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

Last Updated on September 11, 2022

Allstate and State Farm are two of the most popular car insurance companies in the United States. Both offer similar car insurance rates in most states – but which one is best for you?

Today, we’re helping you decide whether you should buy car insurance from Allstate or State Farm.

Why Allstate and State Farm?

Allstate vs. State FarmThere are dozens of major nationwide car insurance companies in the United States. Why are we focusing on two of those companies – Allstate and State Farm?

Well, Allstate and State Farm are two of the largest car insurance companies in the United States. They both offer similar insurance products and have similar brand recognition across the United States.

Nevertheless, there are differences between State Farm and Allstate, and those differences could affect your decision to purchase car insurance. It’s important to note that State Farm is America’s largest auto insurance company, for example, and is nearly twice as large as Allstate.

Let’s dive into a comparison between the two auto insurance giants.

About State Farm

State Farm is the largest car insurance company in the United States. With nearly twice the customer base of Allstate, State Farm is available in all 50 states across the country.

One of the first notable things about State Farm is that it continues to be a privately-held company to this day. State Farm, unlike other insurance companies in the United States, is not traded on the stock market. It is also not a mutual company – unlike some insurance companies, they’re not owned by customers.

State Farm’s status as a privately held company is unlikely to impact car insurance quotes. 85% of State Farm customers would recommend the company to others, and 93% of customers plan to renew their existing policy.

State Farm Discounts

State Farm offers a range of auto insurance discounts, including all of the following:

Drive Safe and Save Discount: If you use a telematics device to track your driving activity, you can get a discount of up to 50% by enrolling in State Farm’s Drive Safe and Save program.

Good Student Discount: High school and college students maintaining a strong average (say, A- or higher) may be eligible for a discount of up to 25%.

Multi-Car Discount: If you plan to insure multiple cars under the same auto insurance policy, then State Farm might give you a discount of 20%.

About Allstate

Allstate is also an auto insurance giant in the United States. Available in all 50 states, Allstate is the third-largest car insurance company in the country. Allstate, unlike State Farm, is a publicly traded company. You can buy the company’s stock from the stock market, and Allstate’s corporate decision-making is driven by what shareholders want.

Allstate customers tend to have slightly lower satisfaction than State Farm customers. 73% of Allstate customers would recommend the company, for example, and 89% plan on renewing their existing Allstate policy.

Allstate Discounts

Allstate has one of America’s best car insurance discounts: the company is known for its accident forgiveness program. Thanks to this program, your rates may not substantially increase after a single accident – assuming the accident was minor and you have an otherwise clean driving record.

Of course, this accident forgiveness system may cause drivers with clean records to pay more for car insurance. That’s why, as with any car insurance company, it’s important to compare quotes from Allstate and State Farm to see which one matches your budget and needs best.

Other Allstate discounts include:

Safe Driver Discounts: Save up to 45% by maintaining a clean driving history for several years in a row.

Safety Feature Discounts: Allstate offers a discount for passive restraint safety features like airbags, helping you save up to 30% on the price of car insurance.

Good Student Discounts: Get a discount of up to 20% for maintaining good grades as a young driver.

DriveWise Discount: Similar to State Farm’s Drive Safe and Save program, Allstate’s DriveWise offers discounts to drivers that install a telematics program to track their driver habits.

Allstate vs. State Farm: Other Differences and Similarities to Consider

Here are some of the other factors to consider when deciding to buy car insurance from Allstate or State Farm:

  • Allstate and State Farm both have an identical “Good” rating of “B” from the Better Business Bureau.
  • Allstate’s roadside assistance program and State Farm’s roadside assistance program both score highly and are very affordable policy add-ons.
  • Allstate’s Easy Pay Plan discount is unmatched by State Farm, which does not have an AutoPay discount.
  • Allstate was founded in 1931 while State Farm was founded in 1922, and both companies have decades of successful experience serving drivers across America.
  • Allstate and State Farm both have an identical 3/5 rating from J.D. Power in terms of overall claims satisfaction.
  • At all credit levels, Allstate and State Farm tend to offer very competitive rates on car insurance; the two companies tend to offer annual quotes within $10 to $100 of each other.
  • If you have a bad driving record, then Allstate and State Farm both tend to offer similar rates, although State Farm tends to charge bad drivers slightly lower premiums.
  • Allstate tends to offer slightly cheaper car insurance premiums for young drivers (drivers under age 20).

Keep in mind that these differences can vary widely based on your state, your vehicle, and your demographic information, among other factors.

Allstate vs. State Farm: Which One Should You Choose?

Ultimately, Allstate and State Farm offer competitive rates across the country. Specific policies vary between states, but the two companies tend to offer similar prices for similar car insurance products. Nevertheless, it’s always a good idea to compare quotes from both companies before you make a purchase. Request free car insurance quotes from Allstate and State Farm today to discover which company is the best choice for your unique needs.

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.
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