About Allstate And State Farm Car Insurance
About Allstate And State Farm Car Insurance: Many parallels exist between Allstate and State Farm. Both businesses are well-known in the vehicle insurance sector and provide many coverage choices. The cost is the primary distinction between the two well-known suppliers. State Farm ranked highly in our 2023 ranking of the top auto insurance providers thanks to its continuously low rates. The survey placed Allstate 13th, mostly due to its higher-than-average premiums.
To assess each company’s coverage choices, costs, discounts, and customer service, the MarketWatch Guides Team thoroughly examined each one. We’ll provide you with all the information you need to choose between State Farm and Allstate for your auto insurance requirements in this post.
Comparing Allstate and State Farm
Regarding their reputations, several groups have given Allstate and State Farm favorable industry ratings.
| Allstate | State Farm | |
|---|---|---|
| Year Established | 1931 | 1922 |
| AM Best Financial Strength Rating | A+ | A++ |
| Better Business Bureau (BBB) Rating | A+ | A+ |
| J.D. Power 2022 U.S. Insurance Shopping Study℠ Score | 853 out of 1,000 | 877 out of 1,000 |
| Our Award | Best Customer Experience |
About Allstate
Allstate is the fourth-biggest vehicle insurance company in the United States, after State Farm, Geico, and Progressive, according to the National Association of Insurance Commissioners (NAIC). In 2021, the business wrote $27.2 billion in premiums, accounting for 10.4% of the market for auto insurance.
When Allstate was first established in 1931, it sold vehicle insurance via the Sears catalog. While state-specific discounts and additional coverages differ, Allstate insurance products are offered across the country.
About State Farm
According to the NAIC, State Farm wrote over $41.6 billion in vehicle insurance premiums in 2021, accounting for 15.9% of the US market. More than 19,000 State Farm insurance agents work nationwide. The firm no longer offers new plans in Massachusetts or Rhode Island, although its vehicle insurance coverage is still accessible in all states.
About Allstate And State Farm Car Insurance In 2022, State Farm commemorated a century of operations. The organization maintains a stellar reputation in the insurance sector at large and provides most drivers with reasonable prices.
Allstate vs. State Farm: Coverage
Purchasing basic coverage from State Farm and Allstate is simple. These typical insurance packages include comprehensive coverage, uninsured motorist protection, collision coverage, and liability insurance for property damage and personal injury.
Regarding add-on insurance, there are several distinctions between the coverage provided by State Farm and Allstate. For instance, Allstate provides gap insurance, which pays the difference in the case of a total loss between the value of your automobile and what you owe on it. Payoff Protector, a comparable service provided by State Farm, is restricted to clients who have a State Farm Bank loan agreement.
Allstate | State Farm | |
|---|---|---|
| Bodily injury liability (BI) | ✓ | ✓ |
| Property damage liability (PD) | ✓ | ✓ |
| Collision coverage | ✓ | ✓ |
| Comprehensive coverage | ✓ | ✓ |
| Medical payments (MedPay) | ✓ | ✓ |
| Personal injury protection (PIP) | ✓ | ✓ |
| Uninsured/underinsured motorist (UM/UIM) | ✓ | ✓ |
| Roadside assistance | ✓ | ✓ |
| Rental car reimbursement coverage | ✓ | ✓ |
| Rideshare insurance | ✓ | ✓ |
| Accident forgiveness | ✓ | ✓ |
| Mexico and Canada car insurance | ✓ | |
| Trip interruption benefits | ✓ | ✓ |
| Sound system insurance | ✓ |
Allstate vs. State Farm: Usage-Based Insurance
Drivewise is the name of Allstate’s telematics insurance program. Just by downloading the Allstate mobile app and enrolling in the program for free, drivers may access discounts. Drivewise is a crash detection safety function that assists users in calling for assistance after an accident, in addition to recording safe driving behaviors that might result in savings.
Drivewise presents driving difficulties such as limiting your speed to under 80 mph and refraining from abrupt braking for specific durations. 49 states provide Allstate’s usage-based insurance policy; however, certain reductions may not apply to drivers in North Carolina, New York, or Arkansas.
State Farm offers a usage-based program called Drive Safe & SaveTM. Participants in the program receive a discount right away, and by driving safely, they may save as much as 30%. Drive Safe & Save keeps track of your acceleration and cornering speeds as well as how frequently you use the brakes. About Allstate And State Farm Car Insurance We also track the times of day you drive the most and the amount of time you spend using your phone while driving.
Drivers in Rhode Island, Massachusetts, or California cannot utilize Drive Safe & Save. Similar to Allstate’s usage-based program, some Drive Safe & Save savings might not be available to drivers in North Carolina.
Allstate vs. State Farm Pricing
One of the biggest distinctions between State Farm and Allstate coverage is price. We rate State Farm’s cost in our 2023 assessment at 9.3 out of 10.0, whereas Allstate only scores a 7.4. The graph below shows that Allstate’s average yearly rate is far higher than the national average, while State Farm’s is much lower.
*Note: Unless otherwise indicated, all estimates are for full-coverage insurance and are based on a standard profile of a 35-year-old driver with a spotless driving record and a solid credit history.
*The chart’s cost data is based on information from 2022.
