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
Increasing Car Repair Costs
Expensive cars like luxury vehicles and high-end sports cars — those with higher repair costs to begin with — were always pricier to insure. But now that repair costs have increased across the board, insurance companies have begun to quickly hike rates to keep up.
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 does Allstate keep raising rates? ›
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.”
Why is Allstate insurance so expensive? ›
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.
Will insurance rates go down in 2024? ›
2024 Auto Insurance Increases Will Hit You Hard! Full coverage costs $212 a month on average, while liability-only coverage costs $103 a month. That prices out to $2541 and $1238 a year, respectively. In 2023, the average price of full-coverage car insurance across the country went up by 24%.
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.
Is Allstate the most expensive car insurance? ›
Allstate's overall insurance pricing is 22.72% more expensive than the national average and major competitors. The company ranks in the middle of the pack for cost at a position of 64th out of the 130 providers we reviewed. So, if you are looking for cheap car insurance coverage, you'll most likely find it elsewhere.
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.
Did Allstate rates go up? ›
During Allstate's earnings call, chief executive Tom Wilson said: “Since 2022, the Allstate brand implemented rate increases of 33.3%, which included 16.4% in 2023 and 6.9% in the fourth quarter, driven by the recent approvals in California, New York, and New Jersey.
How to negotiate with Allstate? ›
Tips for Negotiating a Settlement with Allstate
- Document everything. ...
- Gather evidence. ...
- Do not give the insurance company a recorded statement. ...
- Do not admit fault. ...
- Do not take the first offer from Allstate. ...
- Do not let your emotions get the better of you. ...
- Work with a lawyer.
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.
Intense Industry Competition: The insurance market is fiercely competitive, with numerous players vying for market share. Allstate's ability to differentiate itself through product offerings, brand recognition, and customer experience is crucial for maintaining its competitive edge.
Who is cheaper than Allstate? ›
Geico and USAA are among the insurance companies that are cheaper than Allstate.
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.
Who is more expensive State Farm or Allstate? ›
While Both Top-Rated Companies Can Be Good Choices for Coverage, State Farm Typically Offers Lower Rates Than Allstate. Discover if you are overpaying for car insurance below.
Why did my car insurance go up when nothing changed? ›
The collective risk factor
You are particularly affected by where you live and the people directly around you. If you live in an area where there is a lot of car theft or a higher number of accidents, your insurance company may assume there is a higher risk that you will also have similar claims.
Why is my car insurance suddenly so high? ›
Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
Why do my car insurance rates keep going up? ›
Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.
Is it normal for insurance to go up every year? ›
Annual increases are typical across the industry, but the way your risk factors are viewed by a particular company may vary. Get to understand your coverage and discounts to ensure you are getting the best price for the assurance you need.
