Compare Allstate vs. State Farm Auto Insurance

April 18, 2014

Comparing auto insurance companies can be more difficult than comparing their rates. A rate is upfront and simple. Auto insurance companies tend to be obtuse, large, and complex. That’s why when most of us search for auto insurance, we stick with brands that we recognize. For people who want more than just a low rate, comparing insurance companies is very important. We’ll kick off this series by comparing Allstate vs. State Farm.

Why Compare Allstate vs. State Farm?

Allstate and State Farm are two of the largest auto insurance companies in the U.S. At first glance, it seems there isn’t much difference between the two. Both are top tier insurance brands widely known throughout the U.S. The insurance products they offer are largely similar and where there are differences they are often not obvious to the average consumer—particularly to price shoppers. There are differences though—differences that could potentially influence your buying decision.

About Allstate

Allstate is the third largest auto insurance company in the U.S. in terms of premiums written. That means that the total dollar amount they charge for coverage across all of their customers totals to be the third highest of all U.S. insurance companies. That’s a lot of coverage.

Additionally, Allstate is a publicly traded company. That means they are listed on the stock market and that their business decisions are driven largely by what stockholders want.  With that said, 73% of customers said they would recommend Allstate and 89% said they would renew.

Allstate, like most other auto insurance companies, has special programs and discounts. Allstate is known for their Accident Forgiveness program which prevents your rates from going up if you had an accident if you are an otherwise safe driver and have no other accidents on your record.

You can learn more about Allstate auto insurance by reading their profile in the Auto Insurance Companies section of our site.

Allstate Discounts

Allstate offers a wide range of discounts, but not all discounts are created equal.  Here are some of the best discounts Allstate offers. Compare these to State Farm and their discount types and rates.

  • Safe Driver- Up to 45% discount
  • Passive Restraint (airbags, for example)- Up to 30% discount
  • Good Student- Up to 20% discount

About State Farm

State Farm is the largest U.S. auto insurance company and is nearly twice the size of Allstate. They’ve been around a long time, but to avoid boring you with the details, we’ll let you visit our State Farm company page to get detailed information about the company itself.

We should mention that State Farm stands out when you compare them to Allstate because State Farm is a privately held company. They are not traded on the stock market, but they aren’t a mutual company either (that is, they aren’t owned by their customers). It could be something that affects customers, but it’s not too likely. As a matter of fact, 85% of State Farm customers report that they would recommend State Farm and 93% said they would renew their existing auto insurance policy.

State Farm Discounts

State Farm, like most large auto insurance companies, offers a wide selection of auto insurance discounts. If you’re going to compare auto insurance, the availability of discounts is a great place to start. Of course, if premiums are higher with one company versus another, they could negate discounts that are offered. Be sure to take this into account when comparing auto insurance.

  • InDrive Discount (for using a telematics device)- Up to 50% discount
  • Good Student Discount- Up to 25% discount
  • Multiple Automobile- Up to 20% discount

Allstate vs. State Farm: Which One Works for You?

The cost of auto insurance is often what matters most to people who compare auto insurance. There’s nothing wrong with that, but it makes sense to look at more than just the cost. Hopefully the information we’ve provided here will give you a better idea of the difference between State Farm and Allstate. So if your choice comes down to one or the other, you’ll have an easier time making that decision.  We’d also like to encourage you to read our additional company information for each of these insurance companies before making up your mind. It’s important to get the whole picture.

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