Allstate insurance rates go up by an average of 66% after an accident. Drivers who have Allstate accident forgiveness will not see their car insurance rates go up at all after their first accident in 3 years, however. Even if the accident can’t be forgiven, it will only affect your insurance rate for 3-5 years, depending on your state.
The exact amount that premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, and the policyholder’s driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Repeat offenders also see relatively large rate hikes.
Yes, Allstate has accident forgiveness as part of its optional Gold and Platinum auto insurance packages. Gold-level Allstate accident forgiveness applies to one at-fault accident per policy every three years, while Platinum-level accident forgiveness is not limited to a certain number of accidents.
How Allstate Accident Forgiveness Works
Allstate accident forgiveness allows customers to keep all previous discounts, like a safe driver discount. Drivers also avoid any accident surcharges that would normally apply. But since Gold-level forgiveness is per-policy, members of a household who share one policy cannot have different accidents forgiven. On the other hand, Platinum forgiveness is unlimited, so multiple people on the same Platinum policy can be forgiven for separate accidents. One driver with a Platinum policy could also have several accidents herself and have them all be forgiven.… read full answer
However, having Platinum-level accident forgiveness from Allstate is not an excuse to drive recklessly. Platinum customers cannot be downgraded from a Platinum policy to a lower level, but Allstate reserves the right to not renew the policies of customers whose driving habits suggest that they are unacceptably risky to insure.
Because of the added accident forgiveness, Gold and Platinum packages are more expensive than the “Silver,” or standard, level of coverage that most customers purchase.
Another Form of Allstate Accident Forgiveness
Both the Gold and Platinum packages from Allstate also include a deductible rewards program. This perk lowers a customer’s collision deductible by $100 on the day they enroll. The collision deductible then decreases by another $100 for every 12 months without a chargeable accident (an accident that would usually lead to a rate increase).
In certain states, the deductible cannot be less than $100, and the deductible decrease is limited to $500 overall. The deductible decrease is also earned, used, and lost at the policy level, meaning that it cannot be applied to multiple accidents.
The cost of Gold and Platinum Allstate packages differs by state and individual driver. In addition, Allstate accident forgiveness is not available in California due to state laws. You can call Allstate or get a quote online to determine the exact price of Allstate accident forgiveness for your individual circumstances.
Yes, Allstate raises rates frequently. The average Allstate car insurance premium rose by 2.8% from 2018 to 2019, and Allstate rates have increased by around 25% since 2012. Individual Allstate premiums might increase upon policy renewal because of a driver’s actions, like getting into an at-fault accident or receiving a speeding violation. However, Allstate also raises rates due to factors beyond an individual driver’s control, like inflation, the company’s finances, and the country’s weather.… read full answer
Outside forces that have contributed to increasing Allstate rates include a rise in storms and flooding, changes in government regulations, and more frequent, costly claims. However, it’s important to note that every insurance company is subject to these influences to some extent. That helps to explain why the average car insurance premium, among all companies, has increased by 52.2% since 2010, even though cost of living has only increased by 17.2%.
Some rate increases seem unique to Allstate, though. Several regional newspapers have pointed out specific instances of Allstate increasing rates, such as in Los Angeles in 2022, Georgia in 2016, and Illinois in 2014 and 2019. Allstate was also accused by one journalistic non-profit of overcharging based on algorithms that determine how much people are willing to pay.
How to React If Your Allstate Rate Increases
Although Allstate rate increases might give you pause as a customer or prospective buyer, the base premium amount should only be one factor that you consider, along with coverage options, discounts and other features. For instance, Allstate offers benefits that other companies might not, including optional add-ons like new car replacement and a safe driving bonus. In some states, you can even pay a small fee in order to be covered while driving for a rideshare company like Lyft or Uber.
In addition, Allstate suggests several ways to decrease costs if your rate suddenly increases. You can adjust your coverage options, listed drivers, and deductible, for instance. You can also focus on safety, whether in your driving habits or regarding special features like anti-theft devices or anti-lock brakes. Plus, your mileage, your car make and model, and whether you park in a safe garage or on a riskier street can affect rates and might be within your control to change.
Finally, if your Allstate rates increased recently, check out WalletHub’s cheap car insurance guide to help decide if switching insurers is worth your while. It’s always worth comparing quotes to be sure you’re getting the best deal for the coverage and customer service that you want.
Allstate is so cheap because the company offers a wide variety of discounts that almost anyone can get. A minimum coverage policy from Allstate costs an average of $48 per month, and Allstate premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and anti-theft device discount. Plus, Allstate rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.… read full answer
Average Monthly Rates for Allstate vs. Top Competitors
Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.
Allstate is especially cheap for young drivers in particular. That’s because Allstate has special savings opportunities for drivers in this category, such as discounts for students with a GPA of at least 2.7.
Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though Allstate is among the cheapest car insurance companies, the only way to confirm you’ve found the lowest price is to compare quotes from multiple companies.
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