may also reflect how competitively Allstate agents are paid, but at $781 per year, the average Allstate car insurance policy is actually cheaper than coverage from most competitors. In fact, Allstate is one of the cheapest car insurance companiesnationally.
Even though Allstate offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $2,349 per year for Allstate insurance, compared to $804 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $1,277 per year for Allstate coverage, which is 64% more than drivers with a clean record.
Factors That Can Make Allstate Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing afull coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poorcredit-based insurance score
If you're struggling to afford your Allstate insurance, there are ways for you to lower your rate. For example, you can take advantage ofAllstate discountsor reduce your coverage.
In some cases, it might be better toswitch insurers altogether. It's usually a good idea tocompare quotesfrom at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if Allstate is charging you a high premium, you may be able to find a cheaper policy with another insurer.
To learn more, check out WalletHub's Allstate review.
This answer was first published on 10/18/23 and it was last updated on 03/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Inflation is the most significant cause of premium increases in 2024, with the average cost rising to $1,760 from $1,529. This has also driven increases in the costs of new and used cars and healthcare.
Did Allstate raise rates in 2024? ›
Implemented rate increases and inflation in insured home replacement costs resulted in a 12.1% increase in homeowners insurance average gross written premium in January 2024 compared to the prior year,” said Jess Merten, Chief Financial Officer of The Allstate Corporation.
Why did my auto insurance go up in 2024? ›
Car insurance rates increased 24% on average in 2023 and are projected to rise another 7% in 2024. These increases are largely the result of increased costs for insurers: As they pay more to settle claims, they pass on the costs to customers. The good news is that there are some things you can do to save money.
Why are Allstate rates so high? ›
Our payments to help customers recover from accidents and disasters have increased significantly over the last few years and we need to adjust rates to reflect the cost of providing the protection our customers depend on,” a company spokesperson told KTLA. The rate hike went into effect on Feb.
Who is more expensive State Farm or Allstate? ›
Allstate's average auto insurance rates are significantly higher than State Farm's. The average annual cost of a full-coverage policy from Allstate is $2,598. For State Farm, the average annual cost is $1,697.
Is Allstate being sold? ›
Allstate Corporation has closed the sale of its life and annuity business – Allstate Life Insurance Company (ALIC) – as well as certain other subsidiaries to entities operated by investment management company Blackstone. The transaction was first announced earlier this year.
Is Allstate or Progressive cheaper? ›
In terms of car insurance costs, Allstate is more expensive than other top competitors like Progressive, Geico and State Farm. In the category of affordability, we rate Progressive 7.8 out of 10.0 stars and Allstate 7.4 out of 10.0 stars.
Can you negotiate with Allstate? ›
If Allstate Insurances's initial offer is lower than you believe your vehicle is worth, you can prepare to negotiate. It's important to present facts that support your claim.
Is Allstate or Geico more expensive? ›
Geico and Allstate are both reasonably priced insurers for most drivers, but there are some clear differences when it comes to the average cost of their policies. As you can see in this chart, Geico is the cheaper of the two for the average driver.
Who is Allstate biggest competitor? ›
The main competitors of Allstate include Progressive (PGR), Travelers Companies (TRV), Arch Capital Group (ACGL), Markel Group (MKL), W. R. Berkley (WRB), Erie Indemnity (ERIE), Cincinnati Financial (CINF), Fidelity National Financial (FNF), CNA Financial (CNA), and Old Republic International (ORI).
These are the most expensive states for full-coverage car insurance:
- Michigan: $3,643 per year.
- Florida: $3,244 per year.
- Louisiana: $3,040 per year.
- Delaware: $2,881 per year.
- Nevada: $2,788 per year.
According to our rate averages, the most expensive car insurance often comes from The Hanover Insurance Group. The company's average rates for both liability and full-coverage insurance can be more than 400% higher than the national average.
Is Allstate good at paying homeowners claims? ›
Allstate is a well-established insurer with an A+ (Superior) rating from AM Best and a long-standing reputation of claims-paying ability.
What is the expected Fed rate for 2024? ›
At its March 2024 gathering the Fed decided to keep the federal funds target rate at 5.25% to 5.5%, where it has remained since July 2023.
Can Allstate Drivewise raise your rates? ›
No, Allstate Drivewise will not raise your rates for poor driving habits. Allstate Drivewise users are eligible for an initial discount of up to 40% just for signing up, and their rates will not go up for things like speeding or hard braking.
Why is Allstate laying off employees? ›
The reason behind Allstate layoff
Allstate used to be a captive carrier and took a huge step towards changing its approach to be a direct-to-customer focused company. This has certainly caused a huge impact on the agents and employees of the company.
Why does my insurance keep going up? ›
While it can seem arbitrary, there are actual reasons you can see your price go up and down. Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
