Along with GEICO and Progressive, Allstate vs. State Farm represents two of the four largest United States auto insurers. The NerdWallet finance blog reports data from the National Association of Insurance Commissioners indicating that these four firms had half of the total U.S. personal auto policy market share in 2019. All four earn high ratings for customer service, financial strength, longevity, and brand reputation. Here’s what you should know when choosing between State Farm and Allstate for auto insurance.
Average Coverage Price
NerdWallet looked at national average full coverage quotes for a 40-year-old driver with no accidents or claims and good credit. State Farm would charge this driver about $1511 per year, compared to about $1834 per year for a comparable Allstate customer. The blog breaks down the averages further based on driver characteristics as follows:
- State Farm charges $624 for a minimum policy compared to $784 with Allstate.
- State Farm charges $1968 for a driver with a recent at-fault collision claim compared to $2904 for a policy from Allstate.
- Allstate charges $2904 for drivers with poor credit and good driving history, compared to $3144 from State Farm.
- For a good driver who also has a good credit score, State Farm charges $1511 compared to $1834 from Allstate.
Allstate customers can access discounts if they are retired, older than 65, or drive a farm or utility vehicle. State Farm provides discounts for customers who drive a vehicle made before 1994 depending on its value.
According to U.S. News and World Report, Allstate offers some of the highest prices in the auto insurance industry. Possibly as a result, the company’s market share has declined in recent years. The magazine reports a national average auto policy cost of $1416. Customers can potentially save about 34 percent by choosing State Farm, while the average Allstate policy costs about 33 percent more than the national average premium.
Smart Financial reports that State Farm provides a significant discount for multiple vehicle policies compared to Allstate. A policy for three vehicles costs $320.83 each while Allstate customers would pay about $473.08 for comparable coverage.
Customer Complaints
NAIC also reviewed customer complaints for each of the big four. State Farm had about the average number of complaints for an auto insurance provider, while Allstate had fewer than average complaints based on its size. However, State Farm ranked higher than Allstate in 2019 customer satisfaction surveys from J.D. Power and Associates.
Optional Coverage Needs
Allstate offers seven of nine optional types of auto insurance coverage according to the NerdWallet review. Allstate offers new-car replacement if you total your vehicle and accident forgiveness if you do have a claim; neither of these features is available from State Farm.
Both Allstate and State Farm offer optional roadside assistance programs for customers. With Emergency Road Service from State Farm, you can access locksmith assistance, jump starts, tire changes, oil or gas delivery, towing, and mechanic assistance at the breakdown site. Allstate has a 24/7 Roadside Network that allows you to pay for service when you need it. Services include locksmithing, fuel delivery, jump starts, and tire changes for about $84 and $99 for towing. If you prefer prepaid service, you can opt for Towing and Labor Coverage or the Allstate Motor Club.
Cost by Credit Rating
The website The Zebra reports that Allstate usually offers more affordable coverage for drivers who have less-than-perfect credit than the rates available from State Farm for similar drivers. If you have an outstanding credit score, you can probably save by going with the latter company. Here’s the average price breakdown by credit rating:
- 800 to 850 credit score: $1743 per year from Allstate, $1260 from State Farm
- 740 to 799 credit score: $1820 per year from Allstate, $1451 from State Farm
- 739 to 670 credit score: $2021 per year from Allstate, $1613 per year from State Farm
- 669 to 580 credit score: $2162 per year from Allstate, $2003 per year from State Farm
- 300 to 579 credit score: $3117 per year from Allstate, $3552 per year from State Farm
Cost for Drivers Who Have Claims and Accidents
The Zebra reports that State Farm generally offers better rates than Allstate for drivers who have a history of driving under the influence, reckless driving, speeding tickets, and/or at-fault claims. The average annual rates for these violations are as follows:
- $1983 from State Farm and $2256 from Allstate with a speeding ticket
- $2895 from State Farm and $3388 from Allstate with a reckless driving ticket
- $3854 from State Farm and $3637 from Allstate with a DUI
- $2849 from State Farm and $3006 from Allstate with an at-fault accident with damages exceeding $1000
Cost for Teen Drivers
The Zebra also notes that State Farm usually offers better rates for teen drivers than Allstate does. This age group often struggles to find affordable insurance because of their higher risk of accidents. The website reports these average annual premium rates by age from each company:
- Teen drivers: $5820 State Farm, $6442 Allstate
- Twenty-something drivers: $2379 State Farm, $2636 Allstate
- Thirty-something drivers: $1585 State Farm, $2636 Allstate
- Forty-something drivers: $1587 State Farm, $1912 Allstate
- Fifty-something drivers: $1555 State Farm, $1893 Allstate
- Sixty-something drivers: $1485 State Farm, $1768 Allstate
Key Benefits of State Farm
According to ValuePenguin, State Farm has millions of U.S. customers and ranks as the nation’s largest auto insurance company. While it has higher premiums than many other car insurers, some of the advantages of choosing State Farm include:
- A streamlined, user-friendly website
- A diverse range of customizable coverage options
- A strong network of more than 18,000 agents who service local communities
- Best overall customer experience
Notable Advantages of Allstate
ValuePenguin lists Allstate as the third largest auto insurance company. Some of the customer benefits of buying an auto policy with this insurer include:
- Excellent claims handling process
- Significant opportunities to earn coverage discounts
- Availability both online and through local agencies
Reviewing this guide can help you make the final decision if you’ve narrowed down your auto insurance policy options to either State Farm or Allstate.
Sources:
https://www.nerdwallet.com/blog/insurance/allstate-geico-progressive-state-farm-comparison/
https://www.valuepenguin.com/state-farm-vs-geico-vs-allstate-vs-progressive-vs-farmers-car-insurance
https://www.thezebra.com/insurance-companies/state-farm-vs-allstate/
https://cars.usnews.com/cars-trucks/car-insurance/allstate-vs-state-farm
https://smartfinancial.com/compare-companies/state-farm-vs-allstate-insurance
https://www.caranddriver.com/insurance/
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