Allstate vs State Farm

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State Farm is the largest vehicle insurer in the U.S. with a 16% market share. Founded in Bloomington, Illinois in 1922, State Farm has consistently been the largest auto insurer in the country since 1942. The carrier offers a full range of insurance and financial services including home, auto, life and annuities. State Farm is a mutual insurance company, meaning the policyholders own a part of the company.

Allstate is another long-standing insurance company and a neighbor of State Farm, headquartered in Northbrook, Illinois. Although it does not write as many policies as State Farm, it is the fourth-largest company for car coverage in the country with a market share of 9% and the largest publicly-held insurance company in the U.S. Allstate provides customers with innovative ways to save such as accident forgiveness and a safe-driving bonus that is awarded every six months.

Allstate vs State Farm: car insurance rates comparison

Both companies have many similarities but do operate differently. If you are trying to decide between State Farm vs. Allstate, take a look at this overview of how the two major carriers compare.

Car insurance company Bankrate score AM Best J.D. Power Average annual premium for minimum coverage Average annual premium for full coverage
Allstate 3.6 A+ 876 / 1,000 $697 $1,921
State Farm 4.5 A++ 881 / 1,000 $539 $1,457

Rates by credit score

You may be surprised to know that vehicle insurers check your credit score when setting your auto insurance premium rate. Applicants with good credit typically get better rates than those with lower credit scores. However, the states of California, Hawaii, Massachusetts, Oregon and Michigan forbid insurance companies from using credit scores to determine insurance rates. Unless you live in one of those states, Allstate Insurance may be better for car owners with lower credit scores and State Farm is best for those with average credit or better.

Car insurance company Poor Average Good Excellent
Allstate $3,157 $2,312 $1,921 $1,989
State Farm $3,309 $1,656 $1,457 $1,126

Rates by age

Young drivers under 25 pay the highest car insurance premiums of all ages. Insurance companies find them to be more at risk for causing accidents due to their lack of time behind the wheel. When deciding on Allstate vs. State Farm for young-driver coverage, State Farm’s rates are well below Allstate’s.

Car insurance company Age 16* Age 18 Age 25 Age 30 Age 40 Age 60
Allstate $2,459 $6,152 $2,629 $2,317 $2,302 $4,017
State Farm $2,077 $4,137 $1,694 $1,494 $1,453 $2,209

*16 year old cost when added to parents’ policy

Rates by driving record

Safer drivers tend to get the best rates for car insurance due to the fact that they are rarely at-fault in an accident. Even with Allstate’s accident forgiveness and safe-driving bonuses, State Farm may be cheaper for drivers with moving violations, accidents or DUI convictions.

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
Allstate $1,921 $2,227 $2,570 $4,287
State Farm $1,457 $1,719 $1,834 $2,481

Allstate vs. State Farm: discounts

When comparing State Farm vs. Allstate for discounts, both car insurance companies are closely matched. Allstate offers 11 discounts. State Farm offers 13. The best ways to save with Allstate vs. State Farm are:

Allstate

  • Bundling — You have the potential to receive 10% off auto coverage and 25% off home or condo coverage when you buy both policies with Allstate.
  • Smart student — Young drivers can potentially earn the discount if they have a B- average or greater or complete the TeenSMART driving safety program.

State Farm

  • Drive Safe and Save — Download the phone app that tracks your driving habits and earn a potential up to 30% off for driving safely.
  • Steer Clear — Drivers under 25 could earn up to 25% off their premiums when they enroll in the program and complete the driver training requirements.

Allstate vs State Farm: online and mobile experience comparison

Allstate and State Farm both provide a robust online and mobile app experience. The carriers have a resource library with tutorials, calculators and useful information about insurance. Between the two apps, State Farm’s mobile app received better reviews from customers:

Allstate

  • Apple store Over 675,000 reviewers awarded Allstate an average of 4.8 out of 5 stars in the iOS app store. The app allows policyholders to enroll in Drivewise, the carrier’s telematics system that discounts car insurance based on your driving. You can also access 24/7 roadside assistance through the app, as well as take photos and upload them through the app when filing a claim.
  • Google Play Android users are not as happy with the recent updates to the Allstate mobile app and awarded it 3.1 out of 5 stars from nearly 76,000 votes. Many complain that the previous simplicity in handling basic car insurance tasks is gone.

State Farm

  • Apple store The clean and simple interface makes it easy to navigate. You can file vehicle and car glass claims from the app. Apple users award it an average of 4.8 out of 5 stars out of 315,000 votes.
  • Google Play State Farm’s app fares better than Allstate’s. Android users gave it a 4.6 out of 5, based on 65,000 reviews. Besides the functions you would expect from a car insurance mobile app, you can use Google Pay to pay your premiums.

Frequently asked questions

What are the best car insurance companies?

The best car insurance company depends largely on your needs and wants. You will want to consider the coverages required by your state, the optional coverages you want to add on and the various rates available. You will also want to consider the company’s ratings, available coverages and discounts, financial strength and available rates.

How much does car insurance cost?

Based on Bankrate’s research, the average cost of car insurance is $565 per year for minimum insurance and $1,674 for full coverage. However, your rates may be different depending on where you live, your driving record, age and the carrier you choose.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance, real estate and international business journalist. Besides Bankrate.com, her work has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and SimpleDollar.com. She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women’s NGOs about small business development.