Allied Car Insurance Review: Great Prices but Average Customer Service

Allied Car Insurance Review: Great Prices but Average Customer Service

Positive rates and appealing discounts make this insurer worth a look, though customer service is not perfect.

Good for

  • Accident-free drivers
  • New car owners
  • Farm Bureau members

Bad for

  • Online insurance shoppers

Editor's Rating

3.5/5.0

Find the Cheapest Auto Insurance Quotes in Your Area

Currently insured?
{"id":6,"isAgeFieldVisible":true,"isInsuranceTypeFieldVisible":true,"isInsuredStatusFieldVisible":true,"customEventLabel":"","defaultZip":"","defaultProduct":"auto","quoteWizardEndpoint":"https:\/\/quotes.valuepenguin.com","trackingKey":"_allied-auto-insurance-review","title":"Find the Cheapest Auto Insurance Quotes in Your Area","vendor":"vp"}

Allied Insurance, a company owned by Nationwide, has a lot going for it. The company offers low rates, a wide range of discounts and impeccable financial stability. However, it has middle-of-the-road service reviews from customers.

Allied car insurance: Our thoughts

Overall, we came away very impressed with Allied's auto insurance offering. The company offers low rates for a wide variety of drivers, including single people, families and older drivers. The company also boasts a wide array of optional coverage benefits, ranging from accident forgiveness to roadside assistance.

In particular, Allied offers a number of benefits and discounts to safe drivers. People who haven't been in an accident or received a ticket in a few years will see their rates decrease, and they're also eligible for a lower collision/comprehensive deductible.

Owners of new cars may also find unique value in Allied's discounts and coverages. Allied offers a discount specifically for new vehicles, which may offset the increased cost to insure a new vehicle. It also offers new-car replacement coverage, which pays for a completely new car if yours is totaled or stolen in the first three years you own it.

Allied customers can also use Nationwide's highly rated mobile app. In the app, drivers can easily access policy information, file a claim and get quotes.

The one place where Allied doesn't shine is customer service reviews, which are middle-of-the-road. Consumers have reported an average number of complaints to the National Association of Insurance Commissioners about Allied, and it receives below-average consumer satisfaction scores from J.D. Power.

Unfortunately, the only way to get a quote for an Allied policy is to contact an independent agent, as Allied insurance quotes aren't available online. However, Allied's parent company, Nationwide, does offer online quotes, along with many of the same services and benefits.

Bottom line: Allied Insurance and its parent company, Nationwide, offer affordable rates and a variety of benefits. But if you value customer service over all else, Allied may not be the perfect fit.

Cost of Allied Insurance vs. competitors

We were very impressed with the cost of Allied when compared to other major insurance companies. It offered below-average rates for each of our four sample driver profiles and 32% less than the average quote we received overall.

We were particularly impressed by Allied's rates for a family of three: The cost to insure two 50-year-olds and one 16-year-old with two cars was just $1,236, which is 49% less than the average price we collected.

Bar chart comparing the costs of insurance for four different driver profiles across Allied insurance and four competitors

However, Allied wasn't always the cheapest insurer. Among the companies and customer profiles we surveyed, USAA offered better rates for younger married couples and 65-year-old couples. It's always essential to check with multiple insurers to find the best price on car insurance.

Allied car insurance coverages and benefits

As part of Nationwide, Allied offers an extensive selection of optional coverages and benefits to supplement your car insurance policy. For new-car drivers, Allied offers "good as new" coverage, sometimes called new car replacement. For up to three years after you buy a new vehicle, this coverage will pay for a completely new replacement vehicle if your car is totaled or stolen.

Allied's loss of use coverage is also more flexible than many competitors. Rather than limiting you to renting a car, you can also use the funds to pay for alternative forms of transportation, such as ride-share or public transit.

Allied car insurance optional coverages

  • Loss of use coverage pays for transportation costs while your car is being repaired after a crash. You can rent a car or use the money for public transportation and cabs.
  • Accident and minor violation forgiveness protects you against rate increases after one at-fault accident or minor violation, such as a speeding ticket.
  • Good-as-new coverage pays to replace your car if it's been totaled or stolen for up to three years after buying a new car.
  • GAP coverage pays for the difference between your car's actual cash value (ACV) and the amount you have left on your lease or loan if your vehicle is totaled or stolen.
  • Vanishing deductible decreases your deductible by $100 for each year of safe driving.
  • Total loss deductible waiver covers your collision or comprehensive deductible if your car is totaled in a crash.
  • Roadside assistance includes a variety of services if your car breaks down. Allied offers two levels of coverage.

Allied Extra: Benefits for bundling home and auto insurance

If you bundle your homeowners and auto insurance policies together at Allied, you'll automatically receive a few extra perks called "Allied Extra." Benefits include:

  • A single deductible if both your home and car are damaged from the same incident (such as a fire).
  • Free emergency locksmith services if you're locked out of your home or car.
  • Free air bag replacement after a crash.
  • Free accidental death benefit of $10,000 if you're killed in a covered auto accident.

These extras are in addition to Allied's multipolicy discount, so if the rates you receive from Allied for home and auto insurance are competitive, these perks may make a bundle even more appealing.

Commonly available coverages from Allied

Allied also provides all legally required and other typical car insurance coverages:

  • Liability coverage pays for property damage and medical expenses for other people when you are at fault in an accident.
  • Medical payments/PIP pays for your own medical expenses, regardless of who is at fault in an accident.
  • Uninsured/underinsured motorist coverage pays for your own medical and property damage expenses if the other party is at fault in a crash, but does not have liability insurance.
  • Collision coverage pays for damage to your vehicle after a crash, regardless of who is at fault.
  • Comprehensive coverage pays for theft or noncollision damage to your vehicle.

Allied insurance discounts

Allied Insurance offers an array of discounts for safe driving or policy bundling. grouping multiple policies together. However, many of the discounts it offers are also available at competing insurers. One exception is Allied's special discount for members of the Farm Bureaus of California, Delaware, Maryland, Ohio or Pennsylvania.

  • Multipolicy/bundle discount if you have Allied car insurance plus home or life insurance policies
  • Multivehicle discount for insuring multiple vehicles
  • New vehicle discount for insuring new vehicles
  • Accident-free discount for each year you don't get in an accident
  • Good student discount for students with a B average or better
  • Prior carrier discount for switching to Allied from another insurer
  • Farm Bureau discount for being a member of Farm Bureau in California, Delaware, Maryland, Ohio or Pennsylvania

Allied Insurance reviews and ratings

Allied has slightly better-than-average customer service reviews. The company has a 0.99 complaint ratio from the National Association of Insurance Commissioners, indicating it has slightly fewer complaints than other similarly sized companies. The most common reasons customers filed complaints were displeasure with the claims process, especially delays and unsatisfactory settlement amounts.

However, Allied and its parent company, Nationwide, do have poor ratings in other areas. Consumer survey company J.D. Power found that Nationwide had low consumer satisfaction for both insurance shopping and claims satisfaction, giving the company two out of five stars in both categories.

Allied has very strong financial stability. Allied's parent company, Nationwide, has an A+ financial stability rating from A.M. Best. This means Nationwide and its subsidiaries have a "superior" ability to pay out claims. An A+ is the second-best rating that A.M. Best offers, behind A++.

Methodology

All sample drivers live in the Ames, Iowa area and own one or two 2017 Hyundai Sonatas.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Comments and Questions

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.