When considering Allstate vs. State Farm, you will notice many similarities. Both companies offer a wide range of coverage options and have excellent reputations in the auto insurance industry. The main difference between the two popular providers is affordability. State Farm’s consistently low rates helped it win the Editor’s Choice award in our 2022 review of the best car insurance businesses. Allstate ranked 13th in the study, largely due to its above-average premiums.
At Guides Auto Team, we’ve taken an in-depth look at each company’s coverage options, rates, discounts, and customer service to see how they compare. In this article, we’ll give you all the information you need to choose between Allstate and State Farm for your car insurance needs.
Comparison between Allstate and State Farm
Regarding their reputation, Allstate and State Farm have positive ratings from several organizations.
According to the National Association of Insurance Commissioners (NAIC), Allstate is the fourth largest auto insurance provider in the United States behind State Farm, Geico and Progressive. The company wrote $27.2 billion in premiums by 2021 and has a 10.4% market share in the automobile insurance sector.
Allstate was founded in 1931, selling auto insurance through the Sears catalog. Allstate insurance policies are available nationwide, although discounts and supplemental coverages vary by state.
About the State Farm
The NAIC reported that state farm held 15.9% of the U.S. auto insurance market in 2021, writing about $41.6 billion in auto insurance premiums during the year. State Farm has more than 19,000 insurance agents across the country. The company’s auto insurance coverage is available in all states, though it no longer sells new policies in Massachusetts or Rhode Island.
State Farm celebrated 100 years in business in 2022. The company offers affordable rates for most drivers and maintains an excellent reputation in the insurance industry in general.
Allstate vs. State farm: hedging
It’s easy to buy standard blankets from Allstate and State Farm. These common insurance products include bodily injury and property damage liability insurance, protection of uninsured motorists, collision coverage and full coverage.
You will find differences between Allstate and State Farm coverage when it comes to supplemental policies. Allstate, for example, offers insurance gap which covers the difference between what your car is worth and what you owe in the event of a total loss. State Farm offers a similar benefit called Payoff Protector®but it is only available to customers with a State Farm Bank loan contract.
Allstate vs. State Farm: Usage-Based Insurance
All States telematics insurance the program is called Drivewise®. Drivers can unlock savings simply by activating the program for free in the Allstate mobile app. Besides tracking safe driving behaviors that can generate discounts, Drivewise also includes an accident detection safety feature that helps drivers call for help after an accident.
Drivewise offers driving challenges such as keeping your speed below 80 miles per hour and avoiding hard braking during certain periods. Allstate’s usage-based insurance product is available in 49 states, although drivers from Arkansas, New York and North Carolina may not be eligible for all discounts.
Drive Safe & Save™ is State Farm’s usage-based program. Those who join the program get an instant discount and drivers can save up to 30% by maintaining safe driving habits. Drive Safe & Save tracks how fast you accelerate and corner, as well as how often you hit the brakes hard. The times of day you drive the most and how often you use your phone in the car are also monitored.
Drive Safe & Save is not available for drivers of California, Massachusetts Where Rhodes Island. Similar to Allstate’s usage-based program, North Carolina drivers may not be eligible for certain Drive Safe & Save discounts.
Allstate vs. State farm pricing
Price is one of the biggest differences between Allstate and State Farm coverage. In our 2022 review, we give State Farm a score of 9.2 out of 10.0 for cost, while Allstate only receives a score of 6.5. As you can see from the chart below, State Farm’s average annual rate is well below the national average, while Allstate’s is significantly higher.
*Note: All estimates are for full insurance and are based on the standardized profile of a 35 year old driver with a clean driving record and good credit history, unless otherwise stated.
Allstate vs. State Farm Cost Estimates
Auto insurance rates vary widely based on custom factors such as age and driving history, but Allstate generally charges higher rates on average for many types of drivers. Here are some cost estimates from Allstate and State Farm that cover a range of driver profiles. All estimates below are for full coverage auto insurance policies.
Allstate vs. State Farm Discounts
Allstate and State Farm offer many of the same savings opportunities, such as discounts for safe drivers and for bundling your auto policy with a renter’s or homeowner’s insurance policy. However, there are also differences in the discounts they offer.
State Farm does not offer a full payment discount, for example, but does offer a discount for being accident-free for three consecutive years. Allstate policyholders can take advantage of a paperless discount, unlike State Farm customers.
Allstate vs. State Farm: Customer Experience
State Farm ranks highly in two key auto insurance studies. In the JD Power Insurance Buying Study, State Farm ranked first among major insurers with 885 points out of a possible 1,000. The company ranked third among major insurers in 2022 JD Power U.S. Automotive Claims Satisfaction Study℠ with 882 points out of 1000.
Allstate ranked below average in the Insurance Purchasing Study, with 854 points out of 1,000. Allstate fared much better in the Auto Claims Satisfaction Study, ranking first among major insurers with a score of 889.
Both Allstate and State Farm hold A+ ratings from BBB, although customer ratings on BBB are very low for both companies. Importantly, customers are more likely to report negative BBB experiences than positive ones, and such low BBB customer ratings are the norm in the insurance industry.
Allstate vs. State farm: conclusion
You will notice many similarities when comparing Allstate vs. State farm. Both companies have a long history of providing quality auto coverage for all types of drivers. However, Allstate’s above-average rates leave it far behind State Farm in our ranking of the best car insurance companies.
Other Recommended Car Insurance Providers
Finding the best rates is a matter of compare car insurance quotations from several suppliers. The following insurance companies are ideal options to include in your search.
Geico: affordable for most drivers
Geico is the second largest auto insurer in the United States according to the NAIC. The company holds a A+ rating BBB and a Financial strength rating A++ by AM Best. Geico also holds our highest rating for reputation in the industry, with a rating of 9.8 out of 10.0. Low rates and a variety of discounts make Geico a smart option for any type of driver.
keep reading: Geico Insurance Review
Travellers: most coverage options
We give travelers a rating of 9.3 out of 10.0 for coverage options, on par with USAA for the highest score in this category. The company offers comprehensive car insurance policies at an average cost of $1,669 per year, which is below the national average of $1,730 per year. Travelers has been in business for over 150 years and has a Financial strength rating A++ by AM Best.
keep reading: Traveler’s Insurance Review
Because consumers rely on us to provide unbiased and accurate information, we’ve created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of car insurance providers to score companies on a wide range of ranking factors. The end result was an overall score for each provider, with insurers who scored the most points at the top of the list.
Here are the factors taken into account by our assessments:
- Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage (30% or full score): Companies that offer a variety of insurance coverage choices are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team considered market share, industry expert ratings, and years in business to assign this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and fewer eligibility criteria scored higher in this category.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by JD Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own customer analysis.
*Data correct at time of publication.