Allstate vs. State Farm

In our recent evaluation of the best overall car insurance provider, State Farm won for price and coverage. Allstate was specifically best for bundling home and auto insurance.

When it comes to cost, State Farm wins for every driver profile we looked at, except those with low credit. Their average rates are significantly lower than Allstate’s in most cases. It’s still worthwhile to get quotes from both companies, however, because these rates are just averages, so you may end up getting a cheaper rate from Allstate.

Both State Farm and Allstate have the basic coverages you would expect from an auto insurer, which include liability, comprehensive, collision, uninsured/underinsured motorist, medical payments, and personal injury protection.

In addition, they offer optional coverages you can add to your policy should you wish to, for enhanced financial protection:

*Vehicle loans from State Farm Bank include Payoff Protector coverage, which is similar.

Some coverage options might not be available in every state, so it’s a good idea to confirm with an agent if you’re unsure.

In addition to coverage options, State Farm and Allstate also offer auto insurance discounts that can help drivers save on their premiums. These include common discounts like bundling and more specific discounts like anti-theft discounts.

There are also several discounts that are only available from one company or the other. For example, State Farm has a discount for low mileage, while Allstate does not. On the flip side, State Farm does not offer a new-car discount, so if you drive a newer vehicle, you may want to look into Allstate.

Take a look at the full list of the main discounts offered by both companies below to get an idea of whether you may benefit from going with one company over the other. Discounts vary by state, so the ones listed below might not necessarily be available where you live. In addition, you may still get a lower rate from a company that doesn’t provide as many discounts, so always compare multiple quotes.

Allstate vs. State Farm Telematics Programs

Allstate and State Farm both offer telematics discount programs to help policyholders save on their policies. Allstate has Drivewise, and State Farm has Drive Safe & Save and Steer Clear, which is specifically for young drivers. Using either a Bluetooth device that you put in your car or a mobile app (or both), the insurance company can track your driving habits and provide a corresponding discount if you drive safely.

State Farm’s Drive Safe & Save offers a discount of 5 percent to 10 percent just for signing up and up to 30 percent at your next renewal. The discount will vary based on your exact driving behavior, as well as your state. This program is not available in California, Massachusetts, or Rhode Island, and it’s not always available in North Carolina.

Drivewise (Allstate) offers a discount of up to 10 percent at signup and up to 40 percent at policy renewal, which is more than most competitors. Note that Drivewise is not available in California or Arkansas.

Drive Safe & Save ranked slightly higher than Drivewise in J.D. Power’s 2024 U.S. Auto Insurance Study, with a score of 820, compared to Drivewise’s 818. Both were slightly below the average score of 821.²

When considering various industry studies and metrics, State Farm comes out on top when it comes to customer service. Here’s how the companies compare in various customer experience areas:

Claims Satisfaction

State Farm received a score of 710 out of 1,000 in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, placing it in sixth place and above the average of 697.³ Allstate scored 691 out of 1,000, placing it 15th, which is below average. Claims satisfaction measures how policyholders rate their experiences with the insurer during the claims process, including factors such as speed, fairness, and ease of service.

Meanwhile, the 2024 CRASH Network Report Card ranked State Farm higher than Allstate, indicating that auto shops have a more positive experience dealing with State Farm. However, neither company received a particularly high grade. The highest score among the 10 largest insurers was a C+ (American Family).⁴

Customer Service

J.D. Power’s 2024 U.S. Auto Insurance Study evaluates overall customer satisfaction with insurers. In this study, State Farm ranked between first and fifth place in most regions. Allstate ranked below average in most regions and below State Farm in every region.

Here’s a breakdown of each company’s score (out of 1,000) by region:

State Farm also has a lower complaint index than Allstate, according to the National Association of Insurance Commissioners (NAIC), which logs customer complaints against insurers. That said, both companies receive more complaints than average, which is represented by an index of 1. As of 2023, State Farm had a complaint index of 1.96,⁵ while Allstate’s was 3.53.⁶

Shopping

Based on J.D. Power’s 2024 U.S. Insurance Shopping Study, customers tend to be more satisfied with the process of shopping for and purchasing a policy from State Farm. It ranked fourth in the study, while Allstate ranked 12th.⁷

This is noteworthy since State Farm doesn’t provide the option to purchase a policy online, unlike Allstate. With State Farm, you can start a quote online, but it must be completed on the phone with an agent.

The J.D. Power study takes into account factors like policy offerings, quote process, and distribution channel, so State Farm’s high ranking may indicate that customers are satisfied with aspects of the company such as pricing and availability of agents.

Allstate and State Farm both have intuitive mobile apps and online platforms, which you would expect from major insurance companies. Using their online tools, policyholders can access policy information, file claims, get roadside assistance, and more. Here’s a breakdown of each app:

Allstate ranked slightly higher than State Farm on J.D. Power’s 2024 U.S. Insurance Digital Experience Study, indicating that customers are more satisfied with Allstate’s digital tools. It ranked fourth out of 16 national insurers in the service category, with a score of 713 out of 1,000. Meanwhile, State Farm was sixth with a score of 703. Both companies scored higher than the segment average.⁸

In the shopping category, Allstate scored sixth with a score of 516 out of 1,000, while State Farm scored 15th with a score of 513. The scores in this study make sense, considering  Allstate offers online quotes, while State Farm requires customers to go through agents to purchase a policy.

Both Allstate and State Farm are reputable companies that offer a solid range of coverage options and can be relied upon to pay out claims. In most cases, State Farm is likely the better option due to their cheaper average rates and higher overall customer satisfaction ratings. However, you should always get a quote from both companies — and at least one other company — to compare premiums and make sure you get the best deal.

In addition, there are specific circumstances in which one company may be better for you or should be eliminated from your consideration. For example, Allstate has lower average rates for drivers with poor credit, so if you live in a state that allows insurers to consider credit history when determining premiums, you may fare better with Allstate.

Meanwhile, State Farm does not allow customers to purchase policies online and does not offer accident forgiveness, so keep this in mind if either of those are deal-breakers. Both companies have telematics programs that track driving habits and reward safe driving, but only Allstate’s may increase your rate, so don’t opt in unless you are confident in your safe driving habits.

At AutoInsurance.com, we use four key factors to evaluate auto insurers:

• Price (40%): We analyze average premiums for both full and minimum coverage for a standard driving profile of a good driver with good credit. We also looked at rates for other driver profiles, including those with violations or low credit scores. We also consider available discounts. Full coverage averages use the following limits:
  • Bodily injury liability: $100,000 per person/$300,000 per accident
  • Property damage liability: $50,000 per accident
  • Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
  • Comprehensive and collision: $500 deductible
• Claims Handling (25%): An auto insurer’s claims handling process should be quick, transparent, and efficient, with clear communication, fair evaluation of damages, and timely payment or resolution. We assess claims practices using sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Global Ratings. We also include real-life customer experiences when possible.
• Customer Experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings, and app store reviews.
• Coverage Options (10%): We review each company’s coverage offerings and prioritize providers with options beyond the state-required minimums, such as accident forgiveness, gap coverage, rideshare coverage, and more.

Read more about our ratings and methodology.