What’s Better for Car Insurance – Allstate or State Farm?

Last Updated on December 17, 2025

Allstate and State Farm are two of the biggest names in auto insurance. They both sell the same core coverages (liability, collision, comprehensive), both operate nationwide, and both can be competitively priced—depending on your state, driving record, vehicle, and discount eligibility.

So which is better for car insurance: Allstate or State Farm? Below is a practical, side-by-side guide to help you choose based on what actually moves the needle: rates, discounts, coverage options, claims experience, and who each company tends to fit best.

Key Takeaways

• There’s no universal winner: Allstate or State Farm can be cheaper depending on your state, driving record, vehicle, mileage, and discount eligibility.
• State Farm is often a strong choice if you want a large local-agent network, teen/young-driver savings, and its Drive Safe & Save telematics discount.
• Allstate is often appealing if you want add-on perks like accident forgiveness (where available) or pay-per-mile options for low-mileage drivers.
• The best way to decide is to quote both companies with identical coverages and compare total cost, discounts you’ll keep long-term, and claims experience signals.

Allstate vs. State Farm: Quick Verdict

• Choose State Farm if you want a large local-agent network, strong teen/young-driver programs, and a widely available telematics discount (Drive Safe & Save) that can lower your rate based on how (and how much) you drive.
• Choose Allstate if you like “package” style perks (like accident forgiveness in eligible states), want pay-per-mile options for low-mileage driving, or prefer a broader menu of add-ons such as new-car protections.
• Best practice: compare quotes from both for the same coverage limits. One may be clearly cheaper for your profile—even if a friend had the opposite experience.

Why Compare Allstate and State Farm?

There are plenty of insurers worth considering, but Allstate and State Farm are household names, widely available, and both can be strong options in the right situation. If you’re still building a shortlist, start with a broader overview like our list of the best auto insurance companies in America.

Allstate vs. State Farm Comparison Chart

About State Farm

State Farm is one of the largest auto insurers in the U.S. and sells policies nationwide. It’s structured as a mutual insurance company (owned by policyholders), and it’s especially well known for its extensive network of local agents.

Because pricing and underwriting rules vary a lot by location, State Farm can be a standout value in one state and merely average in another. If you want a sense of how much rates can change by location, check our overview of insurance rates by state.

If you’re comparing State Farm against other big-name competitors, this explainer may help: which is better, GEICO or State Farm?

State Farm Discounts to Know

State Farm’s discounts vary by state, but these are some of the most commonly used ways to save. Here’s a deeper list of State Farm auto insurance discounts if you want to see everything in one place.

• Drive Safe & Save: State Farm’s usage-based discount that can reduce your premium based on driving behavior and mileage. If you’re wondering whether telematics is a fit for you, see: is usage-based car insurance right for you? You can also read our program-specific breakdown: is Drive Safe & Save worth it?
• Good student savings: Many students can qualify with strong grades. If you’re shopping for younger drivers, start here: cheap car insurance for high school students and cheapest insurers for college students.
• Multi-car discount: Often available when you insure two cars on one policy.

About Allstate

Allstate is another major national insurer with a long history in the auto insurance market. Unlike State Farm, Allstate is a publicly traded company. Allstate also sells a wide range of optional coverages and “bundled” features that can be attractive if you like add-ons and perks.

Allstate Discounts and Perks to Know

Allstate offers a variety of discounts depending on your state and policy details. If you want the full list, start here: Allstate auto insurance discounts.

Accident forgiveness: Allstate is well known for accident forgiveness options in eligible states. This can help soften the financial blow of a first accident—but it doesn’t replace safe driving and it won’t protect you from every scenario. For context on how accidents typically affect premiums, see: does car insurance go up after an accident?

Other common Allstate savings opportunities

• Safe driver savings: Keeping a clean record matters with virtually every insurer. Here’s how insurers tend to treat your history: how driving history affects insurance rates.
• Good student discounts: Similar to State Farm, Allstate often provides savings for students and younger drivers. If you’re price shopping for young drivers, this guide is a good starting point: cheapest car insurance for young drivers.
• Drivewise: Allstate’s telematics-based program that can offer discounts in many states if you enroll and drive safely. Learn more here: does Drivewise really save you money?

Allstate vs. State Farm: Rates and Who Tends to Be Cheaper

There isn’t a universal winner on price. In real life, the cheaper option often flips based on:

• Your state (and sometimes your ZIP code)
• Your driving record and claims history
• Your vehicle (trim level, repair costs, safety features)
• Mileage and commuting patterns
• Credit-based insurance factors (where allowed)
• Discounts you actually qualify for (and will keep)

If you have a tougher record, pricing can be especially sensitive. Start here if that’s you: car insurance for bad driving records.

And if you’re shopping for teen drivers specifically, your “winner” may look different than an adult-only household—see: cheapest car insurance for teens.

Coverage Options and Add-Ons

Both insurers offer the standard building blocks of car insurance. Where you’ll notice differences is in the optional coverages and “extras” bundled into certain packages. When comparing quotes, pay attention to:

• Rental reimbursement (coverage while your car is in the shop)
• Roadside assistance (towing, lockouts, jump starts)
• Gap/loan-lease payoff (especially important for newer financed cars)
• Rideshare coverage (if you drive for Uber/Lyft)

Roadside assistance is a common tie-breaker for many drivers. If you’re considering it, compare these two add-ons directly: Allstate roadside assistance vs. State Farm roadside assistance.

Customer Satisfaction and Claims Experience

Claims is where an insurance company “earns” your premium—especially after a crash. The best way to compare claims experience is to look at consistent, third-party research and then sanity-check it with real-world feedback from local agents and repair shops in your area.

One place many drivers start is J.D. Power’s industry studies, which measure satisfaction across categories and regions. Here’s a current reference point: J.D. Power’s U.S. Auto Claims Satisfaction Study.

Important: scores and rankings can vary by region and by year, so use them as one signal—not the only signal.

FAQs on Allstate vs. State Farm

So… Which Is Better: Allstate or State Farm?

State Farm is often a great fit if you value a strong agent relationship, you’re insuring a family (especially with teen drivers), or you want a widely available telematics discount option.

Allstate can be a great fit if you want optional protections like accident forgiveness (where available), you’re interested in pay-per-mile style pricing, or you like policies with extra “new car” style features and add-ons.

The simplest way to choose: request quotes from both for the same limits and deductibles, compare the final price, then compare the extras you’re actually paying for. A slightly higher premium can be worth it if it buys meaningfully better coverage or a smoother claims experience for your needs.