Allstate vs. State Farm: Prices and Coverage (2022) – MarketWatch | CarTailz

If you consider Allstate vs. State Farm, you will see many similarities. Both companies offer a wide range of coverage options and have strong reputations in the auto insurance industry. The main difference between the two popular providers is affordability. State Farm’s consistently low rates helped it win the Editor’s Choice Award in our 2022 review best car insurance companies. Allstate ranked 13th in the study, largely due to its higher-than-average premiums.

At the Guides Auto team, we’ve dug deep into each company’s coverage options, rates, discounts and customer service to see how they compare. In this article, we give you all the information you need to decide between Allstate and State Farm for your auto insurance.

Comparison of Allstate and State Farm

When it comes to their reputations, both Allstate and State Farm have positive industry reviews from multiple organizations.

About Allstate

According to the National Association of Insurance Commissioners (NAIC) all states is the fourth largest auto insurance provider in the United States, behind State Farm, Geico and Progressive. The company wrote $27.2 billion in awards in 2021 and holds 10.4% market share in the motor insurance industry.

Allstate was founded in 1931 and sold auto insurance through the Sears catalog. Allstate insurance policies are available statewide, although discounts and supplemental coverage vary by state.

About State Farm

The NAIC reported district farm owned 15.9% of the US auto insurance market in 2021 and wrote over $41.6 billion in auto insurance premiums during the year. State Farm has more than 19,000 insurance agents across the country. The company’s auto insurance coverage is available in all states, although it no longer sells new policies in Massachusetts or Rhode Island.

State Farm celebrated its 100th anniversary in 2022. The company offers affordable rates for most drivers and has an excellent reputation in the insurance industry as a whole.

Allstate vs. State Farm: Coverage

It’s easy to purchase standard Allstate and State Farm covers. These common insurance products include personal injury and property damage liability insurance, uninsured driver protection, collision protection and comprehensive coverage.

You’ll notice some differences between Allstate and State Farm coverage when it comes to add-on policies. Allstate offers for example gap insurance which covers the difference between the value of your car and your debts in the event of a total loss. State Farm offers a similar benefit called the Payoff Protector®but it is only available to customers with a loan agreement from State Farm Bank.

Allstate vs. State Farm: Use-Based Insurance

All states telematics insurance Program is called Drivewise®. Drivers can unlock savings simply by activating the program for free on the Allstate mobile app. In addition to tracking safe driving behaviors that can grant discounts, Drivewise also includes an accident detection safety feature that helps drivers call for help after an accident.

Drivewise features driving challenges like keeping your speed below 80mph and avoiding hard braking for specific periods of time. Allstate’s usage-based insurance product is available in 49 states, although drivers in Arkansas, new York and North Carolina may not be eligible for all discounts.

Drive Safe & Save™ is State Farm’s usage-based program. Those who sign up for the program receive an instant discount, and drivers can save up to 30% by maintaining safe driving habits. Drive Safe & Save tracks how fast you accelerate and corner, as well as how often you brake hard. The times of day you drive most and how much you use your phone in the car are also monitored.

Drive Safe & Save is not available to drivers in California, Massachusetts or Rhode Island. As with Allstate’s usage-based program, North Carolina drivers may not be eligible for some Drive Safe & Save discounts.

Allstate vs. state farm pricing

Price is one of the key differences between Allstate and State Farm. In our 2022 test, we give State Farm a 9.2 out of 10.0 for cost, while Allstate scores just 6.5. As you can see in the chart below, State Farm’s average annual rate is well below the national average, while Allstate’s is significantly higher.

*Note: All estimates are for comprehensive insurance and are based on the standardized profile of a 35-year-old driver with a clean driving record and a good credit history, unless otherwise noted.

Allstate vs. State Farm Cost Estimates

Auto insurance rates vary widely based on personalized factors like age and driving habits, but Allstate charges higher rates, on average, for many types of drivers. Here are some cost estimates from Allstate and State Farm covering a range of driver profiles. All estimates below refer to fully comprehensive insurance.

Allstate vs. State Farm discounts

Allstate and State Farm offer many of the same savings options, such as B. Discounts for safe drivers and for bundling your car policy with renters or contents insurance. However, there are also some differences in the discounts they offer.

For example, State Farm does not offer a full payment discount, but offers a discount if you remain accident free for three years. Allstate policyholders can benefit from a paperless rebate, while State Farm customers cannot.

Allstate vs. State Farm: Customer Experience

State Farm ranks high in two major auto insurance studies. In which JD Power Insurance Shopping Study, State Farm ranked first among major insurers with 885 points out of a possible 1,000. The company ranked third among the major insurers JD Power 2022 US Auto Claims Satisfaction Study℠ with 882 out of 1,000 points.

Allstate underperforms in the Insurance Shopping Study with 854 points out of 1,000. Allstate performed much better in the Auto Claims Satisfaction Study, ranking first among major insurers with a score of 889.

Both Allstate and State Farm have BBB A+ ratings, although BBB customer ratings are very low for both companies. It’s important to note that customers are more likely to report negative experiences to the BBB than positive ones, and these low BBB customer ratings are standard in the insurance industry.

Allstate vs. State Farm: Conclusion

You will see many similarities when you compare Allstate vs. State Farm. Both companies have a long history of providing quality auto insurance for all types of drivers. However, Allstate’s above-average rates leave it far behind State Farm in our ranking of the best auto insurance companies.

Other Recommended Auto Insurance Providers

Finding the best prices is a matter of Compare car insurance Offers from multiple providers. The following insurance companies are ideal options to include in your search.

Geico: Affordable for most drivers

Geico is the second largest auto insurer in the United States, according to NAIC. The company holds one Rating A+ from the BBB and a Financial strength rating A++ from AM Best. Geico also has our highest industry reputation rating of 9.8 out of 10.0. Low rates and a variety of discounts make Geico a smart option for every type of driver.

Continue reading: Geico insurance review

Travelers: Most coverage options

We give travelers a 9.3 out of 10.0 for the coverage options and tie in with that USAA for the highest rating in this category. The company offers fully comprehensive vehicle insurance at an average cost of approx $1,669 per year, which is below the national average of $1,730 annually. Travelers has been in business for over 150 years and has a Financial strength rating A++ by AM Best.

Continue reading: Review of travel insurance

Our methodology

Because consumers rely on us to provide objective and accurate information, we have developed a comprehensive rating system to formulate our ranking of the best auto insurance companies. We collected data on dozens of auto insurance providers to rank the companies based on a variety of ranking factors. The end result was an overall rating for each provider, with the insurers with the most points topping the list.

Here are the factors our reviews take into account:

  • Cost (30% of total score): Auto insurance rate estimates and discount opportunities generated by Quadrant Information Services have been included.
  • Coverage (30% of total score): Companies that offer a variety of insurance coverage choices are more likely to meet consumer needs.
  • Reputation (15% of total score): Our research team considered market share, industry expert reviews, and fiscal year to assign this rating.
  • Availability (10% of total score): Auto insurance companies with greater state availability and fewer licensing requirements scored highest in this category.
  • Customer Experience (15% of total score): This score is based on the number of complaints reported by NAIC and customer satisfaction ratings reported by JD Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own buyer analysis.

*Data correct at time of publication.

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