There are three types of insurance carriers: mandatory, voluntary, and self-insuring. Mandatory insurance is the kind that you must have if you drive a car on public roads. This type of carrier is usually owned by the state and sets rates for all drivers.
Voluntary insurance is the kind you can buy yourself and provides coverage when you need it. Self-insuring means that the company assumes some of the risk and pays out on claims itself. Check online resources to get more information about Insurance terminology.
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This type of carrier is more common in Europe than in the United States because it is more expensive to set up here. Although compulsory insurance is a European idea, most people in the United States do not have it.
Thus, if you hear the phrases “compulsory insurance” or “mandatory car insurance,” you are hearing about something that exists only in Europe.
Allstate makes its premium rates as low as possible so that they will be competitive with other companies. Allstate claims to charge less than its competitors because it has a reputation for being more customer friendly and better at resolving claims. This helps keep Allstate prices comparatively low compared to the premiums of the major companies like State Farm and Geico.
How do Allstate Price Rates Compare to the Competition?
Allstate benefits from having many customers who have been with the company for quite some time. These customers have developed a loyal following of other Allstate customers and are able to set the prices that Allstate charges for its insurance policies.