Is Allstate Insurance Good?

Key Takeaways: 10 Facts That Reveal Whether Allstate Is Actually Good 💡

Does Allstate pay claims fairly? It depends on who you ask. Allstate scored below average on J.D. Power’s 2025 U.S. Property Claims Satisfaction Study (665 out of 1,000 vs. the 682 industry average) and was hit with a $25 million class action settlement in 2024 for allegedly denying legitimate claims.

Is Allstate an A-rated company? Yes — AM Best rates Allstate A+ (Superior), S&P gives it A+, and Moody’s rates it Aa3. Financially, the company is rock-solid and fully capable of paying claims.

Does Allstate deny a lot of claims? A 2024 Weiss Ratings study found Allstate closed 50.9% of homeowners claims without payment — the highest rate among the 14 largest insurers studied. That’s more than one in every two claims denied.

Is Allstate or GEICO better? GEICO wins on price (average of ~$1,867/year vs. Allstate’s ~$2,915 for full coverage auto), earns the highest A++ from AM Best, and receives fewer NAIC complaints. Allstate wins on bundling options, local agent access, and gap insurance coverage.

Is Allstate good for car insurance? It’s comprehensive but expensive. Allstate’s average full-coverage auto premium is roughly 25% above the national average, though features like Drivewise, Deductible Rewards, and accident forgiveness add genuine value for safe drivers.

Is Allstate good for homeowners insurance? Its homeowners rates are below average (a good thing), and it ranks No. 3-4 in several industry surveys. But the high claims denial rate and below-average J.D. Power claims satisfaction score are red flags.

Is Allstate good in Canada? It’s a solid mid-tier option in the five provinces where it operates (Alberta, Ontario, Quebec, New Brunswick, Nova Scotia), with competitive bundling discounts and the Drivewise program, though availability is limited compared to national carriers.

Is Allstate a bad insurance company? Not categorically. It has excellent financial stability and strong product variety, but its claims handling, complaint ratios, and pricing consistently underperform compared to competitors like State Farm, GEICO, and Erie.

What do Google reviews and complaints say? BBB reviews trend heavily negative, centered on claims delays, lowball settlement offers, and poor communication. Its PissedConsumer rating sits at 1.7 out of 5 from over 1,500 reviews.

Is State Farm better than Allstate? For most consumers, yes. State Farm is cheaper, has a lower complaint ratio, and in 2025 announced a $5 billion cash-back dividend to policyholders — roughly $100 per insured vehicle. Allstate has not offered comparable policyholder returns.

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💰 Allstate Is Financially Bulletproof — But Financial Strength and Fair Claims Handling Are Two Different Things

This is the distinction most consumers miss. When people ask whether Allstate is “good,” they usually mean: will it take care of me when something goes wrong? Allstate’s financial ratings answer only half that question — the ability to pay, not the willingness to pay fairly.

⭐ Rating agency	Allstate score	What it means
🏛️ AM Best	A+ (Superior)	Strong ability to meet ongoing insurance obligations
📊 S&P Global	A+	Very strong financial security
💼 Moody’s	Aa3	High quality with very low credit risk
📋 NAIC complaint ratio (auto)	2.45	Receives ~2.5x more complaints than expected for its size
📋 NAIC complaint ratio (home)	Above benchmark	Above-average complaints relative to market share
🏆 J.D. Power auto claims satisfaction	824/1,000	Below industry average of 873
🏠 J.D. Power property claims satisfaction	665/1,000	Below industry average of 682

The pattern is unmistakable: Allstate passes every financial stress test with flying colors but consistently underperforms when you measure what happens after you file a claim. An A+ rating means Allstate can afford to pay your claim. It doesn’t guarantee the company will do so promptly, generously, or without a fight.

💡 Pro tip: Financial strength ratings protect you against insolvency — the risk that your insurer goes bankrupt and can’t pay anything. They do not measure claims satisfaction, fairness, or speed. Those are measured by J.D. Power, NAIC complaints data, and independent claims studies — where Allstate’s record is far less impressive.

