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
Many factors contribute to Allstate being expensive, including rising costs for insurance companies and the way it pays its agents. Damage claims and payouts also factor into its higher-than-average rates.
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 is my Allstate bill so high? ›
Insurers usually weigh several factors when it comes to car insurance rates. Common among them are speeding tickets, DUIs, credit and moving violations. But beyond that, insurers also consider specific risks like the rates of accidents, vandalism and theft in your area, which result in higher claim rates.
Why did my auto insurance go up in 2024? ›
An increase in severe accidents is one factor, according to the Insurance Information Institute. Supply chain issues and more complex technology have also fueled new car prices, which in turn has been driving up premiums, according to the Congressional Research Service.
Who is cheaper than Allstate? ›
Geico and USAA are among the insurance companies that are cheaper than Allstate.
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.
Why does Allstate make you pay so much up front? ›
The California Department of Insurance provided this statement to KTLA. “The Department's thorough review found that Allstate overstated certain loss projections. The authors of Prop. 103, Consumer Watchdog, agreed to the 30% rate increase on California drivers under the current regulatory structure.”
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.
How is Allstate doing financially? ›
The Allstate Corporation has made a huge turnaround, reporting $1.2 billion in net income applicable to common shareholders in the first quarter of 2024 following last year's Q1 net loss of $346 million.
Why is Allstate losing customers? ›
Both companies are blaming climate change and inflation, saying they can't make money here. "The cost to insure new home customers in California is far higher than the price they would pay for policies," read a statement issued by Allstate.
Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.
Are insurance companies overcharging? ›
After a systematic review of data submitted by insurance companies — the only such review in the country — he has found that insurance companies continued to overcharge consumers despite drastically reduced risk of accidents and loss due to the ongoing pandemic.
How much will insurance cost in 2024? ›
Nationally, the average cost of full coverage car insurance rose to $2,543 in 2024, an increase of 26 percent over last year.
Why did my car insurance go up when nothing changed? ›
Inflation and economic factors
Increased car repair expenses for parts and labor and higher replacement costs can lead to insurance rate hikes.
How to lower insurance premium? ›
Here are some ways to save on car insurance1
- Increase your deductible.
- Check for discounts you qualify for.
- Compare auto insurance quotes.
- Maintain a good driving record.
- Participate in a safe driving program.
- Take a defensive driving course.
- Explore payment options.
- Improve your credit score.
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? ›
What are the largest auto insurance companies in the US? State Farm is the biggest auto insurance company in the country by market share, while Progressive, Geico and Allstate are the next three. Most of the names of the largest companies in the country are familiar because of national advertising campaigns.
Is Allstate or Progressive more expensive? ›
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.
Why is my full coverage insurance so expensive? ›
Why Is My Car Insurance So High? Your car insurance may be expensive because of your driving history, location, vehicle or credit history. Recent insurance claims and violations can increase your rates for three to five years. On the other hand, it's possible you also just have a more expensive car insurance company.
