Allstate vs. State Farm Insurance: Which is Better?
- Expertise: Auto insurance, home insurance and renters insurance
- Education: University of California-Berkeley (BA in History)
Rob Bhatt is a licensed insurance agent and joined the staff of Lending Tree in 2021. Previously, he spent more than 20 years writing for and editing regional publications in California, Nevada and Washington. Rob enjoys helping readers understand how different coverages work so they can make informed purchasing decisions, and he specializes in producing research-backed content for LendingTree about auto, home and renters insurance. His work has been cited by ABC, Business Insider, MSN and Yahoo.
State Farm offers cheaper rates on auto and home insurance than Allstate. State Farm also has higher customer service ratings.
However, Allstate does offer a few home and car insurance extras that State Farm doesn’t have.
Allstate vs. State Farm: Which is better for car insurance?
State Farm has cheaper car insurance quotes than Allstate and better customer service ratings. This makes State Farm a good choice for reliable insurance coverage at an affordable price.
Allstate is good for car insurance extras that State Farm does not offer. These include new car replacement, accident forgiveness, gap insurance and mechanical breakdown insurance.
Allstate
| Pros | Cons |
|---|---|
Offers new car replacement and accident forgiveness “Milewise” program helps low-mileage drivers save money Rated A+ for financial strength by A.M. Best | Higher-than-average auto insurance rates Below-average customer satisfaction ratings |
State Farm
| Pros | Cons |
|---|---|
Car insurance rates are cheaper than national averages Above-average customer satisfaction ratings Rated A++ for financial strength by A.M. Best | Fewer optional coverages than Allstate Does not offer pay-per-mile insurance |
Is State Farm cheaper than Allstate for car insurance?
State Farm has cheaper car insurance quotes for drivers with a clean record, drivers with a prior at-fault accident, and teens. Allstate is cheaper for drivers with a DUI conviction or bad credit.
Cheapest car insurance quotes for most drivers: State Farm
State Farm’s car insurance quotes are more than 40% cheaper than Allstate for most drivers without a traffic ticket or accident on their records.
State Farm charges an average of $597 a year for liability insurance, or $50 a month. This is 48% less than Allstate’s rate of $1,158 a year.
State Farm’s full-coverage rates are 43% less than Allstate’s average.
| Company | Liability annual rate | Full-coverage annual rate |
|---|---|---|
| State Farm | $597 | $1,487 |
| U.S. average | $772 | $1,970 |
| Allstate | $1,158 | $2,609 |
Liability insurance covers injuries and damage to others when you’re at fault in a car accident. Full coverage covers damage to your own car, whether from an accident, theft or other cause.
Cheapest quotes for drivers with a ticket or accident: State Farm
State Farm is cheaper than Allstate for drivers with a prior speeding ticket or accident.
State Farm’s quotes for drivers with a speeding ticket average $1,616 a year for full coverage, or $135 a month. This is 47% less than Allstate’s rate of $3,073 a year.
State Farm’s average rate for drivers with an at-fault accident is 55% less than Allstate’s rate.
| Company | Annual rate after ticket | Annual rate after accident |
|---|---|---|
| State Farm | $1,616 | $1,843 |
| U.S. average | $2,427 | $2,930 |
| Allstate | $3,073 | $4,125 |
Cheapest quotes for drivers with a DUI or bad credit: Allstate
Allstate also has cheaper quotes than State Farm for drivers with a DUI (driving under the influence) conviction or those with bad credit, although both companies charge more than average.
Allstate charges drivers with a DUI $3,875 a year for full coverage, or $323 a month. This is $12% less than State Farm’s rate of $4,402 a year.
Allstate charges drivers with bad credit an average of $4,211 a year, or $351 a month. State Farm’s rate is $5,654. (But note that several states don’t allow the use of credit history or score to calculate your insurance rate.)
| Company | Annual rate with a DUI | Annual rate with bad credit |
|---|---|---|
| U.S. average | $3,626 | $3,705 |
| Allstate | $3,875 | $4,211 |
| State Farm | $4,402 | $5,654 |
Cheapest quotes for teen drivers: State Farm
State Farm’s average quotes for teen drivers are nearly half the price of Allstate.
For example, State Farm charges 18-year-olds an average of $1,811 a year for liability insurance, or $151 a month. This is 47% less than Allstate’s rate of $3,399 a year.