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🚨 Allstate Denies More Homeowners Claims Than Any Other Major Insurer — and the Data Is Startling

This is the finding most Allstate reviews either bury or skip entirely. According to a Weiss Ratings analysis of 2024 data (the most recent available), Allstate closed 50.9% of homeowners insurance claims without making any payment. That’s the highest denial rate among the 14 largest insurers studied.

🏠 Insurer	Claims closed without payment (2024)	🔍 Context
🔴 Allstate Vehicle & Property Ins. Co.	50.9%	Highest among major insurers
🔴 Allstate Insurance Co.	49.5%	Second highest
🟡 USAA	49.5%	Tied for second
🟢 Nationwide	16.6%	Among the lowest
🟢 Auto-Owners	15.9%	Among the lowest
🟢 Chubb	5.8%	Lowest among majors

Now, context matters here. “Closed without payment” doesn’t automatically mean an unfair denial. Claims can be closed without payment because the damage fell below the deductible, the specific peril wasn’t covered, or the claim was filed incorrectly. But a 50.9% rate — when competitors like Chubb manage just 5.8% and Nationwide handles only 16.6% — suggests something more systemic.

Consumer advocacy attorneys and the American Association for Justice have criticized what they describe as a pattern of using claims-evaluation software to undervalue settlements, employing delay tactics to pressure claimants into accepting less, and denying claims that arguably should be covered. A $25 million class action settlement approved in 2024 centered on allegations that Allstate habitually denied legitimate claims and offered payouts far below what policyholders deserved — particularly for uninsured and underinsured motorist benefits.

Allstate posted $10.2 billion in net income for 2025 with a combined auto ratio improving to 85.0 — meaning for every dollar collected in premiums, only 85 cents went to claims and expenses. That’s extraordinarily profitable for an insurer, and it raises a fair question: is the company’s profitability partly built on aggressive claims management?

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🚗 Allstate Car Insurance: Strong on Features, Weak on Price — Here’s What Actually Matters

For auto insurance specifically, Allstate offers one of the broadest feature sets in the industry. The problem is that you’re paying a significant premium for those features compared to nearly every major competitor.

🔎 Category	Allstate	Industry context
💵 Avg. full-coverage annual premium	~$2,915	National average: ~$2,458 (25% above average)
💵 Avg. minimum-coverage annual premium	~$925	Competitive with industry
⭐ J.D. Power auto satisfaction	Below average in most regions	Tied or slightly behind Progressive
🔧 CRASH Network repair grade	Below average (improving in 2026)	Some shops find Allstate difficult to work with
📱 Digital experience satisfaction	84%	Above average, strong app
🎯 Bundling satisfaction	85% (highest among national insurers)	Clear strength for multi-policy holders
🛡️ Unique features	Drivewise, Deductible Rewards, Claim RateGuard, Milewise, accident forgiveness	More perks than most competitors

Where Allstate genuinely shines for auto insurance: if you’re a safe driver who bundles home and auto, uses Drivewise to prove your driving habits, and values having a dedicated local agent, Allstate’s ecosystem rewards you over time. Deductible Rewards reduces your deductible by $100 for every claim-free year (down to $0), and Claim RateGuard prevents your premium from spiking after your first at-fault claim.

Where Allstate struggles: if you’ve had an accident, a DUI, bad credit, or you’re simply looking for the lowest price, Allstate is almost never the answer. Its rates after violations are among the highest in the industry, and its base premiums start from an already elevated position.

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🏠 Allstate Homeowners Insurance: Cheap Rates, But the Claims Experience Can Be Brutal

Here’s the paradox: Allstate’s homeowners insurance is actually one of the more affordable options. Multiple sources rank it in the top three or four for below-average premiums. But that affordability comes with a catch — its claims handling consistently ranks among the worst of major carriers.

