Allstate vs State Farm

Allstate vs State Farm

Allstate Vs. State Farm Insurance, which insurance company is a better choice in 2023? Both companies have been in the business for years, offering reliable services and great customer care – but how do you select one for your needs? In this comparison blog, we’ve put together everything you need to know to make an informed choice.

For more information on these agencies, you can also refer to our Allstate Insurance Review 2023 and State Farm Insurance Review 2023.

Allstate Insurance

Allstate is one of the U.S.’s top four insurance companies, bringing in an impressive $27.2 billion in premiums for 2021 alone! Its vast range of coverage options and mostly stellar customer ratings make it a great choice when looking for reliable insurance protection. It’s also worth mentioning that it has a 10.4% market share in the car insurance industry.

Pros and Cons of Allstate

Pros

• Variety of endorsements for most policies
• Exclusive digital tools to quickly understand auto, home, and life insurance policies and make a comprehensive plan
• Teen driving discounts, Drivewise savings, and the Safe Driving Bonus
• Claim satisfaction guarantee in certain states
• A nationwide network of agents and convenient online options
• Attractive discounts for homeowners’ insurance
• Helpful online tools, resources, and calculators
• A+ AM Best financial rating.

Cons

• Higher than-average rates
• Fewer agents than State Farm
• Only offers two renters insurance discounts
• Doesn’t sell individual health or disability insurance
• Significantly higher rates for teen drivers or those with poor driving histories

State Farm Insurance

State Farm is America’s most prominent auto insurer with a 15.9% market share, writing over $41 billion worth of premium policies across all 50 states! But that’s not all – they have 19,000 agents available to provide personalized service and advice nationwide. Not surprisingly, this popular provider has gotten plenty of positive feedback from customers and third-party rating sources like The Zebra – boasting strong customer satisfaction combined with excellent overall ratings for their products and services. As if it couldn’t get any better, State Farm celebrated 100 years in business in 2020, so you can trust them when looking at quality insurance options now more than ever!

Pro and Cons

Pros

• An easy, convenient mobile app that helps you stay in touch with your agents, take advantage of 24-hour emergency roadside assistance
• Up to $1127 worth of discounts by personalizing your policies bundle
• Agent network of over 19,000 insurance agents
• Wide range of coverage options
• Been in the industry for 100 years, so has good financial stability and resources.
• Overall, no 3 in the Best Car Insurance Companies of 2023
• Earns top marks from policyholders for customer loyalty, recommendations, and overall customer service
• Competitive rates for teen drivers and those with a single accident
• 48% of State Farm customers who haven’t filed a claim say they’re delighted with discounts offered by the insurer.

Cons

• Might not have many affordable options for drivers with poor driving records
• Fewer add-on coverages for those with specialized needs
• Very few home insurance endorsements

Background & Ratings

Allstate and State Farm are well-respected and innovative insurance providers that have earned the trust of millions of customers over the years.

Let’s look at the background and ratings of both insurance companies.

Insurance Options

Allstate and State Farm are two of the largest insurance carriers in the United States, offering a wide range of insurance products.

Allstate is the fourth-largest car insurance provider in the United States. Overall, it offers home, auto and life insurance policies.

State Farm offers a wide range of insurance products under property, personal, business, and financial categories.

Car Insurance Overview

Here’s an overview of car insurance offered by Allstate and State Farm:

Coverage Options: Regarding the basics of protecting your car, Allstate and State Farm offer all the policies you need for vehicle owners – from bodily injury and property damage liability insurance to collision and comprehensive coverage. But some things set them apart! If the worst happens and you’ve got an “oops” moment with your wheels, consider gap insurance on Allstate, which will help cover what’s remaining owed on your ride if/when something goes awry. On the other hand, State Farm has Payoff Protector®, available only through their bank.

Discounts: Allstate and State Farm offer discounts for good students/students, students away from home, bundling policies, multi-vehicle, good drivers, defensive driving courses, new cars, and tracking device programs. Allstate, however, does not offer discounts for customer loyalty and low mileage, whereas State Farm does not provide discounts for paperless billing and up-front payments.

