Alliance United vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• In general, State Farm offers significantly cheaper premiums than Alliance United
• State Farm offers more affordable rates for policyholders who live in the suburbs
• State Farm offers less expensive average prices for policyholders who drive fewer than 12,000 miles annually

Alliance United or State Farm: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? With so many ads from all sorts of companies offering huge savings, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to Alliance United or State Farm for your next policy, but which one will save you the most?

Looking at nationwide averages, Alliance United is quite a bit more expensive than State Farm, with rates averaging $225 a month compared to just $158 with State Farm.

But that doesn't mean State Farm will necessarily be more affordable than Alliance United for every single driver. After all, insurance carriers can offer drastically different rates to every driver depending on rating factors like your age, your credit score, where you call home, or even your driving record (among other things). So, at the end of the day, premiums from each carrier will differ quite a bit from person to person.

Wanting to know if Alliance United or State Farm is really the right company for you? Keep on reading to see how average prices can change based on all of the factors we've mentioned above.

Alliance United vs. State Farm: Average Car Insurance Rates by State

Alliance United and State Farm only compete against each other in California, where State Farm offers the cheaper average rates. State Farm drivers tend to pay about $1 per month less on average compared to drivers who use Alliance United for their car insurance.

But there's more to insurance than just where you live. As we mentioned above, there's a lot of things that go into how auto insurance companies determine your premiums. Read on to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- normally pay a lot for car insurance compared to older drivers. That's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean teen drivers can't still save money on their insurance. As you can see above, teens who use State Farm save almost 15% a month compared to those who use Alliance United.

Even so, both carriers will drop rates by the time drivers turn 25. State Farm offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. Alliance United's average prices reduce over 45% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll usually enjoy the most affordable auto insurance premiums you can find. You've been on the road for years, and all that experience pays off when it comes to your monthly rates for car insurance.

So, which carrier offers the best premiums to retired drivers? State Farm gets the edge, with prices for drivers 65 and older nearly 45% less expensive than the national average for Alliance United.

Which is the Best Company for Married Drivers?

Married drivers tend to get slightly more affordable insurance premiums than single policyholders. That's because policies for married policyholders generally cover multiple vehicles, which several companies will give you a discount for.

For single drivers, the difference in average rates between these two carriers is significant, with State Farm prices coming in at a quarter less than Alliance United's. For married couples, the advantage is clear again - State Farm has the edge when it comes to average rates.

Alliance United or State Farm: Average Rates by Gender

Because women are less likely to get tickets and get into collisions, they are less likely to file a claim with insurance. So, insurance companies will often charge women less than men.

With Alliance United, both genders end up paying the same monthly price, and around $12 less with State Farm.

Looking at overall affordability, State Farm comes out as the lowest option for both genders. On average, male drivers save about $61 per month and women save about $73 with State Farm compared to the average Alliance United policyholder.

Alliance United vs. State Farm: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, auto insurance isn't the easiest topic to understand. There are several different coverages that account for multiple different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

That being said, most policies end up falling into two different types of coverage -- liability coverage (that covers property damage and bodily injury for other drivers and their passengers if you cause an accident) and full coverage (which typically refers to having collision and comprehensive coverages in addition to liability).

Looking specifically at state minimum liability limits, State Farm has the slight edge, with average monthly prices coming in at $99. If you want a full coverage policy with the same state minimum limits, State Farm again has the edge, with policies averaging around $216 a month to Alliance United's $349.

Is Alliance United or State Farm Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their insurance. But that's not to say you can't save money if you don't have the best driving record, either.

Speeding tickets and collisions will most likely raise your premiums, but is Alliance United or State Farm cheaper for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Alliance United for their auto insurance can generally expect their monthly bill to go up about 25% after getting a speeding ticket. State Farm policyholders can expect a less drastic increase of around 14%.

Even so, State Farm tends to offer the best prices for both drivers who have a recent ticket and those with clean records. With State Farm, drivers with a clean record can save about $5 per month and drivers with a speeding ticket can save around $30 a month.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Alliance United can expect to see about an $150 -- or around 52% -- rise in their insurance rates. Drivers who use State Farm for their car insurance will see a monthly bill about $29 (or 18%) more expensive after reporting a collision to their auto insurance company.

At the end of the day, State Farm offers the cheapest prices for drivers with an at-fault collision on their records, with average premiums coming in at $163 compared to Alliance United's $289.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even an accident. Alliance United drivers usually see a 52% increase in their insurance rates after a DUI charge, while State Farm will usually climb prices by around 25%.

