State Farm vs. Allstate: Which should you choose for home insurance in 2024?

State Farm and Allstate have high customer satisfaction scores and competitive annual rates, and both ranked well on the Insure.com Best Insurance Companies of 2024 list. Insure.com has summarized all the pros and cons so you can compare State Farm vs. Allstate and find the best fit for your home insurance needs.

State Farm offers low rates for people with excellent credit scores and a wide array of policy offerings. Its highest possible AM Best score is A++, which means it is very likely to meet its financial obligations.

Allstate has the lowest rates of the two on average, especially for people with fair to poor credit scores. It scored well for claims handling and offers the most discounts out of the two carriers in this side-by-side comparison.

Insure.com compares: State Farm vs. Allstate: Which is better for you?

We’ve compiled data on State Farm and Allstate to help you compare these two companies side by side. Based on a survey of Insure.com’s customers as well as third-party ratings from agencies like AM Best and the National Association of Insurance Commissioners (NAIC), you can see how State Farm and Allstate stack up to help you decide.

These companies are closely matched, so which is better for you may come down to the cost. Allstate has lower rates on average, and that difference is even more notable for homeowners in lower credit tiers; if that’s you, Allstate is likely a great pick.

State Farm edges out Allstate for customer satisfaction and financial stability; if those things outweigh the price difference for you, State Farm is your best bet.

Insure.com comparison of State Farm vs. Allstate

The table below summarizes State Farm and Allstate so you can compare them at a glance. Both companies have high overall ratings with insure.com and comparable customer satisfaction ratings. 

State Farm and Allstate both have superior AM Best scores, which indicate financial solvency and a superior ability to meet financial obligations such as paying out claims. State Farm has a slightly higher NAIC rating, which means more complaints have been lodged against it. Allstate’s lower score means fewer complaints.

Both companies have competitive national rates, with Allstate offering the cheapest at $2,098 annually. State Farm’s average home insurance policy costs $2,169 annually.

*Allstate and State Farm are not currently writing new home insurance policies in California.

State Farm vs. Allstate: Home insurance overview

The table below shows how each carrier scored in all major categories. State Farm scored slightly higher overall except in two categories: rates and claims handling. Allstate has slightly cheaper rates and customers like how they handle their claims a bit better. Percentages indicate the number of each company’s customers who indicated they were satisfied in that area.

State Farm vs. Allstate: Pros and cons

To help you compare, we’ve summarized the pros and cons of each company based on the data and our customer survey.

State Farm vs. Allstate: Which has the cheapest home insurance rates?

The table below shows the rates for different coverage levels for State Farm and Allstate. State Farm initially starts out cheaper, but as coverage levels increase, Allstate wins in this category for cheapest overall rates.

State Farm vs. Allstate: Rates by coverage level

State Farm vs. Allstate: Rates by credit history

Insure.com compiled rates for different credit scores in the table below; in most states, credit is a factor in determining rates. Allstate has the overall cheapest rates. State Farm is cheaper for people with excellent credit, but Allstate has the cheapest rates for all other credit categories.

State Farm vs. Allstate: Customer satisfaction

According to the survey, 85% of State Farm customers report being satisfied. They beat Allstate by a couple of percentage points in this category.

State Farm vs. Allstate: Discounts

The table below shows that Allstate has the most overall discounts available to customers. 

Which has a bigger auto and home discount?

Bundling auto and home insurance together in one policy will earn you a discount with both companies. You’ll see from the table below that State Farm gives a 24% discount for auto and home bundling and Allstate gives a 16% discount.

State Farm vs. Allstate: Claims processing

Allstate scored higher in this category, with 83% of customers surveyed saying they were satisfied with how their claims were handled.

The bottom line: State Farm vs. Allstate

State Farm and Allstate are two solid, financially stable companies with high customer satisfaction ratings. There are subtle differences that might factor into your decision. State Farm has slightly higher overall customer satisfaction scores and an A++ AM Best rating. State Farm also has the lowest prices for people with excellent credit scores.

Allstate has the lowest overall rates and scored higher for claims handling. The NAIC gave Allstate a slightly lower complaint score. Allstate also offers the most discounts.

Comparing carriers and shopping around is the best way to get the best rates and find a carrier that best fits your needs.

Methodology

Insure.com in the fall of 2023 surveyed more than 1,750 insurance consumers (1,151 people with home insurance). The survey was conducted by online market research company Slice MR.

Respondents were asked to name their home insurer and then grade it in the following categories: customer satisfaction, ease of service, claims satisfaction 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 – including digital experience, discounts best for auto/home bundling and best for discounts. The number of responses for each attribute were totaled before dividing 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 home insurer to someone else and if they planned to renew their policies. 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.

They 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 home 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)

• AM Best: 25% of total score
• Annual premium: 20% of total score
• NAIC: 15% of total score

Each insurer was awarded between half a star and 5 stars. No company in the ranking received less than half a star in any category, and 5 stars was the most any insurer could receive.

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