Allstate auto insurance

Overview

Allstate is the fourth-largest auto insurer in the United States. It ranked #4 among U.S. private passenger auto insurers by 2025 direct premiums written, with $37.67 billion and a 10.14% market share, according to NAIC market share data. The Allstate Corporation (NYSE: ALL) is based at 3100 Sanders Road in Northbrook, Illinois, has about 53,000 employees and describes itself as the third-largest personal property and casualty insurer in the country. Tom Wilson is chair, president and CEO.

Allstate sells through three channels: more than 27,400 Allstate exclusive agents and licensed sales professionals; a direct channel of about 2,200 contact-center representatives plus online sales; and, for its National General brand, about 58,700 independent agent locations. Its auto and home insurance operations cover all 50 states and Washington, D.C., and Canada; Texas, California, Florida and New York are its largest states. Allstate notes that prices can differ depending on whether you buy online, through a call center or from an agent.

History

Sears, Roebuck and Co. launched Allstate Insurance Company on April 17, 1931, as the Great Depression intensified, selling auto insurance by mail through the Sears catalog. The first policy covered a 1930 Studebaker for $41.60 a year. Agents began selling from a Sears booth at Chicago's 1933 World's Fair and then from Sears stores. Allstate was the first insurer to price auto policies by age, mileage and use of the car (1939), introduced a good-driver discount plan in 1960 and moved to its Northbrook campus in 1967. The "You're in good hands" slogan dates from the 1950s.

Sears sold 19.8% of Allstate in 1993 — then the largest IPO in U.S. history — and spun off the rest in 1995. Allstate began selling auto insurance online and by phone in 2000, starting in Oregon, and launched the Drivewise telematics device in 2010 and Drivewise Mobile, the first mobile telematics app in the industry, in 2014. During the pandemic its Shelter-in-Place Payback returned almost $1 billion to auto customers.

On January 4, 2021, Allstate closed its $4 billion purchase of National General Holdings, which brought an independent-agent business and the Direct Auto brand, sold through contact centers and about 500 retail stores. Allstate also owns Arity, a driving-data and telematics company, Allstate Protection Plans, Allstate Roadside and Allstate Identity Protection, and its New Jersey group still includes companies carrying the older Encompass and Esurance names. In 2025 it sold its employer voluntary benefits and group health businesses.

Auto insurance coverage

Allstate's auto policy includes liability, collision, comprehensive, medical payments, personal injury protection where required, uninsured/underinsured motorist coverage and rental reimbursement. Notable options include:

• Accident Forgiveness, an optional feature under which your rate won't go up after an accident, even one you caused (not offered in every state).
• Auto Replacement Protection, which replaces a qualifying car totaled in an accident with a newer or higher-valued vehicle; offered in 48 states and D.C.
• Ride for hire coverage for rideshare drivers, plus electric-vehicle, classic car and Mexico tourist policies.
• Roadside assistance, either as policy coverage or through Allstate's pay-per-use and Motor Club plans.

In 47 states and D.C., customers who bundle a qualifying property policy get an auto renewal guarantee and a deductible waiver when one event damages both car and home.

Allstate is also rolling out a new "Affordable, Simple, Connected" auto product, available in 43 states at the end of 2025, with completion targeted for 2026.

Discounts and programs

Drivewise is Allstate's usage-based program, offered through agents and the direct channel in 48 states and D.C. It runs in the Allstate mobile app, gives a discount for enrolling and staying active, and sets a personalized rate at each renewal from your past 12 months of driving (six for the first renewal). Speeding, sudden braking, phone use and late-night driving count against you, and Allstate says that in some states your rate could increase with high-risk driving.

Milewise is true pay-per-mile insurance: a plug-in device records your miles and you pay a low daily rate plus a per-mile charge, or you can choose an "unlimited" option that charges only the daily rate. It was available in 21 states and D.C. at the end of 2025. National General customers use a separate app, DynamicDrive, offered in 44 states.

Other discounts on Allstate's site include multi-policy bundling, anti-lock brakes, anti-theft devices, a responsible payer discount, good student (a B-minus average or better), student away at school (more than 100 miles from home) and paying in full.

Claims

File and track claims in My Account online or in the Allstate app; non-customers can call 800-255-7828. You can upload photos, and some claims qualify for a virtual inspection from photos. Repairs at shops in the Good Hands Repair Network, Allstate's direct repair program, carry a lifetime guarantee, or you can choose your own shop. For roadside help, call 800-347-8880. The app's crash detection can offer to call 911, send roadside help or start a claim after a detected collision above 25 mph.

Ratings and reputation

Financial strength. AM Best affirmed the A+ (Superior) financial strength rating and "aa-" long-term issuer credit rating of the Allstate Insurance Group on September 2, 2026, citing materially improved margins through 2025 and the first half of 2026 and 26% statutory surplus growth in 2025. The same action affirmed an A (Excellent) rating for National General Insurance Ltd. (Bermuda); AM Best rates National General's U.S. underwriting companies separately (see National General).

Results. After a recovery driven by rate increases and underwriting changes, Allstate earned $10.2 billion in 2025 on $67.7 billion of revenue, despite $4.96 billion of catastrophe losses for the year. It said it cut premiums for 7.8 million auto and homeowners customers by an average of 17% in 2025 through coverage reviews.

Legal. On January 13, 2025, the Texas Attorney General sued Allstate and Arity, alleging they collected location and driving data from more than 45 million Americans through software embedded in third-party phone apps without proper notice or consent, in violation of Texas privacy, data broker and insurance laws. Allstate's 2025 annual report says it is defending that suit and related class actions; see driving data privacy lawsuits.

Customer satisfaction. In the J.D. Power 2026 U.S. Auto Insurance Study, Allstate ranked third in California (657) and New England (660) and was above the regional average in four of 11 regions, at the average in the Southeast and below it in six, including New York (612 vs. 636). National General finished last in three of the four regions where it was ranked. In the J.D. Power 2025 U.S. Auto Claims Satisfaction Study, Allstate scored 693 (15th of 20, below the 700 average) and National General 605 (20th).

Who it suits

Allstate suits drivers who want a local agent but also the option to buy online, who value extras such as accident forgiveness and new-car-style replacement, or who drive little and would benefit from Milewise. Its financial position has recovered strongly, but its satisfaction scores are mixed and its driving-data practices are under legal challenge.

• Strengths: Sold in every state through agents, online and by phone; Milewise pay-per-mile in 21 states and D.C.; Auto Replacement Protection and Accident Forgiveness options; A+ rating affirmed September 2026 and 2025 price cuts for 7.8 million customers.
• Weaknesses: Below the regional average in six of 11 J.D. Power regions in 2026; National General brand at or near the bottom of J.D. Power's rankings; Drivewise can raise rates in some states; Texas lawsuit over the collection of driving data.

How to contact Allstate