State Farm’s full-coverage rate for 18-year-olds is 46% less than Allstate’s rate.
| Company | Liability annual rate | Full-coverage annual rate |
|---|---|---|
| State Farm | $1,811 | $4,128 |
| U.S. average | $2,433 | $5,824 |
| Allstate | $3,399 | $7,668 |
Allstate vs. State Farm teen driver discounts
Allstate and State Farm both offer discounts to young drivers who maintain good grades and/or head off to school without a car.
- Allstate gives young drivers an additional discount for completing teenSMART, an online driver training program.
- State Farm offers discounts to young drivers who complete Steer Clear, a program that combines online learning with on-road driving. You need three years of incident-free driving experience to get the Steer Clear discount. State Farm also offers a separate discount to young drivers who complete state-accredited driver training.
Best car insurance customer service: State Farm
State Farm has higher customer service ratings for car insurance than Allstate. These include better ratings for overall satisfaction and claims satisfaction from J.D. Power.
State Farm also gets a better complaint rating than Allstate, according to the National Association of Insurance Commissioners (NAIC).
Allstate vs. State Farm auto insurance ratings
| Rating | Allstate | State Farm | Industry average |
|---|---|---|---|
| Overall satisfaction (higher is better) | 814 | 833 | 820 |
| Claims satisfaction (higher is better) | 882 | 891 | 878 |
| Complaint rating (lower is better) | 0.9 | 0.8 | 1.0 |
Sources: J.D. Power, NAIC
Allstate vs. State Farm car insurance discounts: Tie
Allstate and State Farm both offer car insurance discounts that can add up to serious savings. You can usually save the most by bundling your car insurance with a homeowner or renters policy.
- Both companies also offer a big discount for signing up for their safe-driver programs. These programs use a smartphone app to monitor your driving. If you drive safely enough, you get discounts when you renew.
For Allstate:
- Its Milewise pay-per-mile insurance program can save you money if you don’t drive very often.
- Allstate offers an early-signing discount for buying your policy at least seven days before it begins. It also offers discounts for paying the policy in full and going paperless.
For State Farm:
- Although State Farm does not offer pay-per-mile insurance, it does have a low-mileage discount. You need to drive less than 7,500 miles a year to qualify.
- State Farm also offers a discount to mature drivers who complete an approved defensive driver class.
Allstate vs. State Farm car insurance discounts
| Discount | Allstate | State Farm |
|---|---|---|
| Bundling | Yes | Yes |
| Safe driving app | Yes | Yes |
| Pay-per-mile insurance | Yes | No |
| Low mileage discount | No | Yes |
| Defensive driver | No | Yes |
| Early signing | Yes | No |
Best car insurance coverage options: Allstate
Allstate has a better selection of optional car insurance coverages than State Farm. These extras include:
- New car replacement: Protects you from depreciation if your new car is totaled within the first two years.
- Accident forgiveness: Protects you from a rate increase after your first at-fault accident.
- Gap insurance: Covers any shortfall between your car’s value and your loan balance after a total loss. You may need this if your car is worth less than what you owe on it. Allstate offers this coverage as an addition to a financing agreement, as opposed to an insurance add-on. (State Farm only offers gap insurance for car loans from its own bank.)
- Mechanical breakdown insurance: Allstate’s extended vehicle protection is similar to an extended warranty. It covers breakdowns of your vehicle’s powertrain, core systems and technology for up to seven years.
- Mexican car insurance: You can get Mexican tourist car insurance quotes through Allstate’s website. The policies are from companies not affiliated with Allstate. Still, it’s a convenient way to shop, a feature that State Farm does not offer.
Both companies offer all the standard car insurance coverages you’d expect. These include:
- Liability: Pays for damage to other vehicles and persons if you’re at fault
- Collision: Covers repair or replacement of your vehicle after an accident
- Comprehensive: Pays for repair or replacement of your vehicle in an event not related to an accident, such as vandalism or theft.
- Uninsured motorist: Covers damage done by a driver with little or no insurance
- Medical payments: Covers medical costs stemming from an accident
- Personal injury protection (PIP): Can cover injury-related costs such as lost wages or rehabilitation
Allstate vs. State Farm: Which is better for home insurance?
State Farm’s cheaper rates and higher ratings make it a slightly better choice than Allstate for homeowners insurance.
That said, Allstate offers some discounts and optional coverages that you can’t get from State Farm.
