What Is Better for Car Insurance – USAA or Allstate?
Last Updated on April 1, 2020
USAA and Allstate are both significant players in the insurance industry. Both are military friendly, and they give unique perks that consumers can take advantage of when they use them for coverage. As two of the most popular insurers out there, you might find yourself comparing the two to see which is best for you when you need new insurance.
It is important to consider the main factors, including cost, how your insurance is priced, available discounts, and eligibility.
Qualifying for Insurance – USAA is Not for Everyone
USAA insurance does not apply to everyone. Instead, you must be an active military member or retired member of the military, and you will need a DD-214 to prove your service. Family members of a military member do qualify, including spouses, children, grandchildren, and stepchildren.
Allstate doesn’t require that you are an active member of the military to get their insurance program, but if you want military discounts, you will need a DD-214.
Comparing the Variables between USAA and Allstate
Factor 1: Credit Score
Your credit score influences your insurance premiums because insurers assume that those with poor credit are a higher risk for accidents.
If your credit score is good, ranging between 670 and 739, then USAA is much cheaper – almost 50 percent more affordable – than Allstate.
All around, USAA forgives credit issues more and rewards those with good credit by giving them lower premiums. Those with scores over 800 can average under $1,000 per year for their insurance with USAA, while Allstate was consistently higher regardless of credit score.
Factor 2: Driving Record and Bad Drivers
USAA is the better choice if you have infractions on your driving record, and they tend to forgive more than Allstate. Even if you were at-fault for an accident over $1,000 in damage, you pay considerably less with USAA than Allstate.
Factor 3: Age and Rates
Age also affects your insurance rates. When you are younger, insurers assume you are less experienced and more likely to experience accidents. Typically, rates get affordable when you are over the age of 25. Regardless, USAA still comes out ahead on all age brackets – even teen drivers. Allstate charges almost three times the rate of USAA for teen drivers. When it comes to every other age group, USAA is considerably cheaper, and even for those over 60, it is a savings of almost 50%.
What About Discount Opportunities
USAA does have more discounts available to their policyholders, but that is because they are dealing with the retired and active military; which means they offer more discounts for those serving their country than Allstate.
One attractive discount USAA doesn’t offer is ABS brake systems, while Allstate does. Also, Allstate will give you a discount for an energy-efficient vehicle, while USAA does not.
How Do They Compare in Customer Satisfaction?
This is where USAA pushes out further ahead than the competition. USAA has an A++ user rating, and JD Power Rankings give them five stars. Allstate has only 3 out of 5 stars from JD Power Rankings, and they have an A+ from user satisfaction ratings.
USAA online has numerous positive reviews, and they are straightforward to work with when it comes to filing a claim or having an issue. The company is generous to its policyholders, and they have fewer complaints about claims processing – in fact, they have one of the fastest claims processing out there.
USAA offers roadside assistance in all programs, while you can only get the Allstate version under specific policy add-ons. USAA also provides up to $300 for accommodations if you are stranded away from home and have to stay overnight while waiting for your vehicle repairs, while Allstate doesn’t have that program.
USAA gives you extra discounts including daytime running lights, legacy discounts for those with families who have been with USAA for years, and also cheaper costs to insure stored vehicles – while you are away on deployment.
Who Wins in the End?
It is up to you which insurer works best. If you are active military or retired, you may find better rates and customer service with USAA. However, if you want to add members of your family to your policy that would not qualify under USAA, Allstate is a viable option.