Why Is Allstate So Expensive? Top Reasons for 2024 (2024)

FAQs

Why did my auto insurance go up in 2024? ›

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.

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.

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.

Allstate's average auto insurance rates are significantly higher than State Farm's. The average annual cost of a full-coverage policy from Allstate is $2,598. For State Farm, the average annual cost is $1,697.

Nationally, the average cost of full coverage car insurance increased by 26 percent in 2024, but some states saw larger rate hikes. Missouri saw a massive 44 percent increase in the average annual cost of full coverage car insurance, from $1,943 in 2023 to $2,801 in 2024 — the biggest increase in any state.

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.

How can I negotiate settlement amounts with Allstate? The best way to negotiate your Allstate settlement is to hire a personal injury attorney who understands how insurance operate. Make sure you're prepared, documenting every penny, filing as quickly as possible, and calculating the real value of your claim.

State Farm is the largest auto insurance company in the U.S., with 17% of the market. Other big car insurance companies include Progressive, Geico and Allstate.

Key Points: Geico's full coverage costs an average of $1,572 per year, which is around 38 percent cheaper than Allstate's full coverage rate of $2,520 per year. Allstate offers more flexible roadside assistance packages than Geico, but both companies charge a fee for the service, either monthly, annually, or per-use.

Between Allstate and Geico, both companies offer good coverage options and decent service. However, Geico is cheaper according to our estimates, so it comes out on top in our comparison.

Who's better, Progressive or Allstate? ›

According to the J.D. Power 2022 U.S. Auto Claims Satisfaction Study, both companies scored around the industry average of 873 out of 1,000 points. Allstate scored 870 and Progressive scored 889.

Allstate and State Farm have similar customer satisfaction ratings, but Allstate coverage costs almost twice as much as State Farm's on average. Allstate offers tourist car insurance for travelers in Mexico, a type of coverage not offered by State Farm.

What makes Allstate unique is how we take our longtime motto In Good Hands to heart. Our Values define who we are, and Our Behaviors embody how we work. We call this foundation Our Shared Purpose. Our Code illustrates what it means to live into Our Shared Purpose with every decision we make.

While it can seem arbitrary, there are actual reasons you can see your price go up and down. Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.

Rate level increases often come about because of trends in the industry towards more expensive vehicle repair and medical costs. Repairs and medical costs are almost always on the rise, so overall rate decreases are a very rare occurrence.

Factors such as longer repair times and more expensive rental car costs are resulting in rising prices, according to a report by the American Property Casualty Insurance Association. Also, cars are becoming costlier to fix.

Car insurance typically drops as you grow older, when you drive safely for three to five years following an accident or citation, and when you switch to a cheaper company. Both men and women see the steepest drop in car insurance costs between ages 18 and 19.