Allstate Car Insurance vs. State Farm Car Insurance (2024) (2024)

When comparing Allstate vs. State Farm, you’ll notice plenty of similarities. Both companies offer a wide range of coverage options and have excellent reputations in the auto insurance industry.

We at the MarketWatch Guides team took a deep dive into each company’s coverage options, rates, discounts and customer service to see how they compare. In this article, we’ll give you all the information you need to decide between Allstate and State Farm for your car insurance needs. We’ll also recommend the best car insurance companies based on our industry-wide review.

Learn more about our methodology and editorial guidelines.

Comparing Allstate and State Farm

When it comes to their reputations, both Allstate and State Farm have positive industry ratings from several organizations.

About Allstate

According to the National Association of Insurance Commissioners (NAIC), Allstate is the fourth-largest auto insurance provider in the U.S. behind State Farm, Geico and Progressive. The company wrote almost $33 billion in premiums in 2023 and holds 10.4% market share in the car insurance industry.

Allstate was founded in 1931, selling auto insurance through the Sears catalog. Allstate insurance policies are available nationwide, although discounts and add-on coverages vary by state.

About State Farm

The NAIC reported that State Farm owned 18.3% of the U.S. car insurance market in 2023, writing about $58 billion in auto insurance premiums during the year. State Farm boasts more than 19,000 insurance agents across the country. The company’s auto insurance coverage is available in all states, although it no longer sells new policies in Massachusetts or Rhode Island.

State Farm celebrated 100 years in business in 2022. The company offers affordable rates for most drivers and maintains excellent standing in the insurance industry at large.

Allstate vs. State Farm Auto Insurance: Coverage

It’s easy to purchase standard coverages from Allstate and State Farm. These common insurance products include bodily injury and property damage liability insurance, uninsured motorist protection, collision coverage and comprehensive coverage.

You’ll find some differences between Allstate and State Farm coverages when it comes to add-on policies. Allstate, for example, offers gap insurance that covers the difference between what your car is worth and what you owe on it in the event of a total loss. State Farm offers a similar benefit called Payoff Protector^®, but it’s only available for customers with a loan contract from State Farm Bank.

Allstate vs. State Farm: Usage-Based Insurance

Allstate’s telematics insurance program is called Drivewise®. Drivers can unlock savings simply by activating the program for free in the Allstate mobile app. Along with tracking safe driving behaviors that can earn discounts, Drivewise also includes a crash detection safety feature that helps drivers call for help after an accident. Keep in mind that unsafe driving habits may result in higher rates.

Drivewise offers driving challenges like keeping your speed below 80 miles per hour and avoiding hard braking for certain periods of time. Allstate’s usage-based insurance product is available in 49 states, although drivers in California and Alaska may not be eligible for all discounts.

is State Farm’s usage-based program. Those who sign up for the program get an instant discount, and drivers can save up to 30% by maintaining safe driving habits. Drive Safe & Save tracks how fast you accelerate and take corners, as well as how often you hit the brakes hard. The times of day you drive the most and how much you use your phone in the car are also monitored.

Drive Safe & Save is not available to drivers in California, Massachusetts or Rhode Island. North Carolina drivers may not be eligible for some Drive Safe & Save discounts.

Is Allstate Cheaper Than State Farm?

Simply put, Allstate is not cheaper than State Farm. In our 2024 review, we give State Farm an 8.8 out of 10 for cost, while Allstate receives only a 7.7.

State Farm’s average annual rate falls below the national average, while Allstate’s is significantly higher.

Allstate vs. State Farm Cost Estimates

Car insurance rates vary widely based on personalized factors such as age and driving history, but Allstate typically charges higher rates on average for many types of drivers. Here are a few cost estimates from Allstate and State Farm that cover a range of driver profiles. All estimates below are for annual full-coverage auto insurance policies.

Allstate vs. State Farm Discounts

Allstate and State Farm offer many of the same saving opportunities, such as discounts for safe drivers and for bundling your auto policy with a renters or home insurance policy. However, there are some differences in the discounts they offer as well.

State Farm doesn’t offer a pay-in-full discount, for example, but it does offer a discount for going accident-free for three continuous years. Allstate policyholders can take advantage of a paperless discount, while State Farm customers can’t.

Allstate vs. State Farm: Customer Experience

State Farm ranks highly in two key auto insurance studies. In the J.D. Power Insurance Shopping Study, State Farm ranked fourth among large insurers with 695 out of 1,000 possible points. The company came in fifth among large insurers in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study℠ with 891 out of 1,000 points.

Allstate ranked below average in the Insurance Shopping Study, with 664 out of 1,000 points. Allstate fared much better in the Auto Claims Satisfaction Study, ranking above the national average with a score of 882.

State Farm has a C- rating on the BBB due to many unresolved complaints on the platform, which you can learn more about in our full State Farm insurance review. Allstate has an A+ rating from the BBB, indicating that it’s good at responding to complaints in a timely fashion. Both providers have low customer ratings — 1.2 and 1.1 out of 5, respectively — but this is standard in the industry, especially among large insurers.

Keep reading: Allstate Insurance Review

Allstate or State Farm: The Bottom Line

You’ll notice a lot of similarities when comparing Allstate vs. State Farm. Both companies have long histories of providing quality auto coverage to all kinds of drivers. However, Allstate’s higher-than-average rates leave it well behind State Farm in our rankings of the best car insurance companies.

Recommended Car Insurance Companies

Finding the best rates is a matter of comparing car insurance quotes from multiple providers. The following insurance companies are ideal options to include in your search.

Geico: Best for Budget-Conscious Drivers

Geico is the third-largest auto insurer in the U.S. according to the NAIC. The company holds an A+ rating from the BBB and an A++ financial strength rating from AM Best. Low rates and a variety of discounts make Geico an affordable option, which is why we named it the Best for Budget-Conscious Drivers in our 2024 industry-wide review.

Keep reading: Geico Insurance Review

Travelers: Best for Most Drivers

We give Travelers a 10 out of 10 for coverage options for its wide range of offerings, which include new car replacement coverage, accident forgiveness and more. The company offers full-coverage car insurance policies at an average cost of $1,692 per year, which is 37% cheaper than the national average of $2,681. Travelers has been in business for over 150 years and boasts an A++ financial strength rating from AM Best. Travelers’ reliability, coverage and affordability earned it our Best for Most Drivers award.

Keep reading: Travelers Insurance Review

State Farm vs. Allstate: FAQ

Below are some frequently asked questions about State Farm vs. Allstate:

Compare Car Insurance Companies: Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
• Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
• Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
• Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.

Our credentials:

• 800 hours researched
• 130+ companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.