Allstate vs. State Farm | Auto Insurance Comparison
When it comes to major insurance providers, Allstate and State Farm are two of the biggest names in the industry.
Both companies have been around since the earlier half of the 1900s and are known for their memorable slogans. Both also offer a wide variety of coverage options and conduct business in all 50 states, which means they have a large part of the total insurance market share.
When considering purchasing insurance from one of these two companies, it’s essential to compare Allstate vs. State Farm by researching reviews and obtaining premium quotes from both.
To assist readers with choosing the best insurance company for their needs, we’ve gathered information on State Farm vs. Allstate based on the following elements: equipment, monitoring, reputation, contract and price, and technology integration.
We’ve then condensed them into four categories:
- Coverage and Benefits
- Pricing and Discounts
- Financial Strength
- Customer Experiences
Allstate vs. State Farm: Coverage Compared
When it comes to Allstate vs. State Farm, both companies offer similar coverage options for drivers, including collision, liability, and uninsured or underinsured motorist.
However, there are a few differences.
For example, Allstate provides custom parts and sound system insurance, which covers theft or damage to stereo equipment and speakers in the vehicle, while State Farm does not.
What Do Their Customers Think?
After customers meet with an insurance agent or representative to determine how much insurance they need and what type of coverage to buy, future communication is usually limited to the claims process.
For this reason, insurance ratings are often heavily weighed towards claims servicing and the level of customer satisfaction with the claims process.
The J.D. Power Claims Satisfaction Report rates top insurance providers across many service areas to provide consumers with reliable ratings. You can compare State Farm vs. Allstate along with other significant players in the industry by looking at their rankings.
