Allstate and State Farm are two great options to consider when choosing an insurance provider. Both insurance companies are reputable, well-known companies, but there may be some variations between the average cost of each provider and what discounts are available. Let’s consider Allstate insurance vs. State Farm to learn about out what’s similar and different and to help you choose the best policy for you.
What is Allstate Insurance?
Allstate is the second-largest insurance company with 9.88% of the United States market share. Some pros of Allstate to consider include:
- Great rates for drivers with poor credit history
- Access to a driver tracking program that can reduce the cost of premiums
- Inclusive coverage options that fit most people’s needs
- Lower than average customer complaints
- A few different telematic options available for discounted rates
In general, Allstate may have higher insurance rates when compared to State Farm’s rates. Specifically, Allstate tends to be one of the priciest options for teen drivers, regardless of their driving history. However, the specific monthly payment you pay will vary depending on a number of factors, including age, gender, location, and driving record. Allstate may be a better option for some high-risk categories, like drivers with poor credit.
What is State Farm Insurance?
State Farm is the largest insurance company in the United States with 16.73% of the market share. Some advantages of State Farm to consider include:
- High customer satisfaction ratings
- Competitive rates across many categories
- Numerous types of available coverage
- Local agents all over the U.S. for a more personalized experience
- Discounts for people who drive less frequently, like students or deployed military
State Farm does tend to have higher rates for drivers with poor or no credit history. State Farm prices may also be higher for drivers with a bad driving record. This includes drivers with previous accidents or tickets on their records. Beyond that, State Farm does tend to be a cheaper option across other driving categories.
While State Farm has a good customer rating for policy satisfaction, they do have some complaints regarding their claims process. It’s important to note, however, that when it comes to customer service, your experience may vary depending on your representative. Both Allstate and State Farm use independent agents which can affect the sales and claims process.
Similarities Between Allstate and State Farm
There are some similarities between Allstate and State Farm to know. Both companies are well-known, reputable brands that are available in all 50 U.S. states. They both have various categories of discounts available, which include things like good student, safe driver, multi-policy, and multi-vehicle discounts. These are discounts that can help to bring down the cost of your monthly payment.
Both Allstate and State Farm have online and in-app services that make it easy for you to ask questions about your policy or file a claim. You can also access your insurance information with both providers online. The types of insurance available are also the same across both providers. Both Allstate and State Farm have:
- Personal liability coverage
- Collision coverage
- Comprehensive insurance
- Medical payments insurance
- Uninsured motorist insurance
- Underinsured motorist insurance
The specific requirements vary based on the state in which you live. Additionally, whether you live in a state that follows no-fault auto insurance laws also affects your policy cost. There will also be variations in cost between the minimum and full coverage policies. Always evaluate your insurance needs before requesting a price quote with either Allstate Insurance or State Farm.
Some of the available add-ons are also the same across Allstate and State Farm, with both offering things like ride-share insurance and roadside assistance. Both insurance providers offer insurance on other types of moving vehicles, like boats, motorcycles, RVs, and off-road vehicles.
Differences Between Allstate and State Farm
There are also some differences between the rates available with Allstate or State Farm. Allstate offers special rates for responsible payers, automatic payment discounts, paperless statement discounts, an early signing discount, and discounts for anti-lock brakes. State Farm doesn’t offer any of these. There are also a few add-on insurance policies State Farm doesn’t offer that Allstate does, depending on your state. Allstate Insurance also sells new car replacement insurance, custom parts coverage, and a deductible savings bank program.
State Farm also has a few discounts available that Allstate Insurance doesn’t offer. A few policies available through State Farm include defensive driving discounts, driver training course discounts, student away at school discounts, and discounts for airbags or passive restraints in the vehicle.
There are also differences between Allstate and State Farm regarding discounts for paying the policy in full or reduced plans for drivers who don’t drive as frequently. Allstate offers discounts if you pay your policy in full, whereas State Farm doesn’t. Allstate Insurance also offers a pay-per-mile rate. This means that drivers who drive less often can pay less for their policies.
Some drivers may qualify for accident forgiveness, which prevents your rates from increasing following an accident. To qualify for State Farm’s accident forgiveness program, you must be a policyholder for at least nine years. Allstate’s optional accident forgiveness program begins on the first day you sign up.
How to Choose Between Allstate Insurance or State Farm
The best way to find out whether Allstate Insurance vs State Farm is the best policy for you is to receive quotes from both insurance providers. Many factors go into an insurance rate, even beyond that of the provider. It’s free to get price quotes and you can usually request them online.
You’ll need information like your name, vehicle information, and driving history. The more details you can include, the more accurate your quote will be. Once you have price quotes from both Allstate and State Farm, compare not only the rates but also the level of coverage you receive with each policy.
Allstate and State Farm are both reputable providers. To find out which one is best for you, request a quote from each provider and then compare rates based on your specific characteristics.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
