There is no denying that auto insurance matters! Allstate vs State Farm is a highly sought-after insurance battle. Two of the largest car insurance providers in the world are going head-to-head.
If you are looking to purchase auto insurance today I will make the choice easier for you with this comparison. In this article, I will be comparing features, discounts, claims, financial strength, and more. Let’s begin by finding out a little history about both companies.
History
What was once an idea sparked up while playing a bridge game on a commuter train, grew to be what we know today as Allstate. Robert E. Wood founded Allstate in 1931. By 1997 Allstate had over $80 billion dollars in total assets. Today Allstate has over $100 billion in assets.
State Farm began in 1922 by George Mecherle. In the 2017 Fortune 500, State Farm was ranked 33rd on the list. Today State Farm has over 70,000 employees and 19,000 insurance agents.
Which auto insurance company is the cheapest?
In a ValuePenguin study most people were able to get a cheaper yearly quote with State Farm than Allstate by a couple hundred dollars.
The cheapest states for State Farm are Nebraska, Kansas, Virginia. The cheapest states for Allstate are Virginia, Nebraska, Alabama. Month to month auto insurance rates vary from person to person so it’s essential that you get a quote for yourself today.
Claims comparison
Auto Insurance review using J.D. Power
To compare claims, we will be using the J.D. Power Customer Satisfaction Study. On a 1000-point scale State Farm received 865 points while Allstate received 864 points. In the actual study both insurance companies were tied in every category except the rental process. 
The rental process is based on how claimants rate the insurance company based on the rental car process. In this category Allstate received 4 Power Circles While State Farm received 3 Power Circles.
Home Insurance review using J.D. Power
In the 2017 U.S. Home Insurance Study State Farm received 4 out of 5 Power Circles in Overall Satisfaction. State Farm rated higher than Cincinnati Insurance, The Hartford, and more. Allstate rated about average with 3 out of 5 Power Circles in the Homeowners insurance Study. Both Allstate and State Farm rated higher than Nationwide, American Family, and other top insurance companies.
Renters Insurance Study
If you were looking for insurance for your apartment, then you have two great options in State Farm and Allstate. Both insurance carriers did better than most companies on the list and both companies received 3 out of 5 Power Circles in Overall Satisfaction.
Better Business Bureau
BBB allows us to know the trustworthiness of an insurance company. Some of the factors that BBB takes into consideration include: the size of the insurance carrier, number of complaints filed with BBB, the length of time the insurance business has been in business, and more.
State Farm was given an “A+” rating from Better Business Bureau which reveals a company that excels when it comes to handling customer complaints. Better Business Bureau gave Allstate a good “A” rating.
Auto insurance financial strength ratings
Financial strength allows us to know if our insurance provider has the funds to pay insurance claims. With some smaller companies with less assets, getting them to pay out claims might be a hassle. With both companies, you will not have to worry about if your company can pay out your claim or not. Allstate and State Farm have been around for decades and they have billions of dollars at their disposal.
A.M. Best is the oldest provider of insurance ratings.
S&P Global Ratings – Has been a leading provider of credit ratings, research, and thought leadership for over 100 years.
State Farm has over $160 billion in fixed income assets.
- State Farm received the highest rating possible from A.M. Best. A.M. Best gave State Farm an “A++” rating.
- S&P gave State Farm an “AA” rating.
At the end of 2015 it was reported that Allstate had nearly $104.7 billion in total assets.
- Allstate received an “A+” rating from A.M. Best.
- S&P gave Allstate an “AA-” rating.
- Moody’s Investors Service gave Allstate a great “Aa3” rating.
Which company handles customer complaints better?
Better Business Bureau – I love BBB. Better Business Bureau provides information about a company before you do business with it. They rate the reliability of a business based on a number of criteria. In this comparison BBB will allow us to know how well each insurance company handles complaints.
- Allstate received an “A-” rating from BBB.
- State Farm received an “A+” BBB rating.
Extras and features comparison
Allstate discounts
- Claim Satisfaction Guarantee – If Allstate customers are not happy with their auto insurance claims they will be able to get their money back without an issue. The Claim Satisfaction Guarantee is not available in all states.