Customer Service: State Farm is relatively better in terms of customer service. 65% of Allstate customers are completely satisfied with the new-policy process, while 72% of State Farm customers are happy with the same process.

Roadside assistance is a service that helps drivers who experience unexpected car issues while driving. Here’s how the roadside assistance benefits provided by Allstate and State Farm compare:

Telematics Comparison

Allstate and State Farm have their usage-based insurance (UBI) programs, Drivewise and Drive Safe & Save, which track driving behavior and offer personalized auto insurance rates.

 

View this post on Instagram

 

A post shared by The Holderness Family (@theholdernessfamily)

Home Insurance Overview

Coverage Options: Finding the right coverage for your home matters, and both State Farm and Allstate offer plenty of options. When you select a dwelling limit with State Farm, they’ll sweeten the deal by giving you an extra 20% on top! It helps show a little bit of cushion if repairs cost more than expected – which can happen when inflation is high. While Allstate offers it at additional cost, only State Farm includes ordinance or law coverage as part of its basic policy. This could be especially useful if you live in an older house that needs updating according to current building codes during covered repairs.

Discounts: Allstate and State Farm offer discounts for multi-policies and security system installations. Allstate offers additional discounts for the responsible payer, claim-free, automatic payments, and early signing. State Farm, on the other hand, offers discounts on impact-resistant roofs.

Pricing: With State Farm and Allstate, you get two different options for home protection. While the average cost of a policy from both providers is roughly $1,500 per year (State Farm at $1,356 and Allstate slightly higher at $1,594), their underwriting methods are unique, so your quotes may be wildly different than these figures!

Customer Service: State Farm and Allstate are here to make your insurance experience easy-breezy! Both offer great websites where you can get a quote or pay bills. Plus, they have mobile apps with unique features like the Digital Footprint – which helps track data breaches. Need personal advice? Reach out via phone numbers or email; their reps would love to hear from you. And if it comes down to taking care of claims in an emergency: remember that according to J.D. Power’s research study on property claim satisfaction rates…State Farm was above average, while Allstate was below that magical number.

Rate Comparison

Allstate and Progressive are known for their competitive pricing and attractive discount offer. While rates can vary depending on multiple factors like coverage requirement, credit score, location, and history of the buyer, here’s a look at the average rates of both carriers:

Car Insurance Discounts

Here are the car insurance discounts that Allstate and State Farm offer:

Home Insurance Discounts

Here are the home insurance discounts that Allstate and State Farm offer:

Information on Claims

Filing a claim with your insurer is easy – and if you have State Farm or Allstate, it’s even more accessible. You can file auto, home, renters’ insurance claims, and windshield glass repair claims online or on the mobile app! For everything else, though? Call them directly – they’ll need some info from you, like your policy number and statements & photos, to report the damage. And then, their team will assign an adjuster who’ll guide you through what’s covered under your plan so that everything gets sorted thoroughly!

 

View this post on Instagram

 

A post shared by State Farm (@statefarm)

Customer Satisfaction

State Farm has achieved impressive scores in two big auto insurance studies – they were a top dog with 885 points out of 1,000 on the J.D. Power Insurance Shopping Study. They secured a third place amongst large insurers at 882/1,000 for their U.S. Auto Claims Satisfaction Study performance! Even though Allstate ranked below average (854) for shopping around but had a winning score in claims satisfaction, where it scored first among large insurers, both companies have an A+ rating from BBB despite customer ratings being low – which is typical when dealing with life’s necessities like insurance policies!

Allstate Vs State Farm: Which Company is Best for You?

Allstate and State Farm are two of the largest insurers in the U.S. Both carriers have impressive financial resources and enough capital to meet your insurance needs.

State Farm is a better option for drivers seeking affordable car insurance, with a full coverage policy priced at $427 annually. It also has better discounts and more transparency in pricing. Additionally, State Farm is also a more prominent insurer than Allstate.

In terms of customer service, however, Allstate steals the cake. The company has received fewer complaints about its claims service relative to its market share.

Ultimately, the best insurance provider for you will depend on your specific requirements and preferences, so it’s worth comparing what both companies offer before deciding.