Allstate vs. State Farm: Which Should You Choose? - Investopedia
Allstate
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Allstate
Wide variety of endorsements for most policies, including commercial insurance
Great discounts for homeowners insurance
Helpful online tools, resources, and calculators
Only offers two renters insurance discounts
Fewer agents than State Farm, with a network of about 10,800
Doesn't sell individual health or disability insurance
State Farm
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State Farm
Network of more than 19,000 agents around the country
Two safe driver rewards programs, including one aimed at young drivers
One of the few providers that offers roof-related discounts for home insurance
Very few home insurance endorsements
No riders for commercial insurance
Doesn't offer 24/7 customer service
Allstate vs. State Farm: Auto Insurance
At-a-Glance
| | Allstate | State Farm |
|---|---|---|
| Geographic availability | Nationwide | Nationwide |
| Discount opportunities | 11 | 11 |
| Customer service | Phone, online, email, in-person | Phone, online, in-person |
| Claims processing | Phone, online, mobile app | Phone, online, mobile app |
| NAIC complaint score | 2.74 (above average) | 1.69 (above average) |
| AM Best rating | A+ | A++ |
Coverage
Allstate and State Farm both offer exceptional auto insurance, with minimum coverage and full coverage policies available. The specific coverage limits will depend on your state, but you can request a quote online to see how much coverage you can purchase.
| | Allstate | State Farm |
|---|---|---|
| Personal liability insurance | Yes, amount varies | Yes, amount varies |
| Collision insurance | Yes, amount varies | Yes, amount varies |
| Comprehensive insurance | Yes, amount varies | Yes, amount varies |
| Medical payments insurance | Yes, amount varies | Yes, amount varies |
| Uninsured motorist insurance | Yes, amount varies | Yes, amount varies |
| Underinsured motorist insurance | Yes, amount varies | Yes, amount varies |
Riders
Allstate and State Farm both offer a number of riders, which are optional add-on policies that can be purchased for increased protection. Based on our comparison, Allstate offers a few more riders than State Farm, making it a better choice if you want to customize your policy.
| | Allstate | State Farm |
|---|---|---|
| Rideshare insurance | Yes | Yes |
| Roadside assistance | Yes | Yes |
| Personal injury protection | Yes | Yes |
| Personal umbrella insurance | Yes | Yes |
| Accident forgiveness | Yes | Yes |
| New car replacement | Yes | No |
| Rental car reimbursement | Yes | Yes |
| Custom parts coverage | Yes | No |
| Deductible savings bank | Yes | No |
Rates and Discounts
Car insurance premiums are different for every driver, but you can get a lower rate by taking advantage of each company's auto insurance discounts. In addition, both companies offer a safe driver rewards program. Allstate has Drivewise, and State Farm has Steer Clear for drivers under 25 and Drive Safe and Save for drivers over 25.
| | Allstate | State Farm |
|---|---|---|
| Accident-free | Yes | Yes |
| Defensive driving course | No | Yes |
| Responsible payer | Yes | No |
| Automatic payments | Yes | No |
| Paperless statements | Yes | No |
| Pay in full | Yes | Yes |
| Early signing | Yes | No |
| Good student | Yes | Yes |
| Driver training course | No | Yes |
| Student away at school | No | Yes |
| Recent model vehicle | Yes | Yes |
| Airbags/passive restraint | No | Yes |
| Anti-lock brakes | Yes | No |
| Anti-theft system | Yes | Yes |
| Multi-policy | Yes | Yes |
| Multi-vehicle | Yes | Yes |
Allstate vs. State Farm: Home Insurance
At-a-Glance
| | Allstate | State Farm |
|---|---|---|
| Geographic availability | Nationwide | Nationwide |
| Discount opportunities | 8 | 3 |
| Customer service | Phone, online, email, in-person | Phone, online, in-person |
| Claims processing | Phone, online, mobile app | Phone, online, mobile app |
| NAIC complaint score | 2.74 (above average) | 1.69 (above average) |
| AM Best rating | A+ | A++ |
Coverage
In terms of home insurance coverage, Allstate and State Farm offer all the basics. Keep in mind that the amount of coverage available will depend on factors like your location and the replacement value of your home.
| | Allstate | State Farm |
|---|---|---|
| Dwelling insurance | Yes, amount varies | Yes, amount varies |
| Other structures insurance | Yes, amount varies | Yes, amount varies |
| Personal property insurance | Yes, amount varies | Yes, amount varies |
| Personal liability insurance | Yes, amount varies | Yes, amount varies |
| Medical payments insurance | Yes, amount varies | Yes, amount varies |
| Loss of use insurance | Yes, amount varies | Yes, amount varies |
Riders
When it comes to home insurance riders, Allstate is the clear winner. Allstate offers 14 endorsements, including some unique options, like green improvement reimbursement coverage. For comparison, State Farm only offers three endorsements.