🏠 Homeowners metric	Allstate	Best in class
💰 Average annual premium	~$1,958 (3rd cheapest in U.S. News study)	Erie, Amica tend to be cheaper
🏆 Overall ranking	No. 3-4 depending on study	Amica, Erie, and USAA typically lead
📋 Claims closed without payment	50.9% (Weiss Ratings)	Chubb: 5.8%
⭐ J.D. Power property claims	665/1,000	Chubb: top scorer
🔄 Customer renewal intent	90% say they’ll renew	Erie: 97%
👍 Would recommend	89%	Competitive with peers
🌊 Flood insurance available?	Yes, via Beyond Floods or NFIP	Not included in standard policy

The disconnect is striking: Allstate’s homeowners rates and coverage options earn solid marks, but the moment you file a claim, the experience deteriorates. Reddit comments about Allstate home insurance are, according to NerdWallet’s analysis of those forums, “largely negative” — with recurring themes of hail damage denials, storm damage disputes, and lowball settlement offers.

💡 Pro tip: If you’re buying Allstate home insurance specifically because the price is right, build a documentation habit from day one. Photograph your home’s exterior and all major possessions annually, keep receipts for high-value items, and consider hiring a public adjuster if you ever need to file a significant claim. Public adjusters negotiate with the insurance company on your behalf and typically increase claim payouts significantly.

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🆚 Allstate vs. GEICO: The Head-to-Head Comparison That Reveals Who Really Wins

These two are among the most-searched insurance comparisons in the country, and the answer depends entirely on what you need.

🔍 Factor	🟦 Allstate	🟩 GEICO	🏆 Winner
💵 Avg. full-coverage auto cost	~$2,915/year	~$1,867/year	🟩 GEICO (saves ~$1,048/yr)
💵 Teen driver cost (male, 16)	~$910/month	~$445/month	🟩 GEICO (saves ~$465/mo)
⭐ AM Best financial strength	A+ (Superior)	A++ (Superior)	🟩 GEICO
📋 NAIC complaint index	1.45-2.45 (above average)	0.55-1.33 (below or near average)	🟩 GEICO
👤 Local agent network	~6,000 exclusive agents	Minimal — primarily direct/digital	🟦 Allstate
🏠 Home insurance bundling	Yes — strongest bundling score among nationals	No own home insurance (partners with others)	🟦 Allstate
🛡️ Gap insurance	✅ Available	❌ Not offered	🟦 Allstate
🚗 Rideshare insurance	✅ Ride for Hire	✅ Available	Tie
📱 Digital experience	Strong (84% satisfaction)	Excellent (known for app/online tools)	🟩 GEICO (slight edge)
🔧 Telematics program	Drivewise (J.D. Power: 649)	DriveEasy (J.D. Power: lower score)	🟦 Allstate

The bottom line: GEICO is cheaper for the vast majority of drivers and has stronger satisfaction metrics. Allstate is the better choice specifically for people who want a dedicated local agent, need gap insurance, want to bundle home and auto for maximum discounts, or have a teen driver (where Allstate’s rates are sometimes competitive). If price is your top priority, GEICO wins decisively.

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🔵 Is State Farm Actually Better? (Spoiler: For Most People, Yes)

State Farm is Allstate’s most direct competitor — both use captive agent models, serve similar demographics, and compete in the same markets. But the numbers consistently favor State Farm.

📊 Metric	Allstate	State Farm	Edge
💵 Avg. auto premium	~25% above national average	At or below national average	State Farm
💰 2025 net income	$10.2 billion	$12.9 billion	State Farm
🎁 2025 policyholder dividend	None announced	$5 billion cash back (~$100/vehicle)	State Farm
📋 NAIC complaint ratio	2.45 (well above average)	Near or below average	State Farm
🏠 Home insurance claims (J.D. Power)	665/1,000	Similar range	Roughly tied
👤 Agent network	~6,000 agents	~19,000 agents	State Farm
🏛️ Company structure	Publicly traded (shareholder-driven)	Mutual company (policyholder-owned)	Depends on preference
🔄 Rate reductions in 2025	Limited	Reduced rates in 40 states (~$4.6 billion in annual relief)	State Farm

The structural difference matters more than most people realize. State Farm is a mutual company, meaning policyholders are the owners. When State Farm does well, that profit flows back to you through lower rates and dividends. Allstate is publicly traded, meaning shareholders come first. When Allstate posts record profits, Wall Street benefits before policyholders do. That fundamental difference in corporate incentives helps explain why State Farm can return $5 billion to customers while Allstate channels its profits toward stock buybacks and investor returns.

