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

Quick Facts

• Looking at the national averages for insurance, State Farm offers significantly less expensive prices than Allstate
• Allstate may help you save more money -- they offer more discounts than State Farm
• State Farm tends to be a much cheaper option for policyholders who live in rural neighborhoods

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

So, you're thinking about switching to a new insurance policy. You've probably seen commercials and billboards from companies offering big savings, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to Allstate or State Farm as your top options, but between the two, which company has more affordable rates for car insurance?

Looking at nationwide averages, State Farm has average rates that are around 21% a month cheaper than those from Allstate.

Even so, State Farm may not be the cheapest or best option for each driver out there. Insurance carriers vary their premiums depending on things like where you live, how good your credit score is, how old you are, how clean your driving record is, and all sorts of other factors, so rates will differ quite a bit from person to person.

Luckily, we've broken down average prices from both Allstate and State Farm by several different rate factors, so read on to find out which company is the best for you.

Allstate vs. State Farm: Average Car Insurance Rates by State

Allstate and State Farm compete against each other in 47 states, with State Farm offering more affordable rates to the average driver in all but seven of them. If you live in Alabama, Nebraska, New Jersey, New York, or Utah, Allstate is the less expensive of the two companies when looking at the overall average prices, but State Farm is the cheaper option in most of the others.

That being said, there are plenty of other factors that go into your auto insurance bill than just your home state. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for insurance than any other group of drivers out there on the road. The reason is that teen drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

But that doesn't mean teen drivers can't still save money on their car insurance. Just look at the table above -- where 18-year-old drivers who have State Farm for their auto insurance pay 20% less than those who use Allstate.

That being said, with both carriers, you'll see your premiums lower significantly once you turn 25. For example, average prices for Allstate policyholders drop almost 65% and State Farm's rates reduce nearly 60% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the lowest car insurance premiums you can find. After all, they've likely been driving for quite some time, which usually decreases their chances of collisions and other infractions that can raise rates.

When looking at Allstate and State Farm specifically, which carrier is best for retired drivers? State Farm gets the edge here, with average premiums coming in at about $111 per month compared to Allstate's $152.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance prices tend to be more affordable for married policyholders than they are for single drivers. That's typically because married drivers tend to own and insure more than one vehicle, which can often earn you a discount.

For those who are single, the difference in average premiums between these two companies is significant, with State Farm prices coming in at a quarter less than Allstate's. For married couples, the advantage is clear again - State Farm has the edge when it comes to average rates.

Allstate or State Farm: Average Rates by Gender

Men generally pay more for insurance than women. That's because women are less likely to get speeding tickets and get into accidents, which decreases the chances of filing a claim with insurance.

On average, women see prices around $10 per month less expensive with Allstate, and about $10 with State Farm.

Looking at the data for each company specifically, State Farm comes out as the most affordable option for both genders. On average, male drivers save about $39 a month and women save around $42 with State Farm compared to the average Allstate policyholder.

Allstate 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.

It's no secret that auto insurance can be a complicated subject for most people. There are so many different limits and terms that it can make it pretty confusing to find the right policy for you.

The two most common 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 a collision) and full coverage (which usually refers to having collision and comprehensive coverages in addition to what you get with liability).

Looking specifically at state minimum limits for liability insurance, State Farm has the slight edge, with average monthly premiums 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 about $216 per month to Allstate's $289.

Is Allstate or State Farm Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from insurance carriers offering great rates for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

You'll probably end up paying more with accidents and speeding tickets on your record, but which of these two companies offers the lowest premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Allstate for their car insurance can typically expect their monthly bill to go up around 15% after getting a speeding ticket. State Farm policyholders can expect a less drastic increase of about 14%.

However, State Farm tends to offer the best prices for drivers both with clean records and with a ticket, offering rates that are 14% and 15% cheaper, respectively, compared to Allstate.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through Allstate can expect to see around an $73 -- or about 32% -- rise in their auto insurance prices. Drivers who use State Farm for their car insurance will see a monthly bill around $29 (or 18%) more expensive after reporting an accident to their auto insurance carrier.

At the end of the day, the less expensive premiums come from State Farm, with average rates coming in at $163 compared to Allstate's $229.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your car insurance bill. For example, Allstate increases average prices by more than $70 a month -- that's more than a 30% increase.

