Allstate has been offering insurance products in the U.S. for the past nearly 90 years. What started as an auto insurance company has grown to one of the largest overall insurance companies and the 6th most popular nationwide. Allstate has a lot to offer in terms of renters insurance since it offers more discounts than its competitors and is near the top of the list for customer satisfaction.
Allstate Renters Insurance Overview
Allstate was founded in 1931 and has grown to become the largest publicly held personal lines insurance company in the United States. Overall, Allstate has a good reputation among consumers. According to YouGov, 47% of people have a positive opinion of the company, compared with just 13% who have a negative opinion. The company is also very strong financially, with great ratings across the board.
- Cost effective Average premiums are in line with the industry average
- Customer care Ranks third in overall customer satisfaction
- Variety of discounts Allstate offers more discounts for renters insurance than its competitors
- No flood insurance Standard coverage doesn’t include flood insurance, even though it’s the #1 natural disaster in the U.S.
- High complaints Has more complaints than average
Allstate’s average renters insurance policy costs $15 per month, which is the same as the industry average. Allstate offers a wide variety of coverage levels and add-ons, meaning your premium could cost more if you choose to increase your coverage. Other factors can also increase your premium, like living in a neighborhood with a high rate of crime or inclement weather.
Allstate offers basic renters insurance coverage, plus a few add-ons. Customers can get coverage for personal property, scheduled personal property, reimbursed living expenses, liability and guest medical coverage. Allstate customers can also choose to add identity restoration coverage to their policy for an added fee.
For renters who have valuable items, Allstate offers an umbrella policy to raise coverage limits. Those who live in flood zones can purchase flood insurance through Allstate to supplement their renters coverage. Generally speaking, Allstate’s renters insurance offerings are very similar to what its competitors provide.
When it comes to customer experience, Allstate ranks better than most insurance providers. According to J.D. Power’s 2020 Renters Insurance Study, Allstate ranked third of all companies considered. The company also rates above the industry average for property claims satisfaction. However, the company has more complaints than average with the National Association of Insurance Commissioners.
Allstate also offers great digital tools. It has an online quote generator, as well as a customer portal and mobile app, where customers can make changes to their policy, pay a bill and file a claim.
Policy discounts are one of the things that Allstate is known for. Even though their premiums are higher than competitors, customers can take advantage of discounts to lower their rates. Allstate offers discounts for bundling renters and auto policies, having home safety features installed, signing up for autopay, having a clean claims history and being 55 or older.
Compared to most competitors, Allstate offers more discounts than others. Specifically, Allstate is one of the only insurance providers that offer a discount for retired people, or those over age 55. If you’re eligible for several discounts, Allstate might be a good option for you.
For the Allstate renters insurance review, we evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
- Customer Experience– The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2019 Score (On a 1,000-point scale)||NAIC Customer Complaints|
|Allstate Renters Insurance||3.5/5||A+||841/1000||More complaints than average|
|Geico||2.75/5||A++||Not Rated||Fewer complaints than average|
|Lemonade||2.66/5||Not Rated||866/1000||More complaints than average|
|USAA||3.75/5||A++||888/1000||Fewer complaints than average|
|State Farm||3.25/5||A++||836/1000||Fewer complaints than average|
|American Family||3.75/5||A||840/1000||Fewer complaints than average|
|Nationwide||3.75/5||A+||831/1000||Fewer complaints than average|
|Farmers||3.5/5||A||839/1000||Fewer complaints than average|
*All information accurate as of October 29, 2020.
Allstate vs. State Farm
Allstate and State Farm are both solid choices for renters insurance companies. They offer the same average price — $15 per month. Both have pros and cons in terms of customer service. Allstate has more customer complaints but also ranks higher in customer satisfaction. The area where Allstate really shines is its discounts. State Farm offers fewer discounts for renters insurance, while Allstate has more than nearly all of its competitors.
Allstate vs. Lemonade
Lemonade is far newer to the market — it was only founded in 2015. But it has quickly gained popularity. In the 2020 J.D. Power renters insurance study, Lemonade ranked first in overall satisfaction. Allstate ranked third. However, both companies receive more complaints than the industry average. When it comes to price, Lemonade is very competitive. Its rates start at $5 per month but only include minimum coverage. When you increase the coverage limits, it gets closer to Allstate’s $15 per month. Because it’s newer to the market, Lemonade’s financial strength hasn’t been rated by AM Best.
The Bottom Line
If you’re in the market for renters insurance, Allstate is a solid option. They offer good coverage options, and you can easily expand coverage with an add-on umbrella policy. You can also take advantage of discounts to save a significant amount on your premium.
Allstate is a great company for first-time renters. The company’s website provides online tools and resources that can help you learn about renters insurance and decide how much coverage you need. It’s also easy to manage your policy online or through the mobile app.
The biggest drawback to Allstate is its customer service. While it ranks well in overall customer satisfaction and claims satisfaction, it has more complaints than its competitors.
Allstate Renters Insurance FAQ
Allstate’s property insurance policies also include home and condo insurance. In addition to its property insurance, the company offers auto, motorcycle, business and life insurance.
The purpose of renters insurance is to cover damage or losses you sustain in the event of a fire, break-in or other unforeseen events. To make sure you can replace all of your belongings, you should purchase at least as much renters insurance coverage as the total value of what you own. To start, you can take an inventory of your belongings so you can properly estimate your coverage needs.
Allstate renters insurance coverage is available in all 50 states.
Allstate has many different companies that underwrite its renters insurance policies, including Allstate Fire and Casualty Insurance Company, Allstate Insurance Company, Allstate Indemnity Company, Allstate Life Insurance Company and more.
Standard Allstate renters insurance policies cover personal property, reimbursed living expenses, liability coverage and guest medical coverage. Optional add-ons include scheduled personal property, identity restoration coverage, flood insurance and personal umbrella insurance.