What Is Better for Car Insurance – USAA or Allstate?

Last Updated on June 6, 2021

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.

usaa vs. allstate car insurance

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

Now you need to compare the variables, which include how both companies view driving record, credit history, and the other factors used to determine how much you pay for auto insurance.

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

If you have tickets, infractions, or an accident you caused on your driving record, it will impact how much you pay for insurance.

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.

When it comes to a DUI, reckless driving, and speeding, you will still pay less with USAA.

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, USAA or Allstate?

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.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
Back to Top