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.
