Choosing between Allstate and State Farm can be challenging since both are among America’s largest insurance companies. This comprehensive comparison examines coverage options, pricing, customer satisfaction, and claims handling to help you make an informed decision about which insurer best meets your needs.
Quick Comparison Overview
Winner: State Farm – Based on overall value, customer satisfaction, and pricing
| Factor | State Farm | Allstate | Winner |
|---|---|---|---|
| Average Rates | Lower | Higher | State Farm |
| Customer Satisfaction | 85% | 79% | State Farm |
| Claims Handling | Higher rated | Lower rated | State Farm |
| Market Share | #1 (17.7%) | #4 (10.4%) | State Farm |
| Coverage Options | Excellent | Excellent | Tie |
| Discounts Available | 19+ discounts | 12+ discounts | State Farm |
Company Background and Market Position
State Farm Insurance Founded in 1922, State Farm has grown to become America’s largest auto insurer with a 17.7% market share. The company serves over 83 million policies across all 50 states and is known for its extensive agent network and “Good Neighbor” philosophy. State Farm is headquartered in Bloomington, Illinois, and maintains financial strength ratings of A++ from AM Best.
Allstate Insurance Established in 1931, Allstate holds the fourth-largest position in the US auto insurance market with a 10.4% market share. The company is headquartered in Northbrook, Illinois, and serves customers in all 50 states. Allstate markets itself with the slogan “You’re in Good Hands” and maintains strong financial ratings, including an A+ from AM Best.
Pricing Comparison: State Farm Wins
State Farm tends to offer lower rates than Allstate, with State Farm typically providing better value for both liability-only and full-coverage policies. While both companies’ average premiums are higher than the national average, Allstate has the highest rates among major insurers.
Average Annual Premiums:
- State Farm: $1,466 (full coverage), $543 (minimum coverage)
- Allstate: $1,880 (full coverage), $624 (minimum coverage)
Savings Potential: Choosing State Farm over Allstate could save you approximately $400+ annually on full coverage. However, individual rates vary significantly based on factors like:
- Age and driving history
- Credit score
- Location
- Vehicle type
- Coverage limits
For comprehensive guidance on obtaining the best rates, check our article on how to shop car insurance quotes effectively.
Customer Satisfaction: State Farm Leads
Based on 2024 customer satisfaction surveys, State Farm rates significantly higher than Allstate, with 85% of State Farm customers satisfied compared to only 79% of Allstate customers. State Farm earned a higher J.D. Power customer satisfaction score and a higher Insurify Quality (IQ) Score of 9.3 compared to Allstate’s 8.9.
Customer Service Metrics:
- State Farm: Higher ratings for responsiveness and helpfulness
- Allstate: Mixed reviews, with some customers reporting longer wait times
- Claims Processing: State Farm has the highest ranking for customer satisfaction with auto claims among the four largest insurers
Complaint Ratios: As of 2024, State Farm had a complaint index of 2.13, while Allstate’s was significantly higher at 4.04, indicating fewer customer complaints relative to market share. These figures are tracked by the National Association of Insurance Commissioners (NAIC).
Coverage Options and Features
Both insurers offer comprehensive coverage options, but with different strengths:
State Farm Coverage Advantages:
- Steer Clear discount program for teen drivers
- Drive Safe & Save usage-based insurance
- Rideshare coverage for Uber/Lyft drivers
- Drive Safe & Save rewards safe driving with up to 30% discounts
- 19+ available discounts including multi-policy, good student, and defensive driving
Allstate Coverage Advantages:
- Drivewise program offers up to 40% savings
- Accident forgiveness after 5 years
- New car replacement coverage
- Deductible rewards program
- Sound Knowledge program for teen drivers
Shared Features:
- Gap coverage for leased/financed vehicles
- Roadside assistance
- Rental car reimbursement
- Glass coverage
- Custom equipment coverage
Digital Experience and Technology
State Farm Digital Tools:
- State Farm mobile app with 4.8/5 stars
- 24/7 claim reporting
- Policy management and billing
- Roadside assistance through app
- Drive Safe & Save tracking
Allstate Digital Tools:
- Allstate mobile app with 4.7/5 stars
- Drivewise safe driving app
- QuickFoto Claim photo submissions
- Digital ID cards
- Allstate Rewards program
Both companies offer robust digital platforms, though State Farm’s app receives slightly higher user ratings.
