Allstate vs. State Farm: Which Company Is Best for You?

Allstate and State Farm are similar in market share, available add-on coverages, online tools, and claims processes. But State Farm almost always has lower average premiums than Allstate — including for teens and drivers with imperfect driving records. State Farm’s average monthly rate for liability-only and full-coverage policies are $60 and $112, respectively.

Allstate offers some drivers better rates in certain circumstances. For example, drivers with poor credit scores and people in California, New York, and Ohio can typically find lower rates with the insurer.

Always remember the best insurance company for you is the one that caters to your coverage and budget needs, so it’s worth comparing personalized quotes from both companies before purchasing your next policy.

Key Takeaways:

• State Farm is cheaper than Allstate by more than $50 per month in most states.
• Allstate and State Farm have nearly identical discounts and savings incentives.
• Both insurance companies offer a telematics app that can earn good drivers discounts.

Allstate vs. State Farm: Which Has Cheaper Car Insurance Rates?

When comparing auto insurance rates, keep in mind that prices will always vary from driver to driver based on factors like the type of cars on your policy, your age and location, and whether you add optional policy features like comprehensive coverage or medical payments coverage.

Let’s take a look at how average rates compare between the two insurance giants.

At the end of the day, State Farm offers the cheapest average liability-only and full-coverage policies. Most drivers will spend 31% less on a liability-only policy and around 50% less for full coverage with the insurer than with Allstate.

However, Allstate may be the better option for drivers in specific states like California or drivers with poor credit histories. State Farm is typically cheaper for drivers with average or better credit scores and clean driving records.

Keep in mind that these broad averages aren’t usually the best indicator of which company is best for you. Because so many factors affect your auto insurance premiums, it’s best to look at rate breakdowns for more specific driver profiles.

Let’s take a look at a few of the most common profiles, such as by state, age, driving record, and more.

Compare State Farm and Allstate Car Insurance Rates by State

Where you live plays a big role in how much you pay for auto insurance. Each state regulates insurance differently, so your home state has one of the largest effects on your potential rates.

The table below shows State Farm and Allstate’s average rates by state, including Washington, D.C. It also highlights the cheapest car insurance company in each state.

State Farm is the cheapest insurance company in nearly every state — and it’s cheaper by $100 or more in 14 states. It’s also worth noting that Florida has one of the highest discrepancies, with State Farm offering monthly policies for $221 less than Allstate.

But if you live in California, New York, or Ohio, Allstate offers the cheapest average rates. And the difference is much more minor in New York and Georgia, with just a $10 and $4 monthly difference, respectively, between the two companies.

Allstate vs. State Farm: Compare Rates by Driver Age

Age plays a big role in determining your car insurance rates. Young drivers tend to have higher auto insurance rates than older drivers because they have a much higher risk of getting into accidents.

But as drivers age and gain more experience behind the wheel, rates drop around age 25 and stabilize around age 40. Older drivers may see their rates increase or decrease depending on the company they choose and their driving habits.

The table below shows State Farm and Allstate rates for different ages and highlights how rates increase or decrease based on age categories.

State Farm has the lowest average rates for all driver age categories. The difference is an astounding 40% for teen drivers, and the gap continues to grow as you get older — approaching nearly 50% by the time you reach retirement age.

Let’s take a closer look at how rates vary for two of the most affected age groups — teens and seniors.

Which company has lower rates for young drivers?

Young drivers pay the highest rates because teens are statistically more likely to be involved in a fatal car accident than older adults. When comparing Allstate to State Farm, State Farm offers average monthly savings between $76 and $163 for drivers 25 years old and younger.

Which company has lower rates for senior drivers?

Older drivers often get cheaper car insurance rates than other adults because they tend to drive less and have more experience behind the wheel, which often translates to lower accident rates. State Farm is a better choice for senior drivers, with an average monthly rate that’s $72 cheaper than Allstate.

State Farm vs. Allstate: Which Is Better for Drivers with Bad Records?

People with clean driving records tend to get better rates than drivers with recent infractions. Speeding tickets, driving under the influence (DUI) convictions, at-fault accidents, and other traffic violations generally drive up insurance costs, leading to higher monthly premiums.

The table below compares Allstate and State Farm rates for different driving records.

State Farm again sweeps all four categories, but we’ll go into more detail on how rates vary for drivers with a speeding ticket, an at-fault accident, and a DUI in the sections below.

Which company is cheaper for drivers with a speeding ticket?

State Farm is the cheapest company for liability-only policies for drivers with a speeding ticket on their record, with average rates coming in around 45% less than Allstate.

Speeding is one of the major factors that causes car accidents, which is why insurers increase premiums when drivers engage in this risky behavior. Getting one ticket typically increases your insurance rate by 37%, according to Compare.com data.

Which company is cheaper for drivers after an accident?

State Farm remains cheaper for drivers with an at-fault accident on their record — average rates remain around 45% cheaper than Allstate.

When you’re in an at-fault accident, your insurer pays for the damages you cause, which is why insurers typically raise your premiums to compensate for the financial loss. The average driver sees their rates increase by 44% after an at-fault accident, according to Compare.com data.

Which company is cheaper for drivers with a DUI?

State Farm finishes its sweep by offering rates that are nearly half the cost of Allstate’s for drivers with a DUI on their records. Driving under the influence is one of the most dangerous driving habits, and insurance companies often penalize these drivers with high rate increases. Compare.com found that the average driver experiences a rate increase of around 94% after a single DUI — however, neither Allstate nor State Farm customers experience quite a severe rate hike.

Allstate and State Farm: Compare Rates by Credit Score

When setting policy prices, car insurance companies look at different rating factors, including your credit history. In most cases, drivers with higher credit scores receive lower rates.