- Car Payment Calculator – Allstate offers an awesome car payment calculator which helps you to determine how much your monthly vehicle payments may be.
- EZ pay plan discount – When customers set up automatic withdrawal to pay their insurance premium they can save up to 5%.
- Allstate eSmart – When you sign up for ePolicy, which is a convenient way to view documents. You will be able to save 10% on your auto insurance with this discount.
- Responsible payer – If you’re a person who always pays on time, then you will have no problem with qualifying for this discount. Allstate policyholders are able to save up to 5% by not receiving a cancellation notice for non-payment in the past year.
- Drivewise – It’s about time that you start getting rewarded for your good driving skills. Upon receiving your Drivewise device, plug the device in the OBDII port under your car’s dashboard. Now you are ready to save. The device will monitor things such as your driving speeds and your hard-braking habits. The safer that you drive the more points that you will be able to redeem later.
- Accident forgiveness – Accident forgiveness is great for both young and old drivers. Accident forgiveness gives your extra value and it might save you money just in case you ever get into an accident. With accident forgiveness, your rates won’t go up just because of an accident.
- Safe Driving Bonus – Allstate thinks that safe drivers should be rewarded twice a year. Road crashes cost $518 billion globally. It is reported that there are almost 1.3 million car accident-related deaths each year. 20 – 50 million people around the world become injured or disabled after an auto accident. Safe driving is a must. Every six months that you do not have an accident you will receive a check in the mail from Allstate as a reward.
State Farm discounts
- Good Driver – New State Farm customers receive this discount when they’ve gone at least three years without a moving violation or at-fault accident.
- Drive Safe & Save – State Farm’s Drive Safe & Save Program is similar to Drivewise. Drive Safe & Save is a usage-based program that personalizes your insurance rate based on your driving. State Farm claims that enrolling in Drive Safe & Save can help you get a discount up to 50% on your auto insurance. Every policy renewal your discount will be adjusted. All information gathered is only used to calculate discounts so you will not have to worry about increasing your rates with high-risk driving.
- Bundling auto & property – You can save 5% or more with State Farm by combining insurance for your car and property. You can save even more by adding more policies such as life and motorcycle insurance.
- Accident-free discount – Safe drivers who have been accident-free with State Farm for the past 3 years can save on their premium. The longer that you drive without an accident, the more that you can save.
- Multi car discount – With State Farm you can combine auto policies with anyone who lives in your home. With this discount drivers are able to save up to 20%
- Good student – Add an honor roll student onto your policy and you will receive a discount with State Farm. This discount remains in affect even after the driver graduates until the driver is 25 years old.
- Defensive Driving Course Discount – Drivers who take a driver safety course can save on auto insurance.
- Simple Insights – Get tips, view safety articles, and more.
App comparison
You can do various things through the Allstate app such as:
- Schedule a payment
- View Policy & Auto ID Info
- QuickFoto Claim
- Get Roadside Help
- Drivewise
- Find an Agent
- Parking Locator
- Find the nearest gas stations
- Check for Recalls
You can do various things through the State Farm app as well such as:
- View insurance policy info
- Use Touch ID
- Submit an auto claim
- View claim status
- Schedule a future-dated insurance payment
- Select service repair facilities
- View insurance card
Roadside assistance
SF – State Farm provides 24-hour emergency roadside assistance for customers who need towing, a locksmith, gas, oil, a jumpstart, change of tires, and more.
AL – There are three ways that you can get roadside assistance with Allstate. You can join their Motor Club for less than $5 a month. You can use their Pay-Per-Use service and only pay when you’re in need. Lastly, you can add roadside assistance to your policy. Allstate’s roadside assistance covers towing, lockouts, tire changes, jump-starts, and fuel delivery at the user’s expensive.
Bottom line
These two companies are similar in many ways. You wouldn’t go wrong with choosing either one. Both are packed with various discounts that you may be eligible. Both outperform most companies in the claims test. Also, both have a strong financial rating. Compare quotes today to see which company gives you better insurance rates.