Allstate vs. State Farm: Which is Best for You?

Which company wins in the battle between Allstate and State Farm? Well, there's no easy answer. Why?

The Quick Verdict Before You Read Further

State Farm will be the superior choice for most drivers based on lower premiums, higher customer service scores, and better claims process. In case money savings and efficient customer service matter the most, State Farm remains a better choice overall.

Going for Allstate would be smarter in case you have customized needs and can manage all operations via an app, or when you are considered high-risk and want better premiums than State Farm offers you.

There is no universal answer to what company is better, as many factors determine whether it will work in your favor. Driving experience, credit score, preferred coverage, and geographical location all affect it.

Allstate vs. State Farm at a Glance

Auto Insurance Rates: Which Company Costs Less?

When it comes to premium prices, State Farm offers much lower rates that suit most Americans. The national average cost for a full auto insurance coverage is about $1,487 yearly for State Farm, whereas Allstate charges almost twice as much – around $2,609 annually.

However, your actual rate will depend on many factors. Let's take a look at the prices offered by State Farm versus Allstate depending on your individual profile:

Good Drivers with Clean Records

Here, the winner is clear. Individuals with excellent credit scores who have not committed any offenses have annual premiums of approximately $597 for liability coverage when using State Farm. On the other hand, Allstate offers annual rates of $1,158 for this type of insurance.

Teen Drivers

Young individuals get charged even higher premiums by Allstate than those who have good credit and no violations. For example, an individual aged 18 will have annual premiums of $1,811 if he/she uses State Farm insurance services. At Allstate, the cost of coverage amounts to $3,399 on average.

Drivers with a Speeding Ticket

Both companies increase their premiums for one speeding offense. However, Allstate is twice as aggressive as State Farm, with an average annual premium of $3,073 for one offense against a figure of only $1,616 from State Farm.

Drivers with a DUI or Poor Credit

One situation where Allstate is a better choice is when the driver has a DUI offense on his/her record. The average annual premium charged by Allstate in such cases is $3,875 while State Farm charges $4,402.

"State Farm has the most extensive network of agents in the nation, making it the best choice for those who wish to maintain a longstanding relationship with their local agent and not have to contend with the call centers. This makes State Farm's offerings slightly more personal, hence appealing to families who are bundling home and auto insurance and drivers seeking a human face they can reach."

Jordan Blake, Director of Communications and Operations, Shoreline Public Adjusters, LLC

Discounts: Who Gives You More Ways to Save?

Discounts offered by both insurance providers are quite similar; however, Allstate's discount programs are slightly superior and diverse.

Allstate Discounts Worth Knowing

Drivewise is the name of the telematics program used by Allstate Insurance. The program monitors your driving behaviors and offers discounts in the form of cash back or points for safe driving.

Milewise is a pay-as-you-drive scheme that will come in handy if you do not travel much. You will pay a flat fee and additional charges for each mile you drive.

The other discount options include Early Signing Discount for locking down your policy at least seven days before it kicks in, Responsible Payer Discount for always paying on time, and the Smart Student Discount for students who qualify for certain criteria.

State Farm Discounts Worth Knowing

Similarly, State Farm also incorporates the telematics technology through its Drive Safe & Save program, which provides policyholders up to 30% off their insurance premiums, rather than giving them cash back like Liberty Mutual does. This could mean a significant reduction if you drive consistently and carefully.

In addition, State Farm also offers the Accident Free Discount Program for those who have been accident-free, the Good Student Discount for the benefit of student drivers, and discounts for taking part in a defensive driving course.

The two companies offer the same standard discounts such as multiple vehicles and multiple policy discounts and discounts for vehicles equipped with safety devices.

Pro Tip:

In deciding to use the telematics technology, ensure that your driving behavior will earn you rewards. Should you find yourself driving at night, aggressive braking, and long-distance driving, the telematics technology is likely to make you incur higher costs instead of reduced ones.

Coverage Options: Which Company Offers More?

Where it comes to standard coverages such as liability, collision, comprehensive, uninsured motorist, and others, they are pretty much alike. However, when it comes to additional coverage, things look a bit different.

The thing is that Allstate offers a wider choice of coverages that can help plug gaps in your insurance coverage that you did not even realize were there before.

Allstate's Standout Add-Ons

New Car Replacement

stands out among other additional coverages since in case your car that is up to two models old becomes totaled, you will get not only its market price, but also the money to buy a brand new one.

Mechanical Breakdown Insurance

This coverage expands basic auto insurance beyond common accidents, covering such aspects as severe damage to components and systems as well as major repairs.

Accident Forgiveness

will protect you from rate hikes in case you make a mistake during the first six months of driving.

Gap Insurance

As with total loss coverage, the difference between what your car is actually worth and what you owe on a car loan or lease will be covered here.

Ride for Hire Coverage

It is the perfect solution to the coverage hole in case you drive a car for ride-sharing services such as Uber or Lyft.

Custom Equipment Coverage

It will help protect upgrades that you install on your car, such as custom wheels, audio systems, and any other upgrades.

State Farm's Coverage Options

State Farm offers solid coverage for all the necessities, but it has fewer options for add-ons compared to other insurers. State Farm provides rideshare insurance and travel expenses coverage, which will cover your meal and accommodation costs when you get into an accident away from your home. However, if you need mechanical breakdown insurance or new car replacement, State Farm doesn't offer them.