How does Credit Score Impact Alliance United and State Farm Rates?

Did you know many auto insurance carriers take into account your credit score when determining premiums? Certain states and companies do not allow for credit score to be used as an insurance factor, but it might come into play for a lot of drivers.

Car insurance carriers argue that those with poor credit scores are less likely to pay their bills on time every month, which raises the risk involved on their end, while the opposite is true for those with good credit.

Looking specifically at Alliance United and State Farm, which company has the lowest prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Usually, if you have fantastic credit, you can expect to be rewarded. Improving your "good" credit score to an "excellent" one will normally save State Farm customers about $25. Because Alliance United, doesn't have data available for credit scores, they most likely don't use credit to calculate your premiums.

Which Company is Best for Drivers with Bad Credit?

Having bad credit can cost you with State Farm. If your credit score is in the "poor" range, at State Farm, you may pay around 50% more per month compared to those with "fair" scores (and even more compared to drivers with good or excellent scores). On the other hand, Alliance United doesn't have data available for credit scores, which means drivers with bad credit could find better rates with Alliance United over State Farm.

Is Alliance United or State Farm Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a considerable impact on your monthly rates. Typically, those who drive fewer miles will end up with less expensive prices since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, State Farm offers cheaper rates than Alliance United. State Farm's average premiums for drivers with 6,000 annual miles come in about $63 more affordable than Alliance United. Those who drive 12,000 miles each year can expect to pay around $73 less with State Farm over Alliance United.

Alliance United or State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for insurance, but the type of area you live in can have a substantial impact as well. Usually, those who live in rural areas will pay less than drivers in urban areas because of the small number of cars that are on the roads where they live.

State Farm tends to offer the most affordable prices for drivers in every type of area, no matter if it's urban, suburban, or rural.

For policyholders in urban ZIP codes, State Farm's average premiums are about $45 less than Alliance United. People who live in suburban areas pay around $78 less with State Farm compared to Alliance United. Those in rural areas can expect to save about $79 with State Farm compared to Alliance United.

Alliance United vs. State Farm Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by utilizing as many auto insurance discounts as possible.

But where do you even start? With so many discounts out there, it may seem hard to find all the of the ones you're eligible for.

Luckily, we did the hard work for you and compared all of the different discounts offered by Alliance United and State Farm so that you can easily see which company offers the most discounts and, therefore, the largest savings.

State Farm knocks Alliance United out of the park when it comes to the sheer number of discounts available, offering 23 different discounts to Alliance United's 23.

A couple of those are overlapping for things like discounts for being a defensive driver, discounts for being a good driver, and renewal discounts. State Farm also offers discounts for ABS, annual mileage, anti-theft, and more.

Alliance United's discounts come through just three categories -- Defensive Driver, Good Driving, and Renewal Discount.

Final Thoughts: Is Alliance United or State Farm Best for You?

So, you've seen how different variables can affect your insurance rates. We've shown you all the discounts each carrier offers, too. But, at the end of the day, which insurance company is the best fit for you?

State Farm might be best for you if....

• You will be the only person on the car insurance policy.
• Your credit score is high.
• You have a short commute.

Alliance United might be best for you if...

• You have a more unique driver profile than those we mentioned above.

Hopefully, this guide has ben a valuable resource as you compare Alliance United and State Farm and that you can now make a more informed decision when it comes to your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on car insurance -- comparing quotes from a handful of companies, not just Alliance United and State Farm. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top insurance carriers in your area, all in just a few minutes.

Alliance United vs. State Farm FAQs

Is Alliance United or State Farm cheaper?

State Farm is the less expensive of the two companies when looking at national average prices, with policies averaging $158 a month with State Farm and $225 for Alliance United. However, that doesn't mean State Farm will be the lowest carrier for everyone, since there are lots of different factors that are considered when it comes to your auto insurance cost.

Who is better, Alliance United or State Farm?

Sadly, the real answer is "it depends.". One company is not necessarily "better" for everyone -- it all depends on the makeup of your unique car insurance profile.

Why do Alliance United and State Farm offer me different rates?

Auto insurance carriers use quite a few different variables when calculating the rates they charge. Things like gender, age, where your home is, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both Alliance United and State Farm use different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from a variety of different companies.

How do I know if Alliance United or State Farm is right for me?

The only way to find the insurance company that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your information once and you'll get quotes from dozens of your local top auto insurance companies for free. With those, you can guarantee you're getting the best premium. And maybe you'll find that the best carrier for you isn't Alliance United or State Farm at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.