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If you’re a television watcher, you’ve likely seen those classic Allstate commercials telling you that “you’re in good hands.”
Aside from having a catchy slogan for a long time, Allstate has been bringing revolutionary changes to the insurance industry for just as long. Allstate Milewise is just one policy that reaches an audience of drivers not many other companies consider.
Did you know Allstate’s slogan is one of the oldest surviving taglines for a paid campaign? Allstate has been consistently benefiting drivers since its beginnings. We’re going to share tidbits on the pioneering milestones of America’s third-largest insurer.
#1 – Offering Insurance by Direct Mail
The first major change to the industry Allstate made occurred at the very beginning. Allstate Insurance Company, named after Sears’ tire brand, went into business in 1931. They offered auto insurance by direct mail and through the Sears catalog. They wanted to sell insurance through the mail so they could reduce costs by eliminating commissions paid to salesmen.
In 1931, most of their sales were done primarily through the Sears catalog. They were correct about cutting costs by offering insurance in the mail. They did have some losses in the first two years, but by 1933 they were earning profits. The first sale made by an Allstate agent was done at a Sears booth at the Chicago World’s Fair that same year.
#2 – Creating the Illustrator Policy
In 1947, Allstate introduced the illustrator policy. This simplified the language of policies and included pictures, which helped customers easily understand their coverage. This change created a lot of growth for the company.
Their goal was to simplify auto insurance to make it more accessible to the public. And since Allstate offers more than auto insurance, they made insurance, in general, a more accessible and easy-to-understand topic. Nowadays, this simplified way to view your insurance policies is done by simple-to-understand brochures.
In general, insurance contracts are still relatively confusing. Since an insurance policy is a legal document that must be held up in court, it will include a lot of legalese and specific terms to keep things as clear as possible. Using simple language can make things read a little ambiguous, which insurance companies want to avoid.
The best way to ensure that you understand your policy as best as possible is to speak to an experienced insurance agent. They are used to having to explain policies to their customers.
#3 – Advocating for Passenger Safety
Throughout the history of Allstate, the company often advocated safe driving. This campaign began in the 1960s when they began advocating for seat belts being mandatory. They continued this advocacy in the 1970s and 1980s, this time discussing the safety benefits of airbags.
Drunk driving was a huge problem in the 1970s, so Allstate launched many anti-drunk driving campaigns. Even though Allstate discourages drunk driving, they do provide insurance to those with a DUI on their driving record.
Their passion for encouraging safe drivers is reflected nowadays with Safe Driving programs and bonuses. Someone who is enrolled in their Safe Driving Bonus program will earn money every six months that they don’t have an accident.
They also provide an option in their mobile app called Drivewise, which can help drivers drive safely and lower their insurance costs.
#4 – Encouraging Automakers to Produce Safer Cars
Their advocacy didn’t stop at seat belts and airbags. In the 1970s, Allstate was encouraging automakers to make “tougher” cars. This included encouraging automakers to include sturdier bumpers of uniform height on vehicles.
The manufacturing of vehicles has changed significantly since the 1970s. Nowadays we know we should focus on keeping a driver safe in case of an accident, but also preventing car accidents. Hardware and software improvements in vehicles have made it so you’re less likely to crash while driving a car, but if you do crash, death will be less likely.
Creating cars that are safer to drive ultimately benefits drivers in many ways, including keeping their insurance rates down. We all know car accidents can increase your rates significantly.
#5 – Launching the Teen Safe Driving Campaign
Car crashes are the second leading cause of death for teens in the United States, so to Allstate, it was important to launch a campaign that encourages safe driving for teens.
Not only does Allstate encourage safe driving for teens, but it can also provide affordable insurance policies for them. Unmarried drivers under the age of 25 can qualify for the Smart Student Discount with three options:
- Being a full-time student with good grades
- Completing the teenSMART driver education program
- Attending school at least 100 miles away from where their car is garaged
An agent can help parents and their new driver determine what kind of policy would be best for them, even if the parent isn’t quite ready to add their teen to their policy.
#6 – Introducing Pay-Per-Mile Programs
What sets Allstate apart from other insurance companies is its pay-per-mile policies. An example of these policies would be their Milewise policy. Milewise is beneficial for anyone who doesn’t drive very far or very often. They’ll have the same coverage and claims support at a lower price, based on how much and how safely they drive.
Pay-per-mile and usage programs differ from traditional insurance because you pay a daily rate plus a per-mile rate. This rate is adjusted at renewal using the previous six months of driving information.
People like stay-at-home parents, public transport commuters, or anyone who works from home benefit from policies like this. They pay less money for their insurance than they would with a regular insurance policy, which anyone who drives infrequently may feel is unnecessary. They can still have the necessary protection without breaking the bank.
Allstate is known for offering many different discounts to its drivers, which can be really appealing to consumers. Some of their saving options include:
- Anti-theft device discount
- Bundling discount
- Discount for paying upfront
- Discount if your vehicle has anti-lock brakes
- New car discount
- Paperless discount
These are just some of the discount options Allstate provides its drivers. Allstate has been a pioneer in the auto insurance business since their start in 1931, and their accessibility makes it clear why they are one of the most popular insurance agencies.
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Luke Williams writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. His passions include best practices for insurance and helping everyday drivers get the most from their policies.