Available Discounts Comparison
State Farm Discounts (19+ available):
- Multi-policy bundle: Up to 25%
- Good student: Up to 25%
- Driver training: Up to 20%
- Drive Safe & Save: Up to 30%
- Multi-vehicle: Varies
- Anti-theft device: Up to 23%
- Defensive driving: Varies
Allstate Discounts (12+ available):
- Multi-policy bundle: Up to 25%
- Good student: Up to 20%
- Drivewise: Up to 40%
- Safe driving bonus: Up to 5%
- Anti-theft: Up to 23%
- New car: Up to 10%
For additional money-saving strategies beyond these standard discounts, explore our guide on tips to get discount car insurance quotes.
Claims Handling and Financial Strength
Claims Processing Speed:
- State Farm: Average of 7-10 days for simple claims
- Allstate: Average of 10-14 days for simple claims
Financial Ratings:
- State Farm: A++ (AM Best), AAA (Standard & Poor’s)
- Allstate: A+ (AM Best), AA- (Standard & Poor’s)
Both companies maintain excellent financial strength, ensuring they can pay claims even during major catastrophes.
State-by-State Availability and Regulation
Both State Farm and Allstate operate in all 50 states, but their competitiveness varies by location due to state insurance regulations and local market conditions.
States Where State Farm Typically Offers Better Rates:
- Illinois, Texas, California, Florida, Ohio
States Where Allstate May Be Competitive:
- New York, Pennsylvania, Michigan, Georgia
Local agent availability also varies significantly by state and region.
Business Insurance Options
For business owners, both companies offer commercial coverage, though with different specializations:
State Farm Business Insurance:
- Commercial auto coverage
- General liability
- Business property insurance
- Workers’ compensation (in select states)
Allstate Business Insurance:
- Commercial vehicle coverage
- Professional liability
- Business property protection
- Cyber liability insurance
For detailed business vehicle coverage information, see our comprehensive business auto policy guide.
Special Considerations
State Farm Best For:
- Drivers seeking lower overall costs
- Customers prioritizing excellent customer service
- Young drivers (Steer Clear program)
- Multi-policy bundling opportunities
- Rural areas with strong agent presence
Allstate Best For:
- Drivers who want accident forgiveness
- Those interested in Drivewise rewards program
- New car owners (new car replacement)
- Urban areas with convenient locations
- Customers preferring digital-first interactions
Making Your Decision
Choose State Farm If:
- You prioritize lower premiums and better value
- Customer service quality is important to you
- You want access to more discount opportunities
- You prefer working with the market leader
- You’re bundling multiple policies
Choose Allstate If:
- You’re interested in accident forgiveness features
- The Drivewise program appeals to you
- You drive a newer vehicle and want replacement coverage
- You prefer their specific coverage options
- You’ve received a competitive quote from them
Tips for Getting the Best Rate
- Compare Quotes Annually: Insurance rates change frequently, so shopping around ensures you’re getting the best deal.
- Bundle Policies: Both companies offer significant multi-policy discounts when you combine auto, home, and other coverage.
- Maintain Good Credit: Your credit score significantly impacts your premium with both insurers.
- Take Advantage of Usage-Based Programs: Both Drive Safe & Save (State Farm) and Drivewise (Allstate) can provide substantial savings for safe drivers.
- Review Coverage Regularly: Ensure you’re not over-insured or under-insured as your circumstances change.
Conclusion
State Farm emerges as the winner in this comparison, offering much cheaper rates and better ratings than Allstate. With superior customer satisfaction scores, lower complaint ratios, and more competitive pricing, State Farm provides better overall value for most drivers.
However, individual circumstances matter significantly in insurance. Factors like your specific location, driving history, vehicle type, and coverage needs can influence which company offers you the better deal. We recommend obtaining quotes from both insurers to compare actual rates for your situation.
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, which ranked fourth in the study, while Allstate ranked lower.
Ultimately, the best insurance company is the one that provides adequate coverage at a price you can afford, backed by reliable customer service and efficient claims handling. State Farm’s combination of competitive pricing, excellent customer satisfaction, and comprehensive coverage options makes it the stronger choice for most consumers in 2025.
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