Allstate vs. State Farm Cost Estimates
Rates for auto insurance can vary significantly depending on individual criteria like age and driving record; nonetheless, Allstate generally charges higher average rates for a wide range of drivers. Here are a few State Farm and Allstate cost estimates covering various driver characteristics. The quotes shown below are for comprehensive vehicle insurance plans.
| Driving Profile Factor | Allstate Cost Estimate | State Farm Cost Estimate |
|---|---|---|
| Good driver, good credit, age 35 | $2,598 | $1,657 |
| Teen driver (age 16) | $11,263 | $5,514 |
| Has a recent car accident | $4,094 | $1,953 |
| Has a recent speeding ticket (16-20 mph over limit) | $3,012 | $1,872 |
| Has a driving under the influence (DUI) conviction | $3,803 | $2,194 |
Allstate vs. State Farm Discounts
Many of the same savings options, such as discounts for responsible drivers and for combining your vehicle insurance with renters or homeowners insurance, are provided by Allstate and State Farm. But there are also some variations in the discounts that they provide.
About Allstate And State Farm Car Insurance Insurance For instance, State Farm offers a discount for three consecutive years of accident-free driving, but not for paying in full. Customers of State Farm are not eligible for the paperless discount, however, Allstate policyholders are.
Allstate Car Insurance Discounts | State Farm Car Insurance Discounts | |
|---|---|---|
| Multi-policy | ✓ | ✓ |
| Multi-car | ✓ | ✓ |
| Good student | ✓ | ✓ |
| Safe driving | ✓ | ✓ |
| Accident-free | ✓ | |
| Defensive driving | ✓ | |
| Student away at school | ✓ | ✓ |
| Anti-theft device | ✓ | |
| Passive restraint | ✓ | |
| Usage-based | ✓ | ✓ |
| Pay-in-full discount | ✓ |
Allstate vs. State Farm: Customer Experience
In two important studies on vehicle insurance, State Farm comes in highly. State Farm scored 877 out of 1,000 points, the highest ranking among major insurers in the J.D. Power Insurance Shopping Study. With 891 points out of 1,000, the firm ranked third among major insurers in the J.D. Power 2023 U.S. Auto Claims Satisfaction StudyTM.
In the Insurance Shopping Study, Allstate received 853 out of 1,000 points, which was below average. In the Auto Claims Satisfaction Study, Allstate performed significantly better, scoring 882, which was higher than the national average.
Despite having extremely poor customer ratings on the BBB, Allstate and State Farm both have A+ ratings with the organization. It’s crucial to remember that clients are more likely to report bad than good experiences to the Better Business Bureau (BBB), and the insurance sector is accustomed to these poor BBB customer ratings.
Allstate vs. State Farm: The Bottom Line
Allstate | State Farm | |
|---|---|---|
| Overall Rating | 8.8 | 9.4 |
| Reputation | 9.5 | 10 |
| Availability | 10 | 9.8 |
| Coverage | 9.2 | 9.2 |
| Cost | 7.4 | 9.3 |
| Customer Experience | 8.7 | 9.3 |
Other Recommended Car Insurance Providers
Comparing auto insurance quotes from several companies will help you get the best deals. You should consider the following insurance providers in your search.
Geico: Best for Budget-Conscious Drivers
According to the NAIC, Geico is the second-biggest car insurer in the United States. The business has an A++ financial strength rating from AM Best and an A+ rating from the BBB. With a score of 9.8 out of 10.0 for industry repute, Geico likewise has the top ranking. Geico is a wise choice for every kind of driver due to its affordable prices and array of discounts.
Our Methodology
To compile our lists of the top auto insurance providers, we developed a thorough grading methodology since we know that customers depend on us to deliver unbiased and truthful information. To assess the firms according to a variety of criteria, we gathered information on hundreds of vehicle insurance suppliers. Each provider was given an overall rating at the conclusion, and the insurers with the most points were at the top of the list.
The following are the considerations that go into our ratings:
- Cost: Discounts and rate estimations for auto insurance provided by Quadrant Information Services were both taken into account.
- Coverage: Businesses are more likely to satisfy customer demands if they provide a range of options for insurance coverage.
- Reputation and experience: In determining this number, our research team took into account years in the company, market share, and expert ratings from the industry.
- Availability: The top-scoring auto insurance providers in this area were those with higher state availability and fewer qualifying conditions.
- Customer experience: The number of complaints submitted to the NAIC and J.D. Power’s assessments of customer satisfaction are the basis for this score. Based on our study of customers, we also took into account how helpful, polite, and responsive each insurance company’s customer care representatives were.
Our Credentials
- 800 hours of research
- 45 businesses were examined
- More than 8,500 customers were polled.
Frequently Asked Questions: About Allstate And State Farm Car Insurance
What does Allstate Insurance Company do?
Customers in the US and Canada may get car, home, life, and retirement products and services from the Allstate brand’s expanding network of small companies. To better serve its brand-conscious, self-directed consumers, Esurance is growing both geographically and in its exclusive product lines.
Who owns Allstate now?
Since Allstate is a publicly listed corporation, its owners are the firm’s shareholders. According to public data as of Q1 2020, the largest shareholders are BlackRock, The Vanguard Group, and State Street Corporation, with a combined ownership position of about 20%.
Who is Allstate’s biggest competitor?
Progressive Insurance, Travelers, Liberty Mutual Insurance, State Farm Insurance, and Farmers Insurance are some of Allstate’s rivals. Comparably, Allstate is ranked third among its competitors in terms of CEO Score.
Who normally has the cheapest car insurance?
For complete coverage, State Farm offers insurance at the lowest cost among 24 states’ major providers. Almost usually, USAA offers the most affordable auto insurance in every state.
Who is the #1 insurance company in the USA?
With an 18% market share, State Farm is the biggest vehicle insurance provider in the United States. Other major auto insurers are Allstate, Progressive, and Geico.
Do you still have questions?
If you have any questions that aren’t addressed in our FAQ, please email us and we will get back to you as soon as we can.