"If you want to use some digital features, Allstate might be the best choice for you. This insurer provides you with all the necessary advanced digital features that will allow you to manage your insurance policy using your computer or smartphone. Besides, accident forgiveness and new car replacement are two benefits that make Allstate even more attractive."

Jordan Blake, Shoreline Public Adjusters, LLC

Customer Service and Claims Handling

• That’s where State Farm truly distinguishes itself. According to the J.D. Power 2025 U.S. Auto Insurance Study, State Farm ranks higher than the industry average in almost all regions of the United States. Allstate, on the other hand, ranks lower than the industry average in most regions.

• Similarly, in the J.D. Power 2025 U.S. Auto Claims Satisfaction Study, State Farm once again ranks above average, suggesting a better and smoother claims process. Allstate's ranking is close to the industry average but still lags behind State Farm's.

• According to complaint statistics published by the National Association of Insurance Commissioners (NAIC), State Farm has significantly fewer customer complaints compared to its market share, while Allstate receives relatively more complaints than its market share.

• However, the reason for such disparities lies in the way both insurers operate when it comes to claims management. As Blake puts it, "State Farm tends to be more localized in terms of claims management via their agent network, thus ensuring more consistency. On the other hand, Allstate has heavily invested in automation, and their online claims tool makes the entire process faster in cases involving smaller losses. However, any complication in the claims process can create friction."

• In simple terms, if you present a clear claim, then the technology-based process at Allstate will actually be quicker for you. However, should there be any complications, having an agent in your vicinity, similar to State Farm, often ends up being in your favor.

Pro Tip:

Before deciding to go with one of the insurers, ring the claims department and ask a question. Take note of the response time and the extent of explanation provided before determining if they gave you confidence that the response would be helpful. This is much more revealing than a rating found online.

Digital Tools and App Experience

The companies have invested considerable effort into their technology-based systems, however, with varying objectives.

The Allstate app has numerous features and is ranked highly. One can report a claim using photographs and submit documents, access their electronic insurance card via Digital Glovebox, seek out roadside help, and review driving behavior via Drivewise all without needing to call the company.

The State Farm app and website are also designed with great usability in mind, but it is done with a completely different mentality behind it. The majority of features on there help you communicate with your local agent, not do without it. The assumption is that you use some simple online services yourself, but you still have your personal agent.

If self-service is what you seek for when it comes to insurance, then Allstate is better here. On the other hand, if you feel like talking to someone, you will enjoy State Farm much more.

Where Each Company Is Available

Allstate Insurance Company can be found in all 50 states of the US as well as Washington, D.C., which means that it is accessible to any driver.

State Farm is available in 48 states excluding Massachusetts and Rhode Island. This probably will not play an important role for most of you.

Who Should Choose Allstate?

Allstate is probably the more suitable choice if:

• You need niche coverage such as new car replacement, mechanical breakdown insurance, or custom equipment coverage

• You drive infrequently and will be able to take advantage of the Milewise pay-as-you-go plan

• You've had a DUI or bad credit history and are finding it difficult to secure reasonable quotes

• You enjoy the ease of using an all-applications policy that requires little interaction with an agent

Who Should Choose State Farm?

A State Farm policy is more sensible when:

• You’re focused on securing the lowest auto insurance premium possible

• Reliability in customer service and a trustworthy claims experience is important to you

• You’re looking to include a teenager as an additional insured and control costs

• You require a committed local agent for personalized guidance

Frequently Asked Questions

Is Allstate or State Farm cheaper?

Mostly, State Farm will cost much less. The average annual premium cost for its full coverage is much lower compared to Allstate and also to the average national premium cost. An exception may occur only in cases when you have a DUI or poor credit history when Allstate becomes more competitive.

Which is better for good drivers?

When a driver does not have any driving violations and has a good credit rating, State Farm will offer him lower rates compared to Allstate. Still, do not forget that there can be differences in premiums depending on your particular situation.

Which is better for high-risk drivers?

It all depends on the specifics of your case. If you have either a DUI or poor credit history, then Allstate may provide you with better premium costs. If you face some troubles like a speeding ticket or an at-fault accident, you will likely pay less with State Farm.

Which company has better customer service?

The State Farm insurance company always gets better ratings when it comes to the level of satisfaction and claims process. According to JD Power research, the company consistently ranks above the average for the industry, while the Allstate company usually receives lower ratings compared to competitors in terms of customer satisfaction.

What's the difference between Drivewise and Drive Safe & Save?

These are telematics-based programs aimed at promoting safer driving habits among users. However, their approach is slightly different. Allstate Drivewise allows earning cash rewards or loyalty points based on the driver's driving style, while State Farm Drive Safe & Save provides an opportunity to save 30% on the insurance premium.

Final Thoughts

The comparison between Allstate and State Farm cannot declare a clear winner because there is no universal formula for selecting an auto insurance provider, as it is determined exclusively by individual circumstances.

For most motorists, State Farm provides cheaper premiums and superior customer care service, which makes it the preferable option for those prioritizing price and convenience. At the same time, Allstate remains a favorable option for individuals who expect additional benefits from their coverage, such as premium add-ons, a feature-loaded mobile application, and lower prices following traffic violations.

Before finalizing your decision, obtain real quotes, analyze the complaints statistics for your state, and examine the claims process personally. In the end, the optimal auto insurance policy is neither the least expensive nor the most extensive in terms of its coverage but rather the one that works under any conditions.