Allstate, formed in 1931, is America’s biggest publicly traded private lines insurer. General Robert E. Wood, a previous Sears, Roebuck & Co-President and Board Chairman, created it.
In a small office in the Commercial Block Building in Mount Pleasant, Michigan, Vern V. Moulton and four of his friends established Auto-Owners Insurance Company.
Key Takeaways
- Allstate is one of the largest insurance companies in the United States, offering a wide range of insurance products. At the same time, Auto-Owners is a smaller, regional company providing insurance mainly in the Midwest.
- Allstate is known for its comprehensive coverage options, numerous discounts, and nationwide availability, while Auto-Owners is known for its exceptional customer service and personalized coverage.
- Allstate offers an extensive network of agents and a variety of digital tools, whereas Auto-Owners focuses on building relationships with independent agents and prioritizes personal customer service.
Allstate vs Auto-Owners
Allstate is a large publicly traded company that offers auto, home, life, and business insurance and other financial products such as investment and retirement plans. Auto-Owners is a smaller, privately held insurance company that focuses on providing personalized service to its customers.
General Robert E. Wood, who first sold insurance via mail, transformed his ideas into an innovative commercial move. The name Allstate was inspired by a tire offered in a Sears catalogue, and the initial sales site was in a Sears shop in Chicago.
The first claim was made to a guy who arrived at the office clutching a car door handle in his hand following an attempted automobile theft.
Auto-Owners Insurance had only one portfolio of policyholders and $174.25 in total assets in its first year. Auto-Owners expanded beyond Michigan in 1935 and began issuing policies in Indiana.
In 1951, the firm relocated into its new four-story downtown Lansing headquarters with 400 employees. Auto-Owners Insurance was ranked 375 in 2018.
Comparison Table
| Parameters of Comparison | Allstate | Auto-Owners |
|---|---|---|
| Origin | Allstate was founded in the year of 1931. | Auto-Owners was founded in the year of 1916. |
| Market Share | Allstate has a market share of 4.9%. | Auto-Owners has a market share of 0.24% |
| Rating | Allstate received a rating of A- from BBB. | Auto-Owners received a rating of A+ from BBB. |
| Payment Options | Allstate accepts all kinds of payments starting from online transactions to cheques. | Auto-Owners accepts only one kind of payment and that is automatic online payment. |
| Complaint Rates | Allstate has an NAIC Complaint Index of 1.03. | Auto-Owners has an NAIC Complaint Index of 0.77. |
What is Allstate?
Allstate, established in 1931, is the nation’s biggest publicly traded personal lines insurer. General Robert E. Wood, a former Sears, Roebuck & Co-President and Board Chairman, formed it and first sold insurance over the mail, an innovative commercial strategy.
The name Allstate was inspired by a tire offered in a Sears catalogue, and the initial sales site was in a Sears shop in Chicago.
The first claim was made to a guy who arrived at the office clutching a car door handle in his hand following an attempted automobile theft. In the 1950s, the firm grew beyond vehicle insurance to provide life, health, and commercial insurance as well. In addition, the corporation began training high school students about driving and marketing on television.
The organization caters to the special demands of a broad customer and has earned honours for promoting multiculturalism in the workforce and providing possibilities for promotion to women in particular.
Allstate was designated one of the top 50 creative adopters of computer technology by InformationWeek in 2005.
In 2005, Fortune magazine named Allstate the second most regarded firm in the Property and Casualty industry. In the 1960s, Allstate became a champion for mandating seat belt use, and in the late 1960s, it began marketing commercial coverage.
What is Auto-Owners?
Auto-Owners Insurance Company covers a far broader range of clients than only car owners. Through independent agents in 26 states, the firm provides over a dozen different forms of insurance.
People requiring several insurance policies may benefit from the ease and advantages of combining them with Auto-Owners, which offer a wide range of coverage alternatives.
Auto-Owners provide all of the standard coverages, like liability, various state-required coverage kinds, breakdown cover, and extensive and catastrophe insurance.
In addition, the organization provides a variety of add-on coverages and alternatives if you have house insurance with Vehicle-Owners in addition to a comprehensive auto policy.
If you have to file a claim under both policies for the same occurrence, such as a severe storm or a tree falling on both your house and car, the insurer will decrease your auto cost by the value of your home risk.
If your home’s deductible is larger than your vehicle deductible, the firm will waive your car deductible.
The Auto-Owners collision coverage benefit is divided into two components. To begin, if you are in an accident with another firm customer, your accident deductibles will be eliminated.
Second, if you are in an accident with an animal, Auto-Owners will pay from either your accident or full insurance, whichever is greater. Animal crashes are rigorously covered under comprehensive coverage by the majority of insurers.
Main Differences Between Allstate and Auto-Owners
- Allstate was put in place in 1931 by General Robert E. Wood, whereas Auto-Owners was set up in 1916 by Michigan, Vern V. Moulton, and four of his friends.
- Allstate has a 4.9 percent industry share, while Auto-Owners has a 0.24 percent industry share.
- Allstate obtained an A- rating from BBB, while Auto-Owners achieved an A+ rating.
- Allstate allows various types of payment transactions, from online purchases to checks, whereas Auto-Owners only take one type of billing: automatic online payment.
- The NAIC Complaint Index for Allstate is 1.03, while the NAIC Complaint Index for Auto-Owners is 0.77.
- https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/byulr1998§ion=53
- https://hcommons.org/deposits/download/hc:38010/CONTENT/king98fulltext.pdf/
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
A very thorough article, well written and very informative.
I’m impressed by the history and innovative thinking behind Allstate, especially their emphasis on technology
Allstate seems to offer a wider range of payment options.
Seems like Allstate was ahead of its time in many ways
Both Allstate and Auto-Owners appeared to have made significant strides in how they conduct their business and the services they offer to their customers.
That’s very interesting, I didn’t know about that!
Glad to learn that Auto-Owners reduces accident deductibles if the other driver is insured by them.
Auto-Owners is certainly more niche than Allstate.
Yes, they really were pioneers in the insurance industry.
Yes, I agree. The contrast between the two companies is very clear.