Allstate
| Pros | Cons |
|---|---|
Home insurance rate is 7% less than the national average Business property coverage available as an add-on Claims satisfaction is close to industry average | Charges slightly more for home insurance than State Farm Overall satisfaction rating is lower than industry average |
State Farm
| Pros | Cons |
|---|---|
Home insurance rates are 12% less than the national average Above-average ratings for overall satisfaction and claims satisfaction Discounts available for impact-resistant roofing | Complaint rating is slightly worse than average Limited discounts and optional coverages |
Is State Farm cheaper than Allstate for homeowners insurance?
State Farm’s average homeowners insurance quotes are 5% cheaper than Allstate’s rates.
State Farm charges an average of $2,427 a year for a typical home, or $202 a month. Allstate’s rate averages $2,560 a year, or $213 a month. Both companies’ rates are cheaper than the national average.
Allstate vs. State Farm home insurance rates
| Company | Annual rate | Monthly average |
|---|---|---|
| State Farm | $2,427 | $202 |
| Allstate | $2,560 | $213 |
| U.S. average | $2,801 | $233 |
Best home insurance customer service: State Farm
State Farm has better customer service ratings than Allstate from J.D. Power and the NAIC.
State Farm beats the industry average for overall customer satisfaction and claims satisfaction from J.D. Power. Allstate’s overall satisfaction rating is low. However, its claims satisfaction rating is only one point below the industry average.
State Farm’s home insurance complaint rating from the NAIC is only slightly worse than average for its size. But it’s still better than Allstate’s rating.
Home insurance rating comparison
| Rating | Allstate | State Farm | Industry average |
|---|---|---|---|
| Overall satisfaction (higher is better) | 809 | 829 | 819 |
| Claims satisfaction (higher is better) | 868 | 873 | 869 |
| Complaint rating (lower is better) | 1.3 | 1.1 | 1.0 |
Sources: J.D. Power, NAIC
Best home insurance discounts: Allstate
Allstate offers more home insurance discounts than State Farm does. These include discounts for having a newer and/or recently purchased home. Allstate also gives special discounts to responsible payers and early shoppers.
Both companies have lower rates for bundling your home and auto insurance. Protective devices such as home security and smoke alarms will also get you additional discounts with either company.
Allstate vs. State Farm homeowner discounts
| Discount | Allstate | State Farm |
|---|---|---|
| Bundling | Yes | Yes |
| Protective devices | Yes | Yes |
| Newer home | Yes | No |
| Recent homebuyer | Yes | No |
| Responsible payer | Yes | No |
| Early signing | Yes | No |
Best home insurance coverages: Allstate
Allstate offers optional home insurance coverages you can’t get from State Farm. These include:
- Business property: This endorsement covers theft or damage to business-related items you may keep in your home. This can come in handy for some home-based businesses.
- Green endorsement: This covers the cost of replacing damaged items with energy-efficient items.
Aside from these, Allstate and State Farm both offer all the normal coverages you need to protect your home and belongings, such as:
- Dwelling coverage for structural damage to your home
- Protection for other structures on your property
- Personal property coverage for theft of or damage to your belongings
- Loss of use for temporary living expenses after a covered disaster
- Coverage for personal liability claims against you
- Medical payments for guests injured in your home
Methodology
The coverages and discounts described in this article are not available in every state.
Rates are based on home and auto insurance quotes for sample customers across the U.S. from Quadrant Information Services.
Unless otherwise noted, our sample driver is a 30-year-old male with a clean driving record and good credit. The sample vehicle is a 2015 Honda Civic EX. Our sample teen is an 18-year-old male with no tickets or accidents.
Liability policies include the minimum car insurance requirements, which vary by state. Full coverage includes:
- Bodily injury liability: $50,000 per person/$100,000 per accident
- Property damage liability: $25,000
- Uninsured/underinsured motorist: $50,000 per person/$100,000 per accident
- Personal injury protection/medical payments: Minimum limits, where required
- Collision: $500 deductible
- Comprehensive: $500 deductible
Sample home insurance policies include:
- Dwelling coverage: $400,000
- Other structures: $40,000
- Loss of use: $80,000
- Personal liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
Rates are shown for comparative purposes only. Yours may vary.
Customer satisfaction and claims satisfaction ratings obtained from:
- J.D. Power 2023 U.S. Auto Insurance Study
- J.D. Power 2023 U.S. Home Insurance Study
- J.D. Power 2023 U.S. Auto Claims Satisfaction Study
- J.D. Power 2024 U.S. Property Claims Satisfaction Study
Complaint ratings are based on confirmed complaints from 2023 reported to the NAIC. A confirmed complaint is one that leads to a finding of fault.