Allstate vs. State Farm: The Ultimate Car Insurance Comparison
When it comes to insuring your car, Allstate and State Farm are two of the biggest names in the business, each with a long history and massive network of agents. But despite their size and familiarity, they cater to different types of customers. This article will help you decide which company is the best fit for your specific needs by breaking down their pros, cons, and key differences.
Allstate: Tailored Coverage and Unique Perks
Allstate is well-known for offering a wide array of coverage options and unique programs that go beyond a standard policy. While their rates can be higher than competitors on average, they may be a great option for drivers who want specialized protection or prefer an in-person, local agent experience. Allstate's "Drivewise" program, which rewards safe driving with cash back, is a popular feature.
Pros of Allstate:
More Coverage Options: Allstate offers a broader selection of optional coverages, including "Accident Forgiveness" and "New Car Replacement" which are not typically available from State Farm.
Good for Bundling: Allstate's rates for home insurance are often competitive, and bundling can lead to significant discounts on both home and auto policies.
Strong for Poor Credit: For drivers with a poor credit history, Allstate may offer more favorable rates than State Farm.
Cons of Allstate:
Higher Average Rates: For most drivers with a clean record and good credit, Allstate's premiums are generally higher than State Farm's.
Mixed Customer Satisfaction: While they offer a large network of local agents, Allstate has received mixed reviews for customer and claims satisfaction in some industry studies.
No Gap Insurance: While they have many add-ons, Allstate does not offer gap insurance.
State Farm: The Low-Cost Leader with a Personal Touch
State Farm holds the largest market share in the U.S. and is often a top choice for its consistently low rates and high customer satisfaction. The company operates through a vast network of local agents, offering a personalized service that many customers value. State Farm is a strong contender for a wide range of drivers, especially those with good credit and a clean driving record.
Pros of State Farm:
Lower Average Rates: State Farm is consistently cheaper for the majority of drivers, especially those with good credit or a clean driving record.
High Customer Satisfaction: State Farm generally ranks higher than Allstate in J.D. Power studies for both claims and overall customer satisfaction.
Local Agent Network: With a massive network of local agents, State Farm offers a personalized service experience that can be invaluable for policy management and claims.
Better for High-Risk Drivers: State Farm tends to have better rates for drivers with speeding tickets or a DUI on their record.
Cons of State Farm:
Fewer Add-on Options: State Farm has a more limited selection of specialized coverage options, such as accident forgiveness or new car replacement.
Poor for Poor Credit: State Farm's rates for drivers with poor credit can be significantly more expensive than Allstate's.
No Gap Insurance: Like Allstate, State Farm does not offer gap insurance.
Key Factors to Consider When Choosing
| Feature | Allstate | State Farm |
|---|---|---|
| Average Rates | Generally higher, but may be better for those with poor credit. | Typically lower for most driver profiles. |
| Best For | Drivers who need specialized coverage, those with poor credit, and customers who want to bundle policies. | Drivers with clean records, those with good credit, and those who prioritize local agent service. |
| Coverage Options | More specialized add-ons like "Accident Forgiveness." | Standard coverage with fewer optional endorsements. |
| Customer Service | Mixed reviews for claims satisfaction. | Consistently high ratings for claims and customer satisfaction. |
| Discounts | Numerous discounts, including for safe driving and bundling. | Offers a wide range of discounts, including for telematics programs. |