Allstate vs. State Farm: Compare insurance companies in 2024

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Our recommendation: Allstate vs. State Farm: Which is better?

Allstate and State Farm are large insurance companies with robust financial stability. Both have a lot to offer drivers. But the right choice varies based on your situation. 

If you are looking for affordable rates, State Farm tends to offer lower rates than Allstate. Beyond lower rates, State Farm’s high customer satisfaction rating makes it an easy choice for drivers looking for helpful support when they need it. Currently, State Farm isn’t writing new auto insurance policies in Rhode Island or Massachusetts. 

In contrast, Allstate is available in every state. While the insurer is known for efficiently handling claims, the higher rates might make it the wrong fit for your budget. 

Rating comparison for Allstate vs. State Farm car insurance

State Farm stands out for offering a supportive customer service experience. The insurer also boasts top-notch financial stability and generally lower rates than Allstate. But since Allstate is the insurer available in every single state, it is a better fit for some drivers. 

The table below offers more insight into how these two insurance companies stack up against each other. Please note that numerical ratings are on a scale of 0-5 with 5 being the highest possible score.

Allstate vs. State Farm: Pros and cons

Every insurance company has advantages and disadvantages. Below is a closer look at the pros and cons to consider with Allstate and State Farm. 

Allstate vs. State Farm: Which provides the cheapest car insurance rates?

In general, State Farm offers cheaper rates than Allstate. For example, the average annual cost of a state minimum coverage policy is $502 with State Farm and $700 from Allstate. For full coverage, the annual rate at Allstate is more than $500 higher.

The table below highlights the average costs of different policy levels for each company. Liability-only indicates higher than state minimum coverage limits of 50/100/50.

Allstate vs. State Farm: Car insurance rates by age and gender

State Farm is cheaper for drivers of all age groups. For example, female drivers ages 20 to 24 pay an average annual rate of $2,956 with State Farm. But Allstate drivers in the same age group pay an average of $3,601 annually. 

In addition to your age, your gender can have a big impact on your car insurance costs. Generally, men pay more for car insurance than their female counterparts. The table below illustrates how different age groups can expect different rates across both companies. 

Allstate vs. State Farm: Rates by credit score

Drivers with good credit scores often pay less for insurance than drivers with poor credit scores. That trend holds true with both Allstate and State Farm. 

Notably, drivers with bad credit tend to pay significantly more with State Farm than Allstate – more than double. On average, drivers with poor credit pay an average annual rate of $4,176 with Allstate. That’s significantly less than State Farm’s average rate of $8,616. 

The table below highlights how average rates vary by credit score at State Farm and Allstate. 

Allstate vs. State Farm: Rates for different violations

When it comes to getting a good car insurance rate, maintaining a clean driving record is critical. If you receive a moving violation, that tends to drive your car insurance costs higher. 

“High-risk behaviors such as speeding, driving under the influence (DUI/DWI), and at-fault accidents typically lead to higher premiums,” says John Crist, founder of Prestizia Insurance. 

The table below shows how a violation can raise average rates at each insurer. However, the impact of a violation varies by insurer. 

Allstate vs. State Farm: Customer satisfaction comparison

When it comes to customer satisfaction, State Farm boasts a survey score of 84% of customers saying they are satisfied. Allstate’s survey score is 75%, nine points lower than State Farm’s score.

Allstate vs. State Farm: Car insurance discount availability comparison

Both Allstate and State Farm offer a wide range of discounts for drivers. Of course, the type of discounts you qualify for will vary based on your unique situation. For example, homeowners can tap into a discount with Allstate or State Farm. 

The table below highlights the different discounts you can expect to find with each company.

Allstate vs. State Farm: Additional insurance availability comparison

As major insurance companies, Allstate and State Farm each offer a wide range of insurance products. You can find a breakdown of which other policy types this company offers in the table below. 

Resources & Methodology

Methodology

Insure.com in the fall of 2023 surveyed more than 1,750 insurance consumers (1,459 people with auto insurance). Online market research company Slice MR conducted the survey. Respondents were asked to name their auto insurer and then grade it in the following categories – customer satisfaction, ease of service and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

Respondents were then asked to pick their insurer’s top three attributes out of more than a dozen presented – trustworthiness, claims satisfaction, digital experience, discounts and best for auto/home bundling. The responses for each attribute were totaled and then divided by the number of each company’s customers who responded to that survey question to create a percentage. 

Respondents were then asked if they would recommend their auto insurer to someone else and whether they would renew with their company. The percentage who said yes is presented in the results.

Finally, respondents were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation. 

They then collected AM Best data, which measures financial strength, and National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The Insure.com team identified the NAIC company code or codes that were the primary underwriting companies for each carrier and line of business using total annual premiums. The associated NAIC complaint index score was used in the calculations. If more than one underwriting company was identified for a line, the editors used a weighted average of the NAIC complaint index scores.

In addition, we also created star rankings for each company. Respondents were asked to pick their insurer’s top three attributes out of the more than the dozen presented, again including customer satisfaction and policy offerings. The number of responses for each attribute was totaled and then divided by the number of each company’s customers who responded to that survey question to create the star ranking. 

The editors also collected insurance rate data from Quadrant Information Services.

With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For auto insurers, we took the following and gave each a weight.

• Survey: 40% of the total score (10% customer satisfaction, 10% recommended, 10% renewal rate and 10% claims handling)
• Annual premium: 20% of the total score
• AM Best: 25% of the total score
• NAIC: 15% of the total score

Each insurer was awarded from half a star to 5 stars. No insurer in our star ranking received less than half a star and 5 stars was the most any insurer could receive.

Sarah Sharkey

Contributing Researcher

 

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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.