Allstate’s accident forgiveness premium policy plans

Reader question:

AllState has this new deal called a premium policy that’s supposed to give you added perks on your car insurance for a little extra. What is it, and is it any good?


It probably isn’t good for most people.

Allstate is now offering two new premium policies, which it calls the Gold Protection policy and the Platinum Protection policy. These policies, offered in thirty seven states, add money to your policy costs while giving you a few little presents that may not be worth much at all. Let’s look into it a little more closely.

Gold Protection: Adds 5-7% to your current policy rate. Every year you go without an accident, you get your deductible reduced by $100, with a maximum reduction of $500. You are also given the guarantee that if you get into an accident for the first time, your premium will not go up.
Platinum Protection: This one adds 14-15% to your current policy rate. You are able to be forgiven for more than one accident, and you get a 5% discount on your premium for as long as you go accident-free. You can also add on an option for something called ‘new vehicle replacement’. This costs an additional 2% and what it does, basically, is allow you, if your car is totaled and needs to be replaced, to buy a brand new car instead of getting the depreciated value of your totaled car.

Allstate claims they came up with these plans in response to demand, but it still seems a little silly. Why is that? Because, with a little looking around, you can get most of these ‘perks’ that you’re paying extra for, for free. Companies like Nationwide will forgive your first accident, and many other companies do the same, with no extra fee. Nationwide will even forgive other crashes after three years of good driving.

The one good thing is the add on for the new vehicle replacement. The chances that you will total your brand new car are very, very slim, but it is such an awful thing to happen that you want to protect yourself against it if you can. First, though, call your financing company and see if they can’t offer you something better.


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Frank

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