That said, Allstate offers features State Farm doesn’t — like Deductible Rewards, Claim RateGuard, and the Milewise pay-per-mile option. If you’re a low-mileage, safe driver who uses every available discount, Allstate can occasionally compete on total cost. But for the average consumer, State Farm is the safer bet.

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🍁 Is Allstate Good in Canada? Competitive in Its Five Provinces, But Limited Reach Hurts

Allstate Canada is a solid mid-tier choice within the five provinces where it operates (Alberta, Ontario, Quebec, New Brunswick, and Nova Scotia). It offers competitive bundling discounts (up to $1,034 advertised savings for home + auto), access to the Drivewise telematics program in Ontario and Alberta, and a range of specialty products including pet, boat, and travel insurance through partner brands.

🍁 Canada metric	Allstate’s position
📍 Provincial availability	5 out of 13 provinces/territories
🏆 Employer recognition	Kincentric Best Employer in Canada (9 consecutive years)
🔧 Subsidiary brands	Pembridge Insurance, Pafco Insurance, Ivantage Insurance Brokers
📞 General contact	1-800-ALLSTATE (1-800-255-7828)
💻 Online portal	apps.allstate.ca/myallstate/
💰 Bundling savings	Up to $1,034 (advertised)
🚗 Drivewise availability	Ontario and Alberta (up to 30% savings)

The main limitation is reach. If you live in British Columbia (public auto insurance through ICBC), Manitoba (MPI), Saskatchewan (SGI), or any of the Atlantic provinces beyond New Brunswick and Nova Scotia, Allstate isn’t an option. Within its operating provinces, reviews are mixed but generally more positive than its U.S. reputation, partly because the Canadian insurance regulatory environment provides stronger consumer protections.

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💬 What Google Reviews, BBB Complaints, and Reddit Actually Reveal About Allstate

The gap between Allstate’s marketing and its customer reviews is one of the widest in the industry. Here’s a comprehensive breakdown across platforms:

📱 Platform	Rating	Volume	Dominant themes
😤 PissedConsumer	1.7/5	1,500+ reviews	Claims delays, billing disputes, agent misconduct
📋 BBB complaints	Thousands filed	Ongoing (not BBB-accredited)	Lowball offers, denial reversals, poor communication
💬 Reddit	Largely negative (per NerdWallet)	Hundreds of threads	Rate hikes, aftermarket parts, agent upselling
⭐ WalletHub	2.6/5 (user) / 2.8/5 (editorial)	2,400+ ratings	Mixed — service praised, pricing and claims criticized
📊 J.D. Power auto claims	824/1,000	Industry study	Below average (industry avg: 873)
📊 J.D. Power property claims	665/1,000	Industry study	Below average (industry avg: 682)
🔧 CRASH Network (repair shops)	Below average (improving)	Industry survey	Shops report difficulty; pressure to use cheaper parts
✅ Insuranceopedia	4/5	Editorial review	Balanced — praises financial strength, notes claims concerns

What satisfied customers consistently praise: the Drivewise app and its tangible savings, Deductible Rewards as a genuine loyalty perk, local agents who provide personal attention and responsive service, and the convenience of the mobile app for policy management.

What dissatisfied customers consistently condemn: aggressive and unexplained rate increases at renewal, claims adjusters who lowball estimates and push aftermarket parts instead of original manufacturer parts, hail and storm damage claims that are denied or delayed, the impossibility of reaching a decision-maker during disputes, and retention agents who prioritize upselling over problem resolution.

The pattern across thousands of reviews is remarkably consistent: Allstate performs well during the quiet periods when you’re simply paying premiums and not needing anything. The problems emerge when you actually file a claim — which is, of course, the entire reason you have insurance in the first place.

