is allstate cheaper than state farm
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Is State Farm Cheaper Than Allstate? A Professional Insurance Agent’s Perspective
As an insurance agent and the owner of Blake Insurance Group, I frequently help clients compare policies from different providers to find the best coverage for their needs. Two of the biggest names in the industry—State Farm and Allstate—are often at the center of these discussions. While cost is a major factor, it’s important to evaluate the coverage options, discounts, claims process, customer service, unique features, availability, and reputation of both companies before deciding which one offers better value.
Coverage Options: State Farm Vs Allstate
Both State Farm and Allstate provide a wide range of coverage options for auto, home, life, and other types of insurance. State Farm is known for its customizable policies, allowing policyholders to tailor their coverage with add-ons such as rideshare insurance, rental car reimbursement, and roadside assistance.
Allstate, on the other hand, offers unique options like Accident Forgiveness, New Car Replacement, and Safe Driving Bonus programs. These features can be beneficial for certain drivers but may come at an additional cost.
Pricing and Discounts
When it comes to affordability, State Farm tends to have lower base premiums in many states compared to Allstate. However, the final price you pay depends on several factors, including driving history, vehicle type, and location.
Both insurers offer multiple discounts to help lower costs:
State Farm Discounts:
- Drive Safe & Save™ (usage-based discount)
- Steer Clear® (for young drivers)
- Multi-policy and multi-vehicle discounts
- Good student discount
- Accident-free discount
Allstate Discounts:
- Drivewise® (usage-based discount)
- Safe Driving Bonus
- New Car Discount
- Early Signing Discount
- Responsible payer discount
For safe drivers, State Farm’s Drive Safe & Save™ program can offer significant savings, while Allstate’s Drivewise® program also rewards good driving habits. The availability and amount of savings vary by state and individual driving behavior.
In my experience, State Farm typically offers lower rates. Their average annual premium for full coverage auto insurance is about $1,935, compared to Allstate’s $2,205. Both companies have a variety of discounts, but State Farm’s safe driver and multiple policy discounts can lead to significant savings
Claims Process
The ease of filing and settling a claim is a crucial factor in choosing an insurer. State Farm has a reputation for its fast and efficient claims process, with many customers praising its straightforward online claims system and strong agent network that provides local support.
Allstate also provides a user-friendly claims experience, but some customers report that its process can take longer than expected. The Allstate Claim Satisfaction Guarantee allows policyholders to receive a refund on their premium if they’re dissatisfied with their claim experience, which is a unique offering in the industry.
Customer Service
Customer service is where State Farm consistently ranks higher than Allstate. According to J.D. Power’s Auto Insurance Customer Satisfaction Study, State Farm often outperforms Allstate in customer service, primarily due to its large network of local agents and more personalized service.
Allstate, while offering a mix of local agents and digital customer service, tends to receive mixed reviews, with some customers citing longer wait times and occasional communication issues. However, Allstate provides a 24/7 customer service hotline and robust mobile app support, making it easier for tech-savvy customers to manage their policies.
Unique Features
Each company has distinct features that set them apart.
State Farm:
- Drive Safe & Save™ program tracks driving habits for discounts.
- State Farm Bank® offers financial products alongside insurance.
- A+ rated customer satisfaction and financial strength.
Allstate:
- Drivewise® provides real-time feedback for safer driving.
- Accident Forgiveness prevents rate hikes after a first accident.
- Milewise® pay-per-mile insurance for low-mileage drivers.
If you’re a low-mileage driver, Allstate’s Milewise® program might be an attractive option, as it allows you to pay based on the miles you drive.
Availability
State Farm is the largest auto insurer in the U.S., offering coverage in all 50 states with a massive agent network. Allstate is also widely available, but its pricing and policy options can vary significantly depending on the state. If you live in a rural area, you may find that State Farm has better agent availability compared to Allstate.
Reputation and Reviews
Both insurers are financially stable and highly rated by industry watchdogs like AM Best and J.D. Power. State Farm generally receives higher marks for customer satisfaction and claims service, while Allstate’s innovative features and discount programs make it appealing to certain customers.
However, it’s important to note that both companies have mixed customer reviews, particularly when it comes to rate increases after claims. Policyholders who remain accident-free tend to be happier with their insurers than those who have had to file multiple claims.
Final Verdict: Which is Cheaper?
From a cost perspective, State Farm tends to offer lower rates for most drivers, particularly those with clean records or young drivers looking for good student discounts. However, Allstate’s discount programs can make it competitive, especially for safe drivers using Drivewise® or low-mileage drivers opting for Milewise®.
The best way to determine which insurer is cheaper for your specific situation is to get personalized quotes from both and compare coverage side by side. At Blake Insurance Group, we help clients navigate these choices, ensuring they get the best value for their insurance needs.
If you’d like a free quote or insurance consultation, feel free to reach out to us—we’re here to help you make an informed decision!
State Farm vs. Allstate - Frequently Asked Questions
Yes, State Farm is typically cheaper than Allstate for most drivers. State Farm's average annual premium for full coverage auto insurance is about $2,167, compared to Allstate's $2,605. For minimum coverage, State Farm averages $674 per year, while Allstate averages $840.
While State Farm is generally less expensive, Allstate can be cheaper for drivers with very poor credit scores (below 580). Additionally, Allstate may offer better rates in certain states like California, New York, and Ohio.
State Farm tends to be cheaper for home insurance as well. The average annual home insurance rate for State Farm is $1,356, while Allstate's average is $1,594.
Both State Farm and Allstate offer a variety of discounts, but State Farm typically provides deeper policy discounts. State Farm's average discount is about 15%, compared to Allstate's 8%.
State Farm generally ranks higher in customer satisfaction surveys. In J.D. Power's auto insurance study, State Farm scored 833 out of 1,000, which was higher than Allstate's score.
State Farm is typically cheaper for young drivers. For drivers aged 20-24, State Farm's average annual rate is $2,073, while Allstate's is $3,722.
Blake Nwosu
Owner & Principal Agent
Blake Insurance Group
Phone: (888) 387-3687
Email: [email protected]
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