Allstate and State Farm are two of the largest companies in the auto insurance industry, primarily because of their brand awareness and financial strength. But both companies have their relative strengths and trade-offs.
For example, State Farm earned a higher customer satisfaction rating in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study.1 In contrast, Allstate offers some coverage options that State Farm doesn’t.
If you’ve narrowed your choices between these two industry leaders, it’s critical to look at the details carefully. Comparing rates, customer service, coverage options, and discount opportunities can help you find the best option for your situation.
State Farm earned a higher J.D. Power customer satisfaction score and a higher Insurify Quality (IQ) Score than Allstate. State Farm’s IQ Score is 9.3, and Allstate has an IQ Score of 8.9.
State Farm also tends to offer lower average rates than Allstate for both liability-only and full-coverage policies. However, Allstate offers slightly more opportunities to score a discount.
Both insurance companies offer lower average premiums than the national average.
Drivers looking for more add-ons, including gap insurance, might prefer to work with Allstate. In contrast, State Farm doesn’t offer specialty coverage options like gap insurance.
Both insurers offer rideshare coverage to their customers.
Allstate is the fourth-largest property/casualty insurer in the United States based on direct premiums written.2 Although Allstate’s rates tend to be higher than State Farm’s, it earned an above-average J.D. Power customer satisfaction score.
State Farm is the largest U.S. property/casualty insurer based on direct premiums written.2 But even with its large size, State Farm keeps policyholders happy with a high level of customer satisfaction and relatively low car insurance rates.
Allstate’s Drivewise and State Farm’s Drive Safe & Save usage-based telematics programs both offer an opportunity for safe drivers to earn a discount on their insurance premiums.
Allstate’s Drivewise program is a free option you can add to any Allstate insurance policy. You can sign up for the program by downloading the mobile app, which will track your driving behavior. Every six months, you could receive a policy credit for practicing safe driving habits. But the exact discount you receive varies based on your driving behavior and location.3
In contrast, State Farm’s Drive Safe & Save program advertises a discount of up to 30%. Most drivers will connect to the program through a mobile app. But if you have an eligible Ford or Lincoln vehicle, you can link the program directly to your vehicle. The program rewards safe drivers with a discount on their insurance premiums.4
Neither program will raise your rates if it detects poor driving habits.
Car insurance companies determine your insurance premiums through slightly different methods. Your age, gender, marital status, driving record, credit history, and more all affect your premiums. This is why it’s important to compare quotes from several insurers to find the best policy for you. But State Farm offers more competitive rates than Allstate, on average.
Drivers without any incidents, like speeding tickets or at-fault accidents, typically pay lower rates with State Farm. Here, you can see how full-coverage monthly rates compare for drivers with a clean record.
After a speeding ticket, drivers face higher average insurance premiums with Allstate. Here, you can see how each insurer’s full-coverage monthly rates stack up.
Young drivers pay more for car insurance than drivers with more experience behind the wheel. However, State Farm offers lower average monthly car insurance premiums than Allstate for teen drivers.
Allstate customers with poor credit enjoy lower rates than State Farm. But in general, drivers with a bad credit score can expect to pay higher rates for insurance than drivers with a good credit score. Keep in mind California, Hawaii, Massachusetts, and Michigan prohibit insurers from using credit as a rating factor.
State Farm offers senior drivers (generally drivers in their 60s or older) lower average premiums than Allstate. But shopping around can help senior drivers find the better choice for their situation.
Both Allstate and State Farm offer standard coverage options like bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorist coverage, collision, and comprehensive coverage.
However, there are some differences in their extra coverage options. For example, Allstate offers gap insurance and State Farm doesn’t. The table below illustrates some of the coverages available with each insurer.
State Farm and Allstate each offer a suite of discounts.
State Farm drivers have access to more discount opportunities than Allstate drivers in most states. But both insurers offer several insurance products, including home insurance and life insurance, and they offer a discount for bundling the products with your auto insurance.
The table below illustrates which discounts are available to drivers through each insurance company.
If you have questions about carrying car insurance through Allstate and State Farm, you can find answers here.
Every driver has a unique situation, which means the right insurance company is different for everyone. But in general, State Farm offers lower rates and earned a higher J.D. Power customer satisfaction rating in most regions.
State Farm is a bigger insurance company than Allstate based on market share. But in terms of direct premiums written, both companies rank in the top five largest car insurance companies.
State Farm is the largest auto insurer in the U.S. by market share, owning a cumulative 16.84% of the market, according to NAIC data. In terms of direct premiums, Progressive is the second-largest U.S. auto insurer. GEICO, owned by Berkshire Hathaway, is the third-largest car insurer by market share, while Allstate and USAA are fourth and fifth, respectively.
Price is one main difference between Allstate and State Farm auto insurance policies. In general, State Farm offers lower average rates than Allstate. However, Allstate offers more add-on coverage options, including gap coverage and accident forgiveness for all customers.
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