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🎯 The Verdict: Who Should (and Shouldn’t) Choose Allstate

✅ Allstate may be right for you if…	❌ Allstate probably isn’t right if…
You want a dedicated local agent relationship	Your primary concern is finding the lowest price
You bundle home + auto (strongest bundling scores)	You have a DUI, accident, or poor credit (rates spike hard)
You’re a safe driver who benefits from Drivewise	You want hassle-free claims processing
You value features like Deductible Rewards & Claim RateGuard	You prefer digital-first, agent-free insurance management
You want gap insurance or Milewise pay-per-mile	You live in a state where Allstate’s rates are especially high
You’re willing to pay more for comprehensive coverage options	You’ve had poor experiences with claims disputes before

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❓ Frequently Asked Questions

Does Allstate pay claims fairly? The data is mixed. Allstate’s financial ratings confirm it can afford to pay, but its J.D. Power claims satisfaction scores consistently land below the industry average. A Weiss Ratings study found Allstate closed 50.9% of homeowners claims without payment in 2024 — the highest rate among major insurers. Consumer advocates and attorneys have documented patterns of lowball offers, delay tactics, and the use of claims-evaluation software that systematically undervalues settlements. However, many policyholders report positive individual experiences, particularly with routine claims that don’t require extensive negotiation.

Is Allstate good for car insurance? It’s good for certain drivers — specifically safe drivers who bundle policies, use Drivewise, and value features like Deductible Rewards and accident forgiveness. But for the average driver, Allstate’s auto premiums run roughly 25% above the national average. Competitors like GEICO, Progressive, and State Farm are cheaper for most profiles while offering comparable or better satisfaction scores.

Is Allstate good for homeowners insurance? Allstate’s home insurance rates are below average (meaning cheaper), and its coverage options are broad, including unique add-ons like green improvement coverage and electronic data recovery. However, the 50.9% claims denial rate and below-average J.D. Power claims scores are serious concerns. If you choose Allstate for home insurance, document everything meticulously and understand your policy’s exclusions before you ever need to file.

Is Allstate or GEICO better? For most drivers, GEICO is the better value. It’s roughly $1,000 per year cheaper on average for full-coverage auto, earns the highest possible AM Best rating (A++), and receives fewer NAIC complaints. Allstate is better for people who want a local agent, need gap insurance, or want to bundle home and auto under one carrier (GEICO doesn’t sell its own homeowners policies).

Is Allstate a bad insurance company? It’s not a bad company — it’s a contradictory one. Financially, it’s among the strongest insurers in the world. Its product variety is among the broadest. Its app and digital tools are well-designed. But its claims handling is its Achilles’ heel. The disconnect between “we can pay your claims” and “we consistently underperform at paying claims fairly and promptly” is what generates the polarized reviews. Whether Allstate is “bad” depends on whether you ever need to file a claim — and statistically, many policyholders will.

Is State Farm a good insurance company? State Farm is generally considered one of the better major insurers. It’s the largest property-casualty insurer in the U.S., offers rates at or below the national average, employs nearly 19,000 agents (triple Allstate’s count), and returned $5 billion to policyholders in 2025 through a cash-back dividend. Its mutual company structure means profits benefit policyholders, not shareholders. It’s not perfect — State Farm’s own claims scores are sometimes middling — but it consistently outperforms Allstate on price, complaint volume, and policyholder returns.

What should I do if Allstate denies my claim? Request a detailed written explanation of the denial, then review your policy to verify whether the coverage actually excludes the loss. Gather additional documentation — photos, receipts, contractor estimates, police reports — and submit a formal appeal directly to Allstate. If the appeal fails, file a complaint with your state’s Department of Insurance (every state has a consumer complaint portal). Insurers are legally required to respond within 15-30 days. As a last resort, consult an attorney experienced in insurance disputes or hire a public adjuster who works on your behalf for a percentage of the final payout.

How do I know if I’m overpaying for Allstate? Compare at least three quotes from competitors every 12 months. Insurance is one of the few financial products where loyalty is rarely rewarded — in fact, long-term policyholders often pay more due to incremental rate increases that new customers don’t face. If your Allstate renewal premium jumped without a new claim or violation, you’re almost certainly overpaying compared to what another carrier would charge for the same coverage.

Does Allstate use aftermarket parts for repairs? Yes, and this is one of the most common complaints in online reviews and CRASH Network surveys. Allstate’s repair guidelines sometimes specify aftermarket or salvaged parts rather than original equipment manufacturer parts, which can affect repair quality and vehicle value. If your policy or state law entitles you to OEM parts, insist on them in writing before approving any repair.