Insurers use your overall credit history to create something called a “credit-based insurance score” to predict your likelihood of filing a claim, according to the National Association of Insurance Commissioners (NAIC), but states like California, Hawaii, Massachusetts, and Michigan don’t allow the use of credit to set auto insurance rates.

The table below shows how much you’ll pay for car insurance with Allstate and State Farm based on your credit score.

The average driver with an “excellent” credit score typically pays around 62% less than someone with a “poor” score, so let’s take a look at how State Farm and Allstate stack up.

Which company is best for drivers with good credit?

State Farm is cheaper than Allstate for drivers with both excellent and good credit scores. Its average rates are between 45% and 50% cheaper than Allstate for drivers in these categories.

Which company is best for drivers with average credit?

State Farm has the lowest rate for drivers with average credit, but the difference isn’t quite as stark as it is with higher scores. State Farm charges the average driver with a middle-of-the-road credit score about 38% less than Allstate.

Which company is best for drivers with bad credit?

Allstate flips the script and comes out as the cheapest company for drivers with poor credit. Its average rates are around 12% cheaper than State Farm in this category.

How State Farm and Allstate Compare for Discounts

Auto insurance discounts offer more ways to save on car insurance. Most car insurance companies check your discount eligibility during the quote process.

Some discounts are recurring, such as multi-policy discounts when you bundle car insurance with renters insurance, life insurance, or homeowners insurance. Others — like claim-free or safe driver discounts — can only be earned over an extended period of time.

Keep in mind that discount offerings and savings vary by insurer. For instance, State Farm may offer a discount in North Carolina, but that same discount might not be available in Hawaii. You can usually find a list of discounts on the insurer’s website.

It’s probably no surprise that both of these auto insurance giants offer a wide range of discounts, but at the end of the day, Allstate comes out with the slight edge in total number of savings opportunities.

Both companies offer discounts for things like completing a defensive driving course, signing up for auto pay, and paying your entire premium up front, but only Allstate has savings for signing up for your new policy in advance.

Which Company Has Better Perks?

Both State Farm and Allstate offer additional perks to help lower rates for qualified drivers, some of which may be better for specific drivers.

Allstate has a pay-per-mile program called Milewise, which offers a low monthly premium plus a per-mile rate to substitute for a traditional insurance policy. Additionally, Allstate Drivewise is a telematics program in which drivers receive an enrollment discount and potentially have their rates discounted based on their driving habits.

State Farm has a telematics program of its own. Drive Safe & Safe uses either a mobile app or a plug-in device to monitor your driving habits, which could result in a rate decrease (or an increase in certain states). Young drivers may also qualify for its Steer Clear app-based program that rewards them after they complete a program, practice driving, and remain claim-free.

What Do Allstate and State Farm Customers Have to Say?

It’s a good idea to look at customer reviews before picking your next auto insurer. You’ll want to check out each company’s positive and negative reviews to see where it stands out and where it falls short.

You can look at reputable websites to compare Allstate and State Farm’s (and many other insurers’) customer ratings, such as Trustpilot, the Better Business Bureau (BBB), and NAIC.

Keep in mind that it’s common for many unhappy customers to voice their opinions, which is why you’ll often see low customer satisfaction scores or high complaint index ratings for many insurance service companies — even for some of the best car insurance companies in the country.

Let’s look at how State Farm and Allstate score on popular customer review sites.

Both insurers score similarly across some of the most popular review sites, but you should still comb through the reviews to understand what aspects of their businesses get poor customer feedback. For instance, Allstate customers tend to report less than satisfactory customer service, while longtime State Farm customers tend to have issues with increased rates and nonrenewals.

Below are examples of recent customer reviews left on some of the websites.

Allstate customer reviews

State Farm customer reviews

Allstate vs. State Farm FAQs

As you compare Allstate and State Farm car insurance policies, use these answers to frequently asked questions to identify the best option for your needs.

Is Allstate better than State Farm?

Allstate and State Farm are similar when it comes to discounts, customer satisfaction scores, and coverages available. Although Allstate is one of the largest insurance companies, State Farm has a higher market share. State Farm also has the highest financial strength rating, according to AM Best, exceeding Allstate’s.

Is Allstate good at paying claims?

Yes. Allstate has an A+ financial strength rating from AM Best, which means it’s in a “superior” financial position to pay policyholder claims. However, some current and former policyholders report difficulty with the claims process, specifically communication between Allstate customer service agents.

Is State Farm the most expensive insurance?

Although car insurance rates will vary from insurer to insurer, State Farm tends to be cheaper than Allstate for a wide variety of types of coverage and drivers, including drivers with good credit scores and drivers who need full-coverage policies.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. NAIC, “Allstate Fire & Cas Ins Co National Complaint Index Report,” Accessed December 9, 2023.
2. NAIC, “State Farm Fire & Cas Co National Complaint Index Report,” Accessed December 9, 2023.
3. NAIC, “2022 Market Share Report For Property/Casualty Group and Companies by State and Countrywide,” Accessed December 9, 2023.
4. AM Best, “AM Best Revises Outlooks to Negative for State Farm Mutual Automobile Insurance Company and Certain Subsidiaries,” Accessed December 9, 2023.
5. AM Best, “AM Best Takes Various Credit Rating Actions on The Allstate Corporation and Its Key Subsidiaries,” Accessed December 9, 2023.
6. IIHS, “Teenagers,” Accessed December 9, 2023.
7. IIHS, “Speed,” Accessed December 9, 2023.
8. NAIC, “Credit-Based Insurance Scores,” Accessed December 9, 2023.
9. Experian, “Which States Restrict the Use of Credit Scores in Determining Insurance Rates,” Accessed December 9, 2023.