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Comparing Allstate and State Farm
When it comes to their reputations, both Allstate and State Farm have positive industry ratings from several organizations.
| Allstate | State Farm | |
|---|---|---|
| Year Established | 1931 | 1922 |
| AM Best Financial Strength Rating | A+ | A++ |
| Better Business Bureau (BBB) Rating | A+ | A+ |
| J.D. Power 2022 U.S. Insurance Shopping Study℠ Score | 853 out of 1,000 | 877 out of 1,000 |
| Our Award | Best Customer Experience |
About Allstate
According to the National Association of Insurance Commissioners (NAIC), Allstate is the fourth-largest auto insurance provider in the U.S. behind State Farm, Geico and Progressive. The company wrote $27.2 billion in premiums in 2021 and holds 10.4% market share in the car insurance industry.
Allstate was founded in 1931, selling auto insurance through the Sears catalog. Allstate insurance policies are available nationwide, although discounts and add-on coverages vary by state.
About State Farm
The NAIC reported that State Farm owned 15.9% of the U.S. car insurance market in 2021, writing over $41.6 billion in auto insurance premiums during the year. State Farm boasts more than 19,000 insurance agents across the country. The company’s auto insurance coverage is available in all states, although 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 excellent standing in the insurance industry at large.
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 coverage and comprehensive coverage.
You’ll find some differences between Allstate and State Farm coverages when it comes to add-on policies. Allstate, for example, offers gap insurance that covers the difference between what your car is worth and what you owe on it in the event of a total loss. State Farm offers a similar benefit called Payoff Protector®, but it’s only available for customers with a loan contract from State Farm Bank.
| Allstate | State Farm | |
|---|---|---|
| Bodily injury liability (BI) | ✓ | ✓ |
| Property damage liability (PD) | ✓ | ✓ |
| Collision coverage | ✓ | ✓ |
| Comprehensive coverage | ✓ | ✓ |
| Medical payments (MedPay) | ✓ | ✓ |
| Personal injury protection (PIP) | ✓ | ✓ |
| Uninsured/underinsured motorist (UM/UIM) | ✓ | ✓ |
| Roadside assistance | ✓ | ✓ |
| Rental car reimbursem*nt coverage | ✓ | ✓ |
| Rideshare insurance | ✓ | ✓ |
| Accident forgiveness | ✓ | ✓ |
| Mexico and Canada car insurance | ✓ | |
| Trip interruption benefits | ✓ | ✓ |
| Sound system insurance | ✓ |
Allstate vs. State Farm: Usage-Based Insurance
Allstate’s telematics insurance program is called Drivewise®. Drivers can unlock savings simply by activating the program for free in the Allstate mobile app. Along with tracking safe driving behaviors that can earn discounts, Drivewise also includes a crash detection safety feature that helps drivers call for help after an accident.
Drivewise offers driving challenges like keeping your speed below 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 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 take corners, as well as how often you hit the brakes hard. The times of day you drive the most and how much you use your phone in the car are also monitored.
Drive Safe & Save is not available to drivers in California, Massachusetts or Rhode Island. As with Allstate’s usage-based program, North Carolina drivers may not be eligible for some Drive Safe & Save discounts.
Allstate vs. State Farm Pricing
Price is one of the most significant differences between Allstate and State Farm coverage. In our 2023 review, we give State Farm a 9.3 out of 10.0 for cost, while Allstate receives only a 7.4. 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 stated otherwise.
*Cost data in chart based off 2022 information
Allstate vs. State Farm Cost Estimates
Car insurance rates vary widely based on personalized factors such as age and driving history, but Allstate typically 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 auto insurance policies.
| Driving Profile Factor | Allstate Cost Estimate | State Farm Cost Estimate |
|---|---|---|
| Good driver, good credit, age 35 | $2,598 | $1,657 |
| Teen driver (age 16) | $11,263 | $5,514 |
| Has a recent car accident | $4,094 | $1,953 |
| Has a recent speeding ticket (16-20 mph over limit) | $3,012 | $1,872 |
| Has a driving under the influence (DUI) conviction | $3,803 | $2,194 |
Allstate vs. State Farm Discounts
Allstate and State Farm offer many of the same saving opportunities, such as discounts for safe drivers and for bundling your auto policy with a renters or home insurance policy. However, there are some differences in the discounts they offer as well.
State Farm doesn’t offer a pay-in-full discount, for example, but it does offer a discount for going accident-free for three continuous years. Allstate policyholders can take advantage of a paperless discount, while State Farm customers can’t.
| Allstate Car Insurance Discounts | State Farm Car Insurance Discounts | |
|---|---|---|
| Multi-policy | ✓ | ✓ |
| Multi-car | ✓ | ✓ |
| Good student | ✓ | ✓ |
| Safe driving | ✓ | ✓ |
| Accident-free | ✓ | |
| Defensive driving | ✓ | |
| Student away at school | ✓ | ✓ |
| Anti-theft device | ✓ | |
| Passive restraint | ✓ | |
| Usage-based | ✓ | ✓ |
| Pay-in-full discount | ✓ |
Allstate vs. State Farm: Customer Experience
State Farm ranks highly in two key auto insurance studies. In the J.D. Power Insurance Shopping Study, State Farm ranked first among large insurers with 877 out of 1,000 possible points. The company came in third among large insurers in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study℠ with 891 out of 1,000 points.
Allstate ranked below average in the Insurance Shopping Study, with 853 out of 1,000 points. Allstate fared much better in the Auto Claims Satisfaction Study, ranking above the national average with a score of 882.
Both Allstate and State Farm hold A+ ratings from the BBB, although customer ratings on BBB are very low for both companies. It’s 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: The Bottom Line
You’ll notice a lot of similarities when comparing Allstate vs. State Farm. Both companies have long histories of providing quality auto coverage to all kinds of drivers. However, Allstate’s higher-than-average rates leave it well behind State Farm in our rankings of the best car insurance companies.
| Allstate | State Farm | |
|---|---|---|
| Overall Rating | 8.8 | 9.4 |
| Reputation | 9.5 | 10 |
| Availability | 10 | 9.8 |
| Coverage | 9.2 | 9.2 |
| Cost | 7.4 | 9.3 |
| Customer Experience | 8.7 | 9.3 |
Other Recommended Car Insurance Providers
Finding the best rates is a matter of comparing car insurance quotes from multiple providers. The following insurance companies are ideal options to include in your search.
Geico: Best for Budget-Conscious Drivers
Geico is the second-largest auto insurer in the U.S. according to the NAIC. The company holds an A+ rating from the BBB and an A++ financial strength rating from AM Best. Geico also holds our highest rating for industry reputation, with a 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
Travelers: Best for Most Drivers
We give Travelers a 9.5 out of 10.0 for coverage options, making it the highest rating in that category. The company offers full-coverage car insurance policies at an average cost of $1,595 per year, which falls below the national average of $2,008 annually. Travelers has been in business for over 150 years and boasts an A++ financial strength rating from AM Best.
Keep reading: Travelers insurance review
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Allstate vs. State Farm: FAQ
Allstate’s average auto insurance rates are significantly higher than State Farm’s. The average annual cost of a full-coverage policy from Allstate is $2,598. For State Farm, the average annual cost is $1,697.
Geico is second to State Farm in terms of auto insurance market share. According to the NAIC, State Farm holds 15.93% of the market, while Geico holds 14.31%.
State Farm received a score of 891 out of 1,000 possible points in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study. This put the company in first place among large insurers and above the industry average score of 878.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
