Allstate and State Farm are well-known car insurance companies in the United States. Each of them insures millions of people across the country. In addition to auto insurance, you can also get a variety of other policies, such as home, renters, business, pets, and life insurance.
State Farm and Allstate are some of the best insurance companies, but they each have their unique characteristics. In this article, we’ll review both carriers comprehensively, highlighting everything you need to know about them.
About Allstate Insurance
The Allstate Corporation protects people against life’s uncertainties with more than 113 million exclusive policies. They offer a wide range of protection products across multiple brands and various distribution channels, including auto, home, life, and other insurance offered through its Allstate, Esurance, Encompass, SquareTrade and Answer Financial brands.
Since its inception in 1931, Allstate has been a pioneer in the insurance industry. Americans have relied on Allstate to help protect their families and assets for more than 80 years.
Based in Northbrook, Illinois, Allstate is the nation’s largest publicly traded personal lines insurer. Its officers, employees, and agency owners are an integral part of Allstate’s heritage.
About State Farm Insurance
State Farm was founded in June 1922 as a mutual auto insurance company owned by its policyholders by retired farmer George J. Mecherle. Farmer auto insurance was the company’s specialty, but it later expanded its services to include other types of insurance, such as home and life insurance, as well as banking and financial services.
State Farm is the largest property and casualty insurance company in the United States, as well as the largest automobile insurance company. In the 2019 Fortune 500, which ranks U.S. companies by revenue, State Farm is ranked 36th.
Exclusive agents (also called captive agents) are used by State Farm to sell insurance. Only State Farm agents may sell State Farm insurance, and only State Farm products may be sold by their agents.
Allstate Vs State Farm Insurance: Pros and Cons
State Farm and Allstate are two of the best insurance companies, but they each have their pros and cons. We compared the two carriers and found that Allstate is the better option overall. Allstate offers more policy options and discounts than State Farm. State Farm, on the other hand, has a much larger agent network, which is advantageous if you prefer to work with a live agent.
Advantages and Disadvantages of Allstate Insurance
Here is an overview of the main advantages and disadvantages of Allstate Insurance:
- Allstate offers a wide variety of endorsements for most policies, including commercial insurance.
- They have great discounts for home insurance
- Useful online tools, resources, and calculators
- Only offers insurance discounts to two renters
- Fewer agents than State Farm, with a network of around 10,800
- Does not sell individual health or disability insurance
Advantages and Disadvantages of State Farm Insurance
- Customer satisfaction and financial strength ratings are well above average.
- State Farm agents are readily available nationwide.
- They have a diverse range of customizable coverage options.
- Auto insurance rates are lower than the industry average.
- Customers can access services – including quotes, paying bills, and filing complaints – through a user-friendly mobile app and website.
- Home insurance premiums can be higher than the industry average.
- State Farm does not always offer specialized protection for auto insurance customers with unique coverage needs.
- Customers can only access products and services directly from the company or through its network of agents.
State Farm vs. Allstate: Coverage Options
Standard coverages such as liability, personal injury or medical payment protection, comprehensive coverage, and collision coverage are available from all car insurance companies. Both State Farm and Allstate offer basic coverage plus a few extras, but Allstate comes out on top with a wider range of coverage options.
Both auto insurance companies offer ride-sharing insurance, roadside assistance, and rental car reimbursement. Allstate, for its part, offers coverage options such as new car replacement, deficiency insurance, audio system coverage, portable electronics and media coverage, custom parts coverage, and a change in deductible. For drivers with high deductibles, new cars financed, upgraded electronics, or custom parts installed, these extra features may be worth the extra cost.
Allstate vs. State Farm: Get a Quote
Obtaining quotes is an important part of the process when comparing insurance providers. Fortunately, both State Farm and Allstate offer online quotes for the majority of the insurance products they sell. If you prefer, you can get a quote by calling an agent.
To get a quote from both companies, all you need to do is provide information about yourself, such as your date of birth, social security number, and address, as well as specific information about the policy you’re buying.
Since Allstate and State Farm both work with independent agents, you must work with an agent. If you don’t establish a rapport with the first agent you speak with, you might consider finding another one in your area.
The process should only take a few minutes whether you get a quote online or over the phone. And, if you get a quote online, you can save it and come back to it later, so there’s no pressure to buy a policy right away.
Allstate Insurance Vs State Farm Insurance: Rates and Discounts
Commercial insurance policies are based on factors unique to your business, including the number of employees you have, the risk your employees face, and where your business operates. Based on our findings, Allstate and State Farm do not offer any discounts for commercial insurance. However, you may be eligible for a multi-policy discount if you purchase two or more professional insurance policies from the same company.
State Farm vs. Allstate: Which is better for discounts?
Most insurance companies offer the same discounts for car safety features, safe driving habits, and fully paid premiums. However, what makes the difference in your car insurance premium is not the number of discounts, but the absolute cost of the quoted coverage. Does this seem surprising to you? I hope not.
Typically, the two largest discounts offered are bundled auto and home discounts and usage-based programs, which look at your driving habits and mileage. State Farm offers one of the highest discounts for home and auto insurance bundling at 25%, which puts it at the top of this category. Allstate’s multi-policy discount is 17%, which puts it in the national average of bundled discounts for major insurers. If you own a house and a car, it almost always makes sense to combine the two to get the biggest discount available.
All States DRIVE programs based on judicious use can lead to 40% or more in savings. It monitors speed, braking habits, and the time you drive to check for potential reductions to make smart driving choices. They also have a mileage program called By the Mile, which provides car insurance rates based on miles driven.
State Farm Drive Safely and Save The program tracks driving habits and mileage and can generate up to 50% savings.
Allstate v. State Farm: Claims
State Farm and Allstate have online and mobile claims systems, but only for auto, home, and renters insurance claims, as well as windshield repair claims. If you need to file a claim for any other type of policy, you must call the company directly.
Whether you choose to file your claim online or by phone, you will be asked to provide your policy number, then give a description of the claim and submit photos if you have proof of damage. Additionally, you will be assigned a claims adjuster who will contact you and explain the claims process and what your policy will cover.
State Farm and Allstate offer several options to users. They also have mobile apps with similar options that lead the way in ease and accessibility. Still, if you’re looking for an insurance company with broader coverage options, Allstate comes first.
State Farm has the most affordable coverage, but Allstate has better customer service and more unique coverages. For drivers with bad credit and young drivers, Allstate has lower rates, while State Farm is better for those with traffic violations. Allstate offers coverage that State Farm does not, such as custom parts and electronic equipment coverage for car owners who choose to modify their vehicles.
To get started with either, we recommend speaking with each of the company’s agents or simply visiting their website for more details.