| | Allstate | State Farm |
|---|---|---|
| Identity theft insurance | Yes | No |
| Home sharing coverage | Yes | No |
| Inflation guard | No | Yes |
| Personal umbrella insurance | Yes | Yes |
| Flood insurance | Yes | Yes |
| Water backup insurance | Yes | No |
| Scheduled personal property | Yes | No |
| Business property | Yes | No |
| Sports equipment insurance | Yes | No |
| Green improvement reimbursement | Yes | No |
| Yard and garden coverage | Yes | No |
| Electronic data recovery coverage | Yes | No |
| Musical instrument coverage | Yes | No |
| Deductible savings bank | Yes | No |
| Rate guard | Yes | No |
Rates & Discounts
Homeowners insurance rates are based on criteria like your age, state, and claim history. If you're looking to lower your home insurance premium, State Farm and Allstate offer a handful of discounts that can help you save. When we compared the two providers, we found that Allstate's discounts are much better than State Farm's.
| | Allstate | State Farm |
|---|---|---|
| Multi-policy | Yes | Yes |
| Security system | Yes | Yes |
| Impact-resistant roof | No | Yes |
| Responsible payer | Yes | No |
| Claim-free | Yes | No |
| Welcome and loyalty | Yes | Yes |
| Automatic payments | Yes | No |
| Early signing | Yes | No |
Allstate vs. State Farm: Renters Insurance
At-a-Glance
| | Allstate | State Farm |
|---|---|---|
| Geographic availability | Nationwide | Nationwide |
| Discount opportunities | 2 | 2 |
| Customer service | Phone, online, email, in-person | Phone, online, in-person |
| Claims processing | Phone, online, mobile app | Phone, online, mobile app |
| NAIC complaint score | 2.74 (above average) | 1.69 (above average) |
| AM Best rating | A+ | A++ |
Coverage
You can get a standard renters insurance policy from State Farm or Allstate, which includes contents, liability, medical payments, and loss of use coverage. To find out how much coverage is available where you live, you can request a personalized quote online.
| | Allstate | State Farm |
|---|---|---|
| Personal property insurance | Yes, amount varies | Yes, amount varies |
| Personal liability insurance | Yes, amount varies | Yes, amount varies |
| Medical payments insurance | Yes, amount varies | Yes, amount varies |
| Loss of use insurance | Yes, amount varies | Yes, amount varies |
Riders
Allstate and State Farm offer a handful of riders that can be added to your renters insurance policy for additional protection. For renters insurance only, State Farm offers more riders than Allstate. If you're in the market for renters insurance, State Farm is a better choice if you're looking to build a customized policy.
| | Allstate | State Farm |
|---|---|---|
| Personal liability umbrella insurance | Yes | Yes |
| Identity restoration coverage | Yes | Yes |
| Earthquake insurance | No | Yes |
| Business property insurance | No | Yes |
| Incidental business liability insurance | No | Yes |
| Scheduled personal property coverage | Yes | No |
| Flood insurance | Yes | Yes |
Rates & Discounts
Your renters insurance premium is based on the insurance company you choose, your state, the value of your personal belongings, and more. To get a lower rate, Allstate and State Farm offer a few renters insurance discounts, but the savings from both companies are very limited.
| | Allstate | State Farm |
|---|---|---|
| Multi-policy | Yes | Yes |
| Security system | No | Yes |
| Retired (55 or older) | Yes | No |
Allstate vs. State Farm: Commercial Insurance
At-a-Glance
| | Allstate | State Farm |
|---|---|---|
| Geographic availability | Nationwide | Nationwide |
| Discount opportunities | 0 | 0 |
| Customer service | Phone, online, email, in-person | Phone, online, in-person |
| Claims processing | Phone, online, mobile app | Phone, online, mobile app |
| NAIC complaint score | 2.74 (above average) | 1.69 (above average) |
| AM Best rating | A+ | A++ |
Coverage
Allstate and State Farm offer a wide variety of business insurance policies. You can see the full list of product offerings in the table below. Note that the amount of coverage available depends on unique factors like your state and the industry that your business operates in.
| | Allstate | State Farm |
|---|---|---|
| Commercial auto insurance | Yes, amount varies | Yes, amount varies |
| Commercial property insurance | Yes, amount varies | Yes, amount varies |
| Commercial liability umbrella insurance | No | Yes, amount varies |
| Business owners policy (BOP) | Yes, amount varies | Yes, amount varies |
| Workers' compensation | Yes, amount varies | Yes, amount varies |
| Surety and fidelity bonds | No | Yes, amount varies |
| Builder's risk insurance | No | Yes, amount varies |
| General liability insurance | Yes, amount varies | Yes, amount varies |
| Professional liability insurance | Yes, amount varies | Yes, amount varies |
| Employment practices liability insurance | Yes, amount varies | Yes, amount varies |
| Employers non-owned car liability insurance | Yes, amount varies | Yes, amount varies |
| Farm and ranch insurance | No | Yes, amount varies |
| Key employee insurance | Yes, amount varies | Yes, amount varies |
| Employee health insurance | Yes, amount varies | Yes, amount varies |
| Employee life insurance | Yes, amount varies | Yes, amount varies |
| Employee disability insurance | Yes, amount varies | Yes, amount varies |
| Equipment breakdown insurance | Yes, amount varies | No |
Riders
State Farm doesn't advertise any riders on its website. However, Allstate offers an impressive list of add-ons for more protection. Allstate is our recommendation if you're in the market for business insurance.