Allstate vs. Direct Auto: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for car insurance, Direct Auto offers less expensive prices than Allstate
• Allstate offers more discounts than Direct Auto Insurance
• Direct Auto offers more affordable premiums for residents in Florida and Mississippi

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Allstate vs. Direct Auto: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering hefty discounts, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to Allstate or Direct Auto as potential options, but which company has cheaper prices for auto insurance?

Looking at nationwide averages, Direct Auto has average rates that are about 15% per month more affordable than those from Allstate.

However, that doesn't mean Direct Auto will necessarily be cheaper than Allstate for every driver. Insurance companies vary their rates depending on things like how clean your driving record is, how old you are, how good your credit score is, where you live, and all sorts of other factors, so premiums will change quite a bit from person to person.

So, if you want to find out which of Allstate or Direct Auto is really the best for you, keep reading to see average rates for each carrier broken down by a bunch of different rate factors.

Allstate or Direct Auto: Average Car Insurance Rates by State

Allstate and Direct Auto only compete against each other in two states, with Direct Auto offering less expensive prices to the average driver in all of them. Mississippi has the most noticable difference, where Direct Auto premiums are over 70% more affordable than car insurance rates at Allstate.

There's a lot more that goes into your auto insurance bill than just where you call home. Continue reading to learn more about how other factors will affect your rates.

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Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance prices of any group on the road. It's typically because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

That being said, that doesn't mean teen drivers can't still save money on their insurance. As you can see above, teens who use Direct Auto save $85 a month compared to those who use Allstate. It's worth noting that Allstate offers auto insurance in 47 different states compared to Direct Auto's two, which can skew the average premiums a bit, but the difference here is still considerable.

Even so, with both carriers, you'll see your prices lower significantly once you turn 25. For example, average premiums for Allstate policyholders reduce nearly $300 and Direct Auto's rates drop more than $200 over that time.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest premiums you can find.

When looking at Allstate and Direct Auto specifically, which company is best for retired drivers? Direct Auto gets the edge, with prices for drivers 65 and older $28 cheaper than the national average for Allstate.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are normally more expensive for single drivers than they are for married policyholders? This usually boils down to married drivers having more than one car on their policy -- something lots of car insurance companies will reward with discounts.

When it comes to relationship status, Direct Auto is the clear winner for single policyholders, with premiums around $33 per month less expensive than Allstate, on average. The advantage for married couples with Direct Auto is also obvious, where drivers save almost 15% a month.

Allstate vs. Direct Auto: Average Rates by Gender

You may not know, but insurance is generally cheaper for women than it is for men. This is because men are statistically more likely than women to get into an accident or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher prices.

Women usually pay about $10 per month less than men with Allstate, and around $4 less with Direct Auto.

Looking at the data for each carrier specifically, Direct Auto offers the most affordable average rates for both men and women. On average, male drivers save about $31 a month and women save about $26 with Direct Auto compared to the average Allstate policyholder.

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Allstate or Direct Auto: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, auto insurance isn't the easiest topic to understand. There are so many different terms and limits that it can make it pretty confusing to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers if you cause a collision) and full coverage (which typically refers to having comprehensive and collision coverages alongside what you get with a liability policy).

If you're looking for state minimum liability limits, Direct Auto normally offers more affordable premiums of $96 compared to Allstate's $108. When it comes to full coverage policies with similar limits, Direct Auto again has the edge, with policies around $45 per month less expensive than Allstate, on average.

Is Allstate or Direct Auto Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

It's no secret secret that at-fault accidents and tickets lead to higher rates, but which company -- Allstate or Direct Auto -- has the lowest prices for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Allstate policyholders can expect their premiums to go up an average of $27 a month if they get a ticket, while Direct Auto generally raises rates about $38 per month, on average.

But Direct Auto has more affordable prices for drivers in both categories, offering rates that are 8% and 1% cheaper, respectively, compared to Allstate.

Which Company is Best for Drivers After an Accident?

Allstate drivers who get in an accident can expect to see their prices rise by over 30%, while those who have insurance through Direct Auto will see around a 25% increase.

Overall, the more affordable premiums come from Direct Auto, with monthly rates averaging $190 compared to Allstate's $229.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or speeding ticket when it comes to your auto insurance bill. Allstate drivers usually see a 31% increase in their insurance premiums after a DUI charge, while Direct Auto will usually climb prices by about 13%.

Direct Auto has the overall cheapest rates for drivers with a DUI on their records at $165 a month, but it's worth noting that Allstate's average rates come from 47 states compared to just two for Direct Auto, so the data may be skewed slightly.

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How does Credit Score Impact Allstate and Direct Auto Rates?

Often times, your credit score can be used as one of the variables to calculate your monthly car insurance prices. Certain states and carriers do not allow for credit score to be used as a rating factor, but it might come into play for quite a few policyholders.

Insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with less expensive premiums.

Looking at Allstate and Direct Auto specifically, which one has the lowest prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with Allstate for an "excellent" credit score. Drivers with "excellent" credit can save over 10% compared to Direct Auto, while those with "good" scores can expect to see better savings from Direct Auto -- around $5 or 3% cheaper than Allstate each month.

Which Company is Best for Drivers with Bad Credit?

Direct Auto typically offers lower rates than Allstate when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay about $32 a month less with Direct Auto compared to Allstate, and those with "poor" scores typically save an average of around $96 monthly.

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Is Allstate or Direct Auto Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in your monthly premiums. Normally, the more miles you drive, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Direct Auto charges. However, there's a small difference in monthly rates for Allstate, with policyholders who drive the least paying about $3 less every month compared to those who drive 12,000 miles annually. Still, Direct Auto is the more affordable option for drivers in both categories.

Allstate vs. Direct Auto: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can play a considerable role in how much you pay for auto insurance. Generally, if you live in an urban area with more cars on the road, you'll pay a little more for insurance, while the opposite is true for people in rural areas.

When comparing these two carriers side-by-side, Direct Auto usually comes out as the less expensive option for drivers in rural and suburban areas, while Allstate wins in urban areas.

In urban areas, Allstate's average rates are around $222 per month compared to Direct Auto's $226. People in suburban areas pay about $168 with Direct Auto compared to Allstate's $199 per month. If you live in a rural area, you can expect to pay around $116 a month with Direct Auto compared to Allstate's $174.

Allstate vs. Direct Auto Discounts

You want to save as much money as possible, right? The best way to do that is by taking advantage of as many car insurance discounts as you can.

But with what seems like a million different discounts out there, it can be hard to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you're eligible for.

In the section below, we've broken down all of the different discounts offered by both Allstate and Direct Auto so that you can see which carrier offers the most discounts and see which ones you might be able to take advantage of.

Allstate knocks Direct Auto out of the park when it comes to the sheer number of discounts available, offering 40 different discounts to Direct Auto's 19.

There are a couple discounts both companies offer, but Allstate also offers agency transfer discounts, alert driving discounts, annual mileage discounts, and more that Direct Auto does not.

On the flip side, Direct Auto has a couple unique discounts of its own -- bike policy discounts, group discounts, military discounts, and more.

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Final Thoughts: Is Allstate or Direct Auto Best for You?

You've seen the effect certain factors have on your auto insurance and the different discounts carriers offer. That's all well and good, but at the end of the day, which insurance carrier is the best one for you, your vehicle, and your wallet?

Direct Auto might be best for you if....

• You don't have any speeding tickets, DUIs, or at-fault collisions on your record.
• You're looking for more protection with "full coverage" car insurance.
• You and your spouse are buying insurance together.

Allstate might be best for you if...

• You are considering moving to another state -- Direct Auto Insurance only offers policies in FL and MS.
• You care about discounts (Allstate offers the most).
• Your home is in a busy urban area.

We hope this guide helps you get a better idea of the difference between Allstate and Direct Auto. We also hope we've given you the information you need to make the best decision when it comes to your auto insurance.

At the end of the day, the best way to make sure you're getting the best deal on your car insurance policy is to compare quotes from several companies, not just Allstate and Direct Auto. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of top insurance carriers in your area, all in just a few minutes.

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Allstate vs. Direct Auto FAQs

Is Allstate or Direct Auto cheaper?

Looking just at the national average prices, Direct Auto is the cheaper of the two companies, offering average rates of $170 a month compared to $199 for Allstate. That being said, Direct Auto won't necessarily be the cheapest company for everyone, since there are a variety of different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, Allstate or Direct Auto?

Sadly, the answer truly is "it depends.". No single carrier is "better" for each driver -- it all depends on what your unique auto insurance profile looks like. For example, Direct Auto offers more affordable premiums for drivers with a recent DUI, while Allstate is cheaper for drivers with excellent credit.

Why do Allstate and Direct Auto offer me different rates?

Insurance carriers take a look at several different factors when calculating the prices they charge policyholders. Variables like gender, where you live, your driving record, age, and sometimes even things like your credit score can all be taken into consideration. Both Allstate and Direct Auto use different formulas, so each one will most likely offer different premiums. The only real way to see which company is the most affordable for you is by comparing personalized quotes from multiple different companies.

How do I know if Allstate or Direct Auto is right for me?

The only way to find the auto insurance carrier that's right for you is by getting quotes from a handful of carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your information once and you'll get free quotes from dozens of the best car insurance companies in your area. That way, you can guarantee you're getting the lowest rate. And who knows, the best company for you might not be Allstate or Direct Auto at all!

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Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.