U.S.Aa. Vs Allstate: Unlocking The Best Auto Insurance For Your Needs

USAA and Allstate are two of the most popular insurance companies in the United States. However, USAA policies are only available to current and former military members and their families, while Allstate offers insurance to the general public. When comparing the two, USAA is better than Allstate in terms of affordability and customer service, with cheaper rates and higher customer satisfaction scores. On the other hand, Allstate offers more unique coverages and has more advertised discounts.

Customer satisfaction

USAA and Allstate are two of the largest car insurance companies in the US, with both receiving positive reviews for their customer service. However, USAA is only available to military members, veterans, and their families.

USAA has high customer satisfaction ratings and is considered one of the best car insurance companies, thanks to its multiple discounts and affordable insurance rates. It scores highly in The Zebra Customer Satisfaction Survey, receiving the top score. It also has a high J.D. Power customer satisfaction score of 892 out of 1,000, compared to Allstate's score of 829. USAA also has a lower NAIC customer complaint ratio of 1.0, compared to Allstate's ratio of 1.88, meaning customers of Allstate are nearly twice as likely to file a complaint.

USAA also has a high rating for customer loyalty, with 75% of respondents who haven't filed a claim saying they were satisfied with the ease of contacting customer service. This is compared to 68% of respondents with Allstate.

Allstate receives mixed reviews for its service and has received criticism for its claims process and response. However, it does have thousands of agents across the country, allowing for personalized service from a local agent.

Affordability

When comparing USAA and Allstate car insurance, USAA is the more affordable option. USAA's average monthly cost is $106, while Allstate's is $170.

USAA also offers cheaper premiums for drivers with bad credit. On average, USAA is the more affordable option for drivers with poor credit histories.

USAA is also the cheaper option for drivers with a clean driving record, a speeding ticket, and for teen, young adult, adult, and senior drivers.

However, it is important to note that USAA insurance is only available to current and former military members and their families, while Allstate offers insurance to the general public.

Coverage options

When it comes to coverage options, Allstate offers 10 optional coverages, while USAA only has four. Both companies offer standard coverage options such as liability, personal injury protection, comprehensive, collision, and uninsured motorist insurance.

Allstate also offers supplemental sound system insurance, which covers custom audio equipment in your vehicle if it is damaged or stolen. This is not offered by USAA.

USAA offers accident forgiveness coverage, which means your rate won't increase if you're involved in an accident. This coverage can be purchased as an add-on, and after five years of accident-free driving, it is automatically added to your policy. USAA also offers rideshare insurance, which fills the gap between personal auto insurance and the insurance coverage provided by rideshare companies.

Allstate has more unique coverage options overall, including gap insurance, new car replacement, deductible savings, and custom parts coverage. These options may be particularly useful for someone with a new, financed car or a driver with stereo equipment modifications.

Financial stability

When comparing the financial stability of USAA and Allstate, both companies are considered financially stable and able to fulfil their claim obligations. Allstate is one of the largest insurance corporations in the world and the fifth-largest publicly held property and casualty (P&C) insurer in the US as of 2019. Allstate offers insurance through a network of local agents, allowing them to offer custom products based on their agents' knowledge of the local regions they serve. The company was founded in 1931 and covers millions of homes and vehicles. Allstate's financial strength ratings are strong and stable across its class.

Allstate's financial strength ratings from A.M. Best, S&P Global Ratings, and Moody's Investors Service are A+, AA- (fourth highest of 22 classes), and Aa3 (fourth highest of 21 company ratings), respectively. These ratings indicate that Allstate is in a strong position to pay out claims and has the backing to do so in normal circumstances. Allstate's financial strength is further demonstrated by its ability to adapt to the demands of modern consumers and offer products that meet modern needs. The company has been around through many recessions and has seen a large share of claims, evolving its product offerings over time.

USAA, on the other hand, is a privately held company that serves only current and former military members and their families. While it is not as large as Allstate, USAA still has a significant presence in the insurance industry, with over 13 million members. In terms of financial stability, USAA has an A++ rating from A.M. Best, which is the highest score and indicates superior financial stability. USAA's financial strength took a hit in 2021 due to rising interest rates, natural disasters, and higher claim costs as drivers returned to the roads after pandemic lockdowns. However, the company's net income and revenue remained strong, and it reported a record revenue of $37.5 billion in 2021.

In summary, both USAA and Allstate demonstrate strong financial stability and have the ability to pay out legitimate claims. Allstate's financial strength ratings are strong and stable, and the company has a long history of adapting to changing market demands. USAA, despite a slight dip in financial strength in 2021, maintains a superior rating from A.M. Best and has shown resilience in the face of challenges. Both companies are reliable options for consumers seeking financially stable insurance providers.

Online tools

Both Allstate and USAA offer online tools to help consumers make informed insurance choices. These include mobile apps and resource libraries.

USAA's mobile app and website offer insurance and banking insights, as well as advice on military life, retirement, taxes, and natural disasters. The USAA app is easy to use and provides secure access to finances, investments, insurance, and more.

Allstate's website includes calculators to help users choose a car, meet retirement goals, and determine whether to rent or buy a home. The Allstate Mobile app offers instant agent access, digital ID cards, policy documents, and the ability to manage claims. It also features an Escape Route tool that creates a safe path to exit a fire.

While USAA has cheaper rates overall, Allstate has more coverage options and discounts. Allstate also has a better NAIC complaint index, meaning consumers are less likely to file a complaint against the company.

Frequently asked questions