Allstate Celebrates its 75th Anniversary - Its History Says a Lot About Today

In 1931, while playing bridge on a commuter train into downtown Chicago, General Robert Wood had a brainstorm. Wood, then the president of Sears Roebuck, couldn’t help but notice the large number of cars on the roads flying by his train window. There were many more than there had been even the year prior. America's love affair with automobiles had begun, and Wood saw a money-making opportunity. People would need car insurance, and he could help them get it. The company he founded is still around today, and 24's former-president David Palmer is their spokesman. You guessed it, the company is Allstate.

Car Insurance By Mail

Selling car insurance through the mail wasn’t something new, but in the 1930's who knew mail order sales better than Sears Roebuck? Using the resources at his disposal, Wood was able to sell insurance in high volume. This amounted to car insurances rates that were up to twenty percent lower than other major car insurance companies.

Allstate started slow, but then the company made an appearance at the 1933 World's Fair. Customers were impressed with their low prices, and confident in the Sears Roebuck name. Allstate was closely linked to Sears in the beginning. General Wood even got the name "Allstate" from a brand of tire sold in the Sears catalog!

Soon the ranks of Allstate policy-holders soared. The company began tailoring their plans to individual customers. They started charging based on the age and mileage of the vehicle, as well as the common use. This helped Allstate win even more loyal customers as people started seeing their savings grow.

The End of an Era

For many years, Allstate agents operated out of Sears stores. Many readers may remember a time when they went down to Sears to renew their policy. It was a great partnership. The two businesses helped Sears and Allstate grow together into very powerful brand names. However, Sears eventually decided that it was time for Allstate to become it's own entity.

In 1993, Sears took their Allstate Insurance branch public. The 1993 stock sale was actually the largest initial public offering (IPO) of stock in history at that time. It says a lot about the Allstate name and the Sears name.

Once it was its own company, Allstate diversified their business, selling not just car insurance, but homeowner's and life insurance, as well as other products. By 1995, the company was completely stand-alone, detached from Sears.

Making Your Car Insurance Choice

There are a lot of factors to consider when shopping for car insurance. Heading down to the local Sears used to be a matter of convenience. Now, with the internet, you can compare companies big and small, local and far-flung, old and new. You can choose the features that work for you, and the type of service that you expect.

Whether you prefer a company with a long and illustrious history, or a state-of-the-art company with all the latest tech innovations, you can find rate information here at carinsurancerates.com. You can compare all different types of companies with the click of a button. No matter what you prefer in a car insurance company, price is important. Take a couple of minutes and comparison shop. The rates available might surprise you!