. SafeAuto agreed to the purchase through Allstate’s subsidiary National General.
The deal includes a $270 million cash purchase, with an additional $30 million in pre-close dividends of certain non-insurance assets.
Allstate’s acquisition is part of bigger expansion plans for the insurance company. With the purchase, SafeAuto will merge with National General, which was also purchased by Allstate earlier this year.
Learn more about Allstate’s new acquisition and its position in the insurance industry below.
What is SafeAuto?
The Ohio-based SafeAuto was founded in 1993 and provides car insurance that meets the minimum legal requirements in 28 states. The company offers 24-hour, seven-days-a-week, direct-to-consumer car insurance sales and customer contact centers through its website and 1-800-SafeAuto.
SafeAuto insurance usually appeals to budget-conscious consumers who depend on their cars but can’t afford more than the minimum limits coverage.
The company’s mobile app allows customers to easily start and stop coverage and manage policies. SafeAuto also offers immediate coverage and flexible payment plans.
acquired National General for $4 billion in January. The current plan is to merge the two companies’ direct-to-consumer non-standard auto insurance operations.
Despite the merger, National General and SafeAuto will continue to operate under their current names, according to
, Allstate was the fourth-largest private passenger auto insurer in the nation last year, with nearly $22.73 billion in direct premiums written and a 9.11 percent market share.
says will most likely be complete by the end of the third quarter of 2021, will help the industry giant hold its position in an increasingly competitive market.