Allstate Car Insurance Claims
In the 1930s Sears, Roebuck and Co, an American department store chain, decided to expand its operations into new markets and, on April 17 1931, added the Allstate Insurance Company to its holdings. Exactly one month later, on May 17, it sold its first policy. From then on, all Allstate’s insurance products were available through Sears’ catalogues. In 1934 Sears introduced the concept of having insurance agents selling insurance directly to its customers in-store and placed Allstate’s salesmen in many of its branches.
Allstate went public in 1991. It parted company with Sears in 1993 and, in 1995, became totally independent when The Allstate Corporation was established. It is headquartered in Illinois and has approximately 15,000 agents in both the US and Canada.
Insurance Products Offered by Allstate
In addition to being noted for its vehicle insurance, Allstate also insures boats, motorcycles, caravans and mobile homes. In addition, it offers a variety of policies for both the private and commercial and business sectors. The company also offers retirement and investment insurance and a wide range of financial and banking products through its subsidiary, Lincoln Benefit Life and Allstate Bank.
When it comes to vehicle insurance, Allstate offers benefits which may not be standard features from other insurers. Over and above the usual liability, personal injury and medical coverage, Allstate offers specific discounts relating to the type of car and its safety features. The company offers lower priced policies for teens, students and seniors based on a number of factors. Drivers with three-year and five-year accident free records are rewarded. Drivers over the age of 55 who are willing to take defensive driving classes may also benefit from lowered premiums.
In an effort to be more competitive in the vehicle insurance market, the company has launched a new subsidiary – Allstate Fire and Casualty Insurance Company (AFCIC) to replace Allstate Property & Casualty Insurance Company. This company offers a bonus of up to 5% of the premium for safe drivers who have special safety features added to their cars and do not have an accident. Discounts for anyone who pays in advance for their insurance for a period of six months are also offered. AFCIC offers a Good Student discount on premiums for teenagers who drive to school and have an average grade of at least 3.0; and a Teensmart program for those teenagers willing to participate in a defensive driving program. Senior drivers aged 55 and above and retirees are also entitled to discounts on their premiums.
History of Allstate’s Innovations in Insurance Products
During the time Allstate was allied to Sears, it began marketing insurance from an innovative perspective for the time. The first innovation, in 1939, involved how it calculated rates for motor insurance. The price of the policy was calculated using the car’s age, its mileage and how much it was used. Another innovation, introduced in 1952, came when Allstate began operating its first drive-in claims office. In the same year, the company began offering personal liability insurance and, in 1954, it started selling residential fire insurance.
During this time and up to the 1960s the company used its brand name on various products which it developed – including a car which was a failure. By the mid-70s, the company had evolved into an insurance only entity.
Today, The Allstate Corporation is the second ranked – and the largest publicly held – insurance company in the United States. It is listed on the New York Stock Exchange as ALL. According to its 2009 financial reports, Allstate’s net income for that year was $1,765 billion, with total revenue standing at $32 billion. Property liability insurance accounted for $26.2 billion. The company is listed in Forbes magazine and in Fortune 100.
