Allstate and State Farm are familiar car insurance companies in the United States. Each of them insures millions of people across the country. In addition to car insurance, you can also get a variety of other policies, like home, renters, business, pet, and life insurance.
State Farm and Allstate are among the best insurance companies, but they each have their unique features. In this article, we’ll review both carriers holistically by highlighting all you need to know about them.
Table of contents
About Allstate Insurance
The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with more than 113 million proprietary policies. They offer a broad array of protection products through multiple brands and diverse distribution channels, including auto, home, life, and other insurance offered through its Allstate, Esurance, Encompass, SquareTrade and Answer Financial brands.
Since its inception in 1931, Allstate has been a pioneer of the insurance industry. Americans have depended on Allstate to help protect their families and their belongings for over 80 years.
Based in Northbrook, Illinois, Allstate is the nation’s largest publicly held personal lines insurer. Its leaders, employees, and agency owners have been an integral part of Allstate’s heritage.
About State Farm Insurance
State Farm was founded in June 1922 as a mutual automobile insurance company owned by its policyholders by retired farmer George J. Mecherle. Farmers’ auto insurance was the firm’s specialty, but it later expanded its services to include other types of insurance, such as homeowners and life insurance, as well as banking and financial services.
State Farm is the largest property and casualty insurance company in the United States, as well as the largest auto insurance company. In the 2019 Fortune 500, which ranks American companies by revenue, State Farm is ranked 36th.
Exclusive agents (also known as captive agents) are used by State Farm to sell insurance. Only State Farm agents can sell State Farm insurance, and only State Farm products can be sold by their agents.
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Allstate Vs State Farm Insurance: Pros and Cons
State Farm and Allstate are two of the best insurance companies, but they each have their own set of advantages and disadvantages. We compared the two carriers and found that Allstate is the better option overall. Allstate offers more policy options and discounts than State Farm. State Farm, on the other hand, has a much larger agent network, which is advantageous if you prefer to work with a live agent.
Pros and cons of Allstate insurance
Here is an outline of the major pros and cons of Allstate Insurance:
Pros
- Allstate offers wide variety of endorsements for most policies, including commercial insurance
- They have great discounts for homeowners insurance
- Helpful online tools, resources, and calculators
Cons
- 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
Pros and cons of State Farm Insurance
Pros
- Customer satisfaction and financial strength ratings are way above average.
- State farm’s agents are easily accessible nationwide.
- They have a diverse range of customizable coverage options.
- Auto insurance rates are lower than the industry average.
- Customers can access services – including quotes, bills payment, and claims filing – through a user-friendly mobile app and website.
Cons
- Homeowners insurance premiums can be above the industry average.
- State Farm does not always offer specialized protection for auto insurance clients with unique coverage needs.
- Customers can only get access to products and services directly from the company or through its network of agents.
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State Farm vs. Allstate: Coverage Options
Standard coverages such as liability, personal injury protection or medical payments, comprehensive and collision coverage are available from all car insurance companies. State Farm and Allstate both offer the basic coverages as well as a few extras, but Allstate comes out on top with a wider range of coverage options.
Both auto insurance companies offer rideshare insurance, roadside assistance, and rental car reimbursement. Allstate on its part provides coverage options like new car replacement, gap insurance, sound system coverage, portable electronics and media coverage, custom parts coverage, and deductible modification. For drivers with high deductibles, financed new cars, upgraded electronic equipment, or installed custom parts, these extra features may be worth the additional cost.
Allstate vs. State Farm: Getting a Quote
Obtaining rate quotes is an important part of the process when comparing insurance providers. State Farm and Allstate, fortunately, both offer online quotes for the majority of the insurance products they sell. If you prefer, you can get a quote by calling an agent.
To get a quote from both companies, all you need to do is provide information about yourself like your birthday, Social Security number, and address, as well as specific information about the policy you’re buying.
Because Allstate and State Farm both work with independent agents, it’s essential you work with an agent. If you don’t build a rapport with the first agent you speak with, you might consider finding another one in your area.
The process should only take a few minutes, whether you get a quote online or over the phone. And, if you get a quote online, you’ll be able to save it and come back to it later, so there’s no pressure to buy a policy right away.
Allstate Insurance Vs State Farm Insurance: Rates & Discounts
Commercial insurance policies are built on factors unique to your business, including the number of employees you have, the risk your employees face, and where your business operates. From our findings, Allstate and State Farm don’t offer any discounts for commercial insurance. However, you might qualify for a multi-policy discount if you purchase two or more business insurance policies from the same company.
State Farm vs. Allstate: Which Is Better for Discounts?
Most insurance companies offer the same discounts for car safety features, safe driving habits, and premiums paid in full. However, what makes the difference in your auto insurance premium isn’t the number of discounts but the absolute cost of the quoted coverage. Does this sound surprising? I hope not.
Typically, the two most significant discounts offered are auto and home bundle discounts and usage-based programs, which observe your driving habits and mileage. State Farm offers one of the highest discounts for bundling home and auto insurance at 25%, which places it on top in this category. Allstate’s multi-policy discount is 17%, which places it with the national average bundling discount for major insurers. If you own a home and a car, it almost always makes sense to join the two to get the biggest discount available.
Allstate’s Drivewise usage-based program can lead to 40% or more in savings. It monitors speed, braking habits, and the time of day you drive to check for potential discounts for making smart driving choices. They also have a mileage program called Milewise, which supplies auto insurance rates based on miles driven.
State Farm’s Drive Safe & Save program observes driving habits and how many miles driven and can yield up to a 50% discount.
Allstate vs. State Farm: Claims
State Farm and Allstate have online and mobile claims systems, but only for auto, home, and renters insurance claims, as well as windshield glass repair claims. If you have any need to file a claim for any other type of policy, you have to call the company directly.
Whether you choose to file your claim online or over the phone, you’ll be asked to provide your policy number, then give a description of the claim, and submit photos if you have evidence of the damage. Additionally, you will be assigned an adjuster who will reach out and explain the claim process and what your policy will cover.
Final Thoughts
Both State Farm and Allstate offer several options to users. They also have mobile apps with similar options that paves way for ease and accessibility. Nonetheless, if you are looking for an insurance company with wider coverage options, Allstate comes on top.
On the other hand, if you are looking for an insurance company that offers the highest discount for bundling home and auto insurance, State Farm offers a 25% discount.
State Farm has the most affordable coverage, but Allstate has better customer service and more unique coverages. For drivers with bad credit and young drivers, Allstate has lower rates, while State Farm is better for those with traffic violations. Allstate provides coverage that State Farm does not, such as custom parts and electronic equipment coverage for car owners who choose to modify their vehicles.
To get started with any of the two, we advise you to speak with each of the company’s individual agents or simply visit their website for more details.
References
- investopedia.com – Allstate vs. State Farm
- en.wikipedia.org – State Farm
- moneygeek.com – Compare State Farm vs. Allstate to Find Out Which Is Best for You
- smartfinancial.com – State Farm vs. Allstate: What You Need to Know
- https://www.statefarm.com/
- https://www.allstate.com/
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