But if you end up with a DUI charge and are looking for more affordable premiums, State Farm tends to be more affordable for the average driver, with monthly premiums coming in at about $179 to Allstate's $227.

How does Credit Score Impact Allstate and State Farm Rates?

Did you know many insurance carriers take into account your credit score when determining rates? Certain states and companies do not allow for credit score to be used as an insurance factor, but it does affect quite a few drivers out there.

Auto 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.

So, which company offers the best prices for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, State Farm will normally reward you the most. For drivers with "excellent" credit scores, State Farm comes in nearly 44.83 cheaper. Drivers with "good" credit scores typically save around 39% with State Farm compared to average rates from Allstate.

Which Company is Best for Drivers with Bad Credit?

If you have a below average credit score, it can be somewhat of a toss-up as far as which company offers you the best premiums. Drivers with "fair" credit pay about 27% less with State Farm than Allstate, but those whose credit is considered "poor" have it flipped -- saving around 8% per month with Allstate.

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

The amount of time you spend behind the wheel of your car plays a big role in how much car insurance companies will charge for coverage. Generally, those who drive less will end up with more affordable 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 tends to be the cheaper option. State Farm's average premiums for drivers with 6,000 annual miles come in about 23% less expensive than Allstate. Those who drive 12,000 miles each year can expect to pay around 18% less with State Farm over Allstate.

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

Where you park your car can have a large impact on your monthly insurance cost. Normally, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers due to the number of vehicles that are on the roads where they live.

State Farm boasts the cheapest average rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Those in rural areas can expect to save about 27% with State Farm compared to Allstate. People who live in suburban areas pay around 19% less with State Farm compared to Allstate. For policyholders in urban ZIP codes, State Farm's average premiums are about 17% less than Allstate.

Allstate vs. State Farm Discounts

No matter why you might be in the market for a new auto 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 car insurance discounts as possible.

But with what seems like a million different discounts out there, it can be challenging to find all the ones you qualify for or to nail down the company that has the most discounts for your unique driver profile.

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

Allstate blows State Farm away when it comes to the sheer amount of discounts available, offering 40 different discounts to State Farm's 23.

There are a couple discounts both carriers offer, but Allstate also offers discounts for advance quote, agency transfer, alert driving, and more.

On the other hand, State Farm has a few proprietary discounts of their own for things like drive safe & save discounts, goverment employee discounts, low income discounts, and more.

Final Thoughts: Is Allstate or State Farm Best for You?

So, you've seen how different factors can affect your insurance rates. We've shown you all the discounts each carrier offers, too. But, when it comes down to it, which company is the best fit for you?

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

• You have an at-fault accident on your record.
• You want the most robust protection via a "full coverage" policy.
• You're of retirement age and want to take advantage of lower prices.

Allstate might be best for you if...

• You're looking for the carrier with the most discounts.

Hopefully, this guide helps you get a better idea of the difference between Allstate and State Farm. We also hope we've given you the information you need to make the best decision when it comes to your car 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 auto insurance -- comparing quotes from multiple companies, not just Allstate and State Farm. Luckily, Compare.com does 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.

Allstate vs. State Farm FAQs

Is Allstate or State Farm cheaper?

State Farm is the more affordable of the two companies when looking at national average rates, with policies averaging $158 a month with State Farm and $199 for Allstate. That being said, that doesn't mean State Farm will be the lowest company for every driver, since there are lots of different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Allstate or State Farm?

Unfortunately, the only answer we can give you is "it depends.". No single carrier is necessarily "better" for each policyholder -- it all depends on what your unique auto insurance profile looks like. For example, Allstate is cheaper for drivers who have less-than-stellar credit scores, while State Farm offers less expensive prices for drivers with an at-fault collision on their record.

Why do Allstate and State Farm offer me different rates?

Insurance carriers use many different factors when calculating the premiums they charge. Things such as gender, your driving record, where your home is, age, and sometimes even things like your credit score can all be taken into consideration. Both Allstate and State Farm use different formulas, so it's likely they'll offer different prices. The best way to determine which company is the cheapest for you is by comparing personalized quotes from multiple different companies.

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

The only way to find the car insurance carrier that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top auto insurance companies for free. That way, you can guarantee you're getting the most affordable rate. And maybe you'll find that the best company for you isn't Allstate 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.