Is Allstate the Right Choice for Insurance in 2026? Good or Too Expensive?
If you’re shopping for car, home, or life insurance, you’ve probably seen Allstate commercials with Dennis Haysbert and the tagline, “You’re in good hands.” But catchy ads don’t pay claims. So let’s answer the real question: Is Allstate actually a good insurance company for 2026?
Short answer: Yes—but only if you’re the right kind of customer.
Is Allstate a Good Insurance Company? Full Details
Where Allstate Really Shines?
Financial Strength You Can Trust
- Allstate has an A+ (Superior) rating from AM Best, one of the highest possible.
- They’ve paid out billions during disasters like hurricanes, wildfires, and the 2021 Texas freeze.
- Your claims are safe even in catastrophic events.
Wide Range of Products and Add-Ons
Allstate offers almost everything under one roof:
- Auto insurance (including classic cars & Mexico travel coverage)
- Homeowners & renters insurance
- Life insurance (term, whole, universal)
- Motorcycle, ATV, boat, RV
- Umbrella liability up to $10M+
- Specialty coverage: identity theft, pet insurance, business policies
Few competitors match this one-stop-shop convenience.
Local Agents Everywhere
Unlike Geico or Progressive, which rely mostly on online or call-center support, Allstate has over 12,000 local agents across the U.S. If you value face-to-face advice, this is a major benefit.
Coverage Options
Auto: Full coverage, rideshare, accident forgiveness, new car replacement, Drivewise telematics for up to 40% savings.
Home and Renters: Basic coverage plus add-ons like water backup, jewelry, or home business protection.
Life, Umbrella, Motorcycle, RV, Pet Insurance: Customizable for almost any need.
Bundling: Save up to 25% when combining auto + home.
Discounts
Drivewise safe driving discounts up to 40%.
Deductible rewards for claim-free years.
Bundling, loyalty, new car, student, and anti-theft discounts.
Does Allstate Offer GAP Insurance?
No, Allstate does not offer true GAP insurance (Guaranteed Asset Protection) as part of its auto insurance.
What GAP insurance does:
- GAP insurance covers the difference between what your car is worth (actual cash value) and what you still owe on your loan or lease if your car is totaled or stolen.
- It’s usually sold by dealerships, banks, or other insurance companies like Progressive, GEICO, State Farm, Nationwide, Travelers, or Liberty Mutual.
- Allstate does not sell this type of coverage. If you ask for GAP insurance, an Allstate agent will tell you it isn’t available.
What Allstate does offer instead:
- Allstate sometimes provides Loan/Lease Payoff coverage (also called “Total Loss Protection”) in some states.
- This coverage pays up to 25% above the car’s actual cash value if your car is totaled.
- Example: Your car’s ACV is $20,000, and you owe $24,000. Allstate could pay up to $25,000 ($20,000 + 25%), helping cover most, but not all, of the difference.
- Limitations:
- It has a 25% cap.
- It may not cover the full gap if you owe much more than your car is worth (common with long-term loans, small down payments, or rolled-over debt).
In short: Allstate gives a partial alternative, but for true GAP insurance, you’ll need to go through your dealer, lender, or another insurer.
Where Allstate Falls Short | The Not-So-Good
Premiums Are High
2025 national averages for full coverage auto insurance:
- Allstate: $2,935/year
- Geico: $2,057
- State Farm: $2,301
- Progressive: $2,410
- USAA: $1,880 (military only)
Allstate is often $600–$900 more per year than the cheapest carriers—sometimes more for younger or high-risk drivers.
Customer Service and Claims Complaints
- J.D. Power 2024–2025 Auto Claims Satisfaction: 19th out of 22 large insurers (below average)
- NAIC Complaint Index: 1.54 (higher than industry average)
- Common complaints: slow claims, denied claims, lowball settlements, poor communication
Real examples from 2025:
- “Been with them 12 years, one not-at-fault claim and they raised my rate $1,200/year.” – Reddit
- “Took 47 days to get my totaled car paid out. Had to call 11 times.” – ConsumerAffairs
Rate Increases After Claims
Allstate can apply accident surcharges, even for not-at-fault claims in some states, including Georgia.
Who Should Choose Allstate?
Ideal Customers
- People who bundle multiple policies (home, auto, life, umbrella)
- Those who value local agent support
- Drivers with clean records who qualify for Drivewise and other discounts
- Owners of high-value homes or classic cars
- Anyone who wants the peace of mind of an A+ rated insurer
Not Ideal For
- Budget-conscious drivers
- Younger drivers or those with recent tickets/accidents
- People who dislike claims headaches
- Anyone looking for the lowest possible price
Quick Comparison | Allstate vs Competitors (2025)
| Carrier | Avg Full Coverage Rate | Key Strengths | Notes |
|---|---|---|---|
| Allstate | $2,935/year | Local agents, wide coverage, strong financials | High premiums, below-average claims service |
| State Farm | $2,301/year | Strong agent network, decent pricing | Good balance of cost & service |
| Geico | $2,057/year | Low-cost, easy online tools | Mostly online support |
| Progressive | $2,410/year | Flexible coverage | Some customer complaints |
| USAA | $1,880/year | Excellent pricing & service | Military only |
Tips for Choosing Insurance in 2026
- Bundle policies to maximize discounts
- Check ZIP code rates – premiums vary by location
- Review coverage limits – higher limits can justify higher premiums
- Consider claims history – fast payouts matter
- Get multiple quotes – always compare at least 3–4 companies
Conclusion
Allstate is best for high-value customers who want bundle discounts and local agent support.
It’s not ideal for price-sensitive drivers or anyone who prioritizes fast, hassle-free claims.
Millions trust Allstate for decades—but in 2026, it’s rarely the cheapest option. Always compare quotes from multiple carriers to see what fits your needs and budget.
FAQs
Is Allstate a reliable insurance company in 2026?
Yes, Allstate is financially strong with an A+ (Superior) rating from AM Best, which means it can pay claims even during major disasters like hurricanes, wildfires, or floods. Millions of customers trust Allstate for its long history and stability.
Is Allstate expensive compared to other insurance companies?
Yes, Allstate tends to be more expensive, especially for full auto coverage. For example, the average 2026 full coverage auto premium is $2,935–$3,100/year, which is higher than competitors like Geico or State Farm. However, discounts for safe driving, bundling, and loyalty can offset some of the cost.
How good is Allstate’s customer service and claims process?
Allstate has 12,000+ local agents and a user-friendly app, making it easy to manage policies. However, claims satisfaction is below average, with common complaints about slow processing, low settlements, or denied claims. Safe drivers and those who value local agents often find it worthwhile, but budget-conscious customers may prefer competitors.
Who should consider Allstate in 2026, and who should avoid it?
Good fit: Families bundling auto + home + life, safe drivers, those who want local agent support, and owners of expensive homes or classic cars.
Not ideal: People on a tight budget, young or high-risk drivers, those who want hassle-free claims, or those just seeking the cheapest rates.
