If you watch Allstate vs. State Farm, you will notice many similarities. Both companies offer a wide variety 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, primarily due to higher-than-average premiums.
We at the Guides Auto Team took a deep dive into 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 auto insurance policy.
Comparing Allstate and State Farm
When it comes to their reputation, both Allstate and State Farm have positive reviews from various organizations.
According to the National Association of Insurance Commissioners (NAIC), Allstate is the fourth largest auto insurance company in the US after State Farm, Geico and Progressive. The company wrote $27.2 billion in premiums in 2021 and has a market share of 10.4% in the motor insurance sector.
Allstate was founded in 1931 and sold auto insurance through the Sears catalog. All state insurance plans are available nationwide, although discounts and additional coverages vary by state.
About state farm
This is reported by the NAIC State farm owned 15.9% of the U.S. auto insurance market by 2021 and wrote more than $41.6 billion in auto insurance premiums during the year. State Farm has more than 19,000 insurance agents nationwide. The company’s auto insurance is available in all states, although it no longer sells new policies in Massachusetts or Rhode Island.
State Farm celebrated its 100th anniversary in 2022. The company offers affordable rates for most drivers and maintains an excellent reputation in the insurance industry as a whole.
Allstate vs. State Farm: Coverage
It’s easy to purchase standard coverages from Allstate and State Farm. These common insurance products include bodily injury and property damage liability insurance, uninsured motorist protection, collision cover and comprehensive coverage.
There are some differences between Allstate and State Farm coverages when it comes to additional policies. For example, Allstate offers gap insurance that covers the difference between what your car is worth and what you owe on it at a total loss. State Farm offers a similar perk called Payoff Protector®but it is only available to customers with a loan contract from State Farm Bank.
Allstate vs. State Farm: Usage-Based Insurance
All states telematics insurance program is called Drivewise®. Drivers can easily save money by activating the program for free in the Allstate mobile app. In addition to safe driving tracking that can earn discounts, Drivewise also includes a crash detection safety feature that allows drivers to call for help after an accident.
Drivewise offers driving challenges, such as keeping your speed under 80 miles per hour and avoiding hard braking for certain periods of time. Allstate’s usage-based insurance product is available in 49 states, although drivers in 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 sign up for the program receive an instant discount and drivers can save up to 30% by adopting safe driving habits. Drive Safe & Save tracks how fast you accelerate and corner, and how often you brake hard. It also tracks what times of the day you drive the most and how much you use your phone in the car.
Drive Safe & Save is not available for drivers in California, Massachusetts or Rhodes Island. As with Allstate’s usage-based program, North Carolina drivers may not be eligible for certain Drive Safe & Save discounts.
Allstate vs. State Farm Prices
Price is one of the main differences between Allstate and State Farm coverage. In our 2022 rating, we give State Farm a 9.2 out of 10.0 for cost, while Allstate only gets a 6.5. As you can see in the chart below, State Farm’s average annual rate falls well below the national average, while Allstate’s is significantly higher.
*Note: All estimates are for full coverage insurance and 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 personal factors such as age and driving history, but Allstate charges higher rates on average for many types of drivers. Here are a few cost estimates from Allstate and State Farm that cover a range of driver profiles. All estimates below are for full coverage car insurance policies.
Allstate vs. State Farm Discounts
Allstate and State Farm offer many of the same savings options, such as safe driver discounts and for bundling your auto policy with renters or home insurance. However, there are some differences in the discounts they offer.
For example, State Farm does not offer a discount if you pay in full, but it does offer a discount if you are accident-free for three consecutive years. Allstate policyholders can take advantage of a paperless rebate, while State Farm customers cannot.
Allstate vs. State Farm: Customer Experience
State Farm ranks highly in two major auto insurance surveys. In the JD Power Insurance Shopping Survey, State Farm ranked first among major insurers with 885 out of 1,000 possible points. The company was third among major insurers in the JD Power 2022 US Auto Claims Satisfaction Study℠ with 882 points out of 1,000.
Allstate scored below average in the Insurance Shopping 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 have an A+ rating from the BBB, although customer ratings on BBB are very low for both companies. It is important to note that customers are more likely to report negative experiences to the BBB than positive ones, and these low BBB customer ratings are standard 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 high-quality car coverage to all types of drivers. However, Allstate’s higher-than-average rates leave it far behind State Farm in our ranking of the best auto insurance companies.
Other Recommended Auto Insurance Providers
Finding the best rates is a matter of compare car insurance quotes from multiple providers. 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 US, according to the NAIC. The company holds one A+ rating of the BBB and a A++ financial strength from AM Best. Geico also has our highest reputation rating in the industry, with a 9.8 out of 10.0. Low rates and various discounts make Geico a smart option for any type of driver.
Keep reading: Geico insurance overview
Travelers: Most coverage options
We give Travelers a 9.3 out of 10.0 for coverage options, tying it USAA for the highest rating in that category. The company offers full coverage car insurance at an average cost of $1,669 per year, which falls below the national average of $1,730 per year. Travelers has been around for over 150 years and can boast one A++ financial strength from AM Best.
Keep reading: Traveler insurance review
Because consumers trust us to provide objective and accurate information, we’ve developed an extensive rating system to formulate our ranking of the best auto insurance companies. We’ve collected data from dozens of auto insurers to rate the companies on a wide variety of ranking factors. The end result was a total score per provider, with the insurers with the most points at the top of the list.
Here are the factors our ratings take into account:
- Cost (30% of the total score): Auto insurance estimates generated by Quadrant Information Services and discount opportunities were both considered.
- Coverage (30% of total score): Businesses that offer different options for insurance coverage are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team took into account market share, assessments from industry experts and years of experience when giving this score.
- Availability (10% of the total score): Auto insurance companies with more state availability and few eligibility requirements scored highest in this category.
- Customer experience (15% of total score): This score is based on the number 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.