What Allstate Insurance Is and Who Sells It
Allstate is a publicly traded insurance company that sells auto, home, life, and umbrella policies through agents and online. It is one of the largest property and casualty insurers in the United States, meaning it handles claims for damage to your car, house, or belongings — not health insurance. You buy a policy directly from Allstate or through an independent agent who represents multiple insurers, and you pay a monthly or annual premium in exchange for coverage if something covered happens.
Allstate operates in all 50 states and the District of Columbia, though the specific coverage options, rates, and discounts available to you depend on where you live and what you are insuring. The company also owns or operates brands like Esurance, Encompass, and National General, which serve different market segments but operate under the same parent company.
Unlike government programs or subsidized insurance, Allstate is a for-profit business. You are not buying into a pool funded by taxes or employer contributions — you are purchasing a contract with a private company. Understanding how that contract works, what it covers, and what it costs is the foundation for deciding whether Allstate is the right choice for your situation.
Key Takeaways
- Allstate sells auto, home, life, and umbrella insurance through agents and online, and rates and coverage options vary by state and your personal risk profile.
- Auto and home policies require you to choose a deductible — the amount you pay out of pocket before insurance covers the rest — and higher deductibles lower your premium.
- Discounts for bundling policies, safe driving, home safety features, and paying in full can reduce your premium by 10 to 30 percent depending on what you may have access to for.
- Allstate uses credit scores, driving history, claims history, and other underwriting factors to set rates, so two people in the same zip code can pay very different premiums.
- You can get a quote online or by phone without committing to anything, and comparing quotes from multiple insurers is the most direct way to understand whether Allstate's price fits your budget.
How Auto Insurance Premiums and Deductibles Work at Allstate
When you buy an auto policy from Allstate, you choose a deductible — typically $250, $500, $1,000, or higher — for collision and comprehensive coverage. The deductible is what you pay if you file a claim; Allstate pays the rest up to the policy limit. A higher deductible means a lower monthly premium, but it also means you pay more out of pocket if you have an accident or your car is damaged by theft, weather, or vandalism.
Allstate calculates your premium based on several factors: your age, driving history, the type of vehicle you drive, how much you drive, where you park it, and your credit score (in most states). A single accident or traffic violation can raise your rate significantly, sometimes for three to five years. Conversely, a clean driving record for several years may lower your rate through Allstate's safe driver discount or its Drivewise program, which tracks your actual driving habits through a mobile app and can reduce your premium if you drive safely.
You must also choose liability limits — the maximum Allstate will pay if you are at fault in an accident and injure someone or damage their property. State minimum liability requirements vary, but most states require at least $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage. Choosing limits higher than the state minimum protects your personal assets if you cause a serious accident, and many financial advisors recommend $100,000 or more per person.
Home Insurance Coverage and How Allstate Structures It
Allstate home insurance covers the structure of your house, your personal belongings inside it, liability if someone is injured on your property, and additional living expenses if your home becomes uninhabitable due to a covered loss. Like auto insurance, you choose a deductible — often $500, $1,000, or $2,500 — and Allstate pays the rest of the covered loss up to your policy limit.
The coverage amount for your home's structure is usually based on the replacement cost — what it would cost to rebuild your house from the ground up with similar materials and quality, not the market value of the land and house combined. Allstate may require an inspection or use publicly available data to estimate this cost. If you underinsure your home, Allstate may explore a penalty called coinsurance, which means you pay a larger share of any loss.
Personal property coverage typically covers your belongings at 50 to 70 percent of your home coverage limit, though you can buy additional coverage for high-value items like jewelry, art, or electronics. Allstate also offers optional riders — add-ons to your base policy — for things like water backup, identity theft, and home business coverage. Discounts for bundling home and auto, installing security systems, and maintaining a claims-free history can reduce your home premium by 10 to 25 percent.
Discounts and Factors That Lower Your Allstate Rate
Allstate advertises several common discounts. Bundling auto and home policies typically saves 15 to 25 percent on your combined premium. Safe driver discounts explore if you have no accidents or violations in a set period, usually three to five years. Paying your premium in full rather than monthly can save you a small amount. Installing a home security system, smoke detectors, or deadbolts may lower your home premium. Some states allow discounts for completing a defensive driving course.
Allstate's Drivewise program for auto insurance uses a mobile app to monitor your driving habits — acceleration, braking, time of day, and miles driven — and can reduce your premium by up to 30 percent if you drive safely. You control what data is collected and can opt out at any time. The program is optional, and not all states offer it.
Discounts vary by state and by the specific coverage you buy. Allstate does not always explore every discount automatically, so asking your agent or checking your online account about available discounts is worth doing. The company also periodically runs promotional discounts for new customers or specific groups like military members or alumni of certain universities.
What Allstate Does Not Cover and Common Exclusions
Standard homeowners insurance does not cover flood damage, earthquake damage, or wear and tear. If you live in a flood zone, you must buy a separate flood insurance policy, usually through the National Flood Insurance Program (NFIP) run by the federal government, though some private insurers including Allstate now offer flood coverage in certain states. Earthquake coverage is a separate rider you can add in states where it is available.
Auto insurance does not cover routine maintenance, mechanical breakdown, or damage caused by you intentionally. If you lend your car to someone and they cause an accident, your policy typically covers it, but if you allow someone with a suspended license to drive, Allstate may deny the claim. Damage from racing or using your car for commercial purposes (like rideshare or delivery) is usually excluded unless you buy a commercial auto policy.
Both auto and home policies exclude damage caused by war, civil unrest, or nuclear hazard. Intentional damage — setting a fire yourself or vandalizing your own car — is not covered. If you fail to maintain your home or car, Allstate may argue that a loss was preventable and deny or reduce the claim.
How to Get a Quote and Compare Allstate to Other Insurers
You can get an Allstate quote online at allstate.com, by calling 1-800-ALLSTATE, or by meeting with a local agent. Online quotes typically take 5 to 10 minutes for auto insurance and require your driver's license number, vehicle identification number (VIN), and driving history. For home insurance, you will need your address and information about your house's age, square footage, and construction type.
Allstate does not require you to commit to a quote; you can compare it to quotes from other major insurers like State Farm, GEICO, Progressive, and Nationwide. Getting quotes from at least three insurers gives you a realistic picture of the market rate for your situation. Rates change frequently, so comparing quotes every year or two, especially after a major life change like moving or getting married, can reveal significant savings.
When comparing quotes, make sure you are comparing the same coverage limits and deductibles across all insurers. A quote that looks cheap because it has a $2,500 deductible is not comparable to one with a $500 deductible. Also check what discounts each insurer offers and whether you may have access to for them, because discounts can swing the final price by hundreds of dollars per year.
Filing a Claim and What to Expect
If you have an accident, theft, or damage to your car or home, you can file a claim with Allstate by phone, through the mobile app, or online at allstate.com. For auto claims, you will need details about the accident — date, time, location, other parties involved, and a description of what happened. For home claims, you will need photos of the damage and a list of what was damaged or destroyed.
Allstate will assign a claims adjuster to your case. The adjuster inspects the damage, reviews your policy, and determines what is covered and what the company will pay. This process typically takes a few days to a few weeks depending on the complexity of the claim. If you disagree with the adjuster's assessment, you can request a second opinion or hire an independent appraiser, though you may have to pay for that appraisal upfront.
Once Allstate approves your claim, it will pay you or the repair shop directly, depending on your policy and the type of claim. For auto claims, you can choose your own repair shop or use one of Allstate's preferred shops. For home claims, Allstate may require you to get multiple repair estimates or use a contractor from its network, though you typically have the right to choose your own contractor.
Life Insurance and Umbrella Coverage Through Allstate
Allstate also sells term life insurance, whole life insurance, and universal life insurance. Term life is the simplest and cheapest option — you pay a monthly premium for a set period (10, 20, or 30 years), and if you die during that term, Allstate pays your beneficiary a lump sum. Whole life and universal life are permanent policies that build cash value over time, but they cost significantly more and are more complex.
An umbrella policy is additional liability coverage that sits on top of your auto and home policies. If you cause an accident and the damages exceed your auto policy limit, or if someone is injured on your property and the damages exceed your home policy limit, your umbrella policy covers the excess up to its limit — typically $1 million or more. Umbrella policies are relatively inexpensive, often $150 to $300 per year for $1 million in coverage, and are worth considering if you have significant assets to protect.
Life and umbrella policies are optional add-ons. Many people buy them to protect their family or assets, but they are not required by law the way auto insurance is in most states. Allstate can quote these products alongside your auto and home policies, and bundling them may may have access to you for additional discounts.
Frequently Asked Questions
Can I cancel my Allstate policy anytime?
Yes, you can cancel at any time by calling your agent, calling 1-800-ALLSTATE, or using the online account portal. Allstate does not charge a cancellation fee, but if you have paid for coverage in advance, you may receive a refund for the unused portion. Some states require a short notice period, usually 10 to 30 days.
Does Allstate raise rates after one accident?
Yes, Allstate typically raises rates after an at-fault accident, sometimes by 10 to 40 percent depending on the severity and your state. The increase usually lasts three to five years. If you were not at fault, your rate may not increase, though this varies by state and policy. Asking your agent about the specific impact before filing a claim can help you decide whether to file or pay out of pocket.
What is the difference between Allstate and Esurance?
Esurance is owned by Allstate but operates as a separate brand focused on online sales and lower-cost policies. Esurance typically has fewer local agents and less personalized service, but premiums are often lower. Both are backed by the same financial stability, and coverage options are similar. Esurance may be a good choice if you prefer online-only service and want a lower price.
Do I need to buy insurance from Allstate or can I shop around?
You can shop around and buy from any licensed insurer in your state. Allstate is one option among many, and rates vary significantly between companies for the same person and coverage. Comparing quotes from at least three insurers takes 20 to 30 minutes and can save you hundreds of dollars per year, so shopping around is almost always worth doing.
What happens if I miss a premium payment?
Allstate typically gives you a grace period of 10 to 30 days after your payment due date before canceling your policy, depending on your state. If your policy lapses, you lose coverage when ready, and driving without auto insurance is illegal in most states. If you know you will miss a payment, contact Allstate to discuss payment options or a temporary suspension rather than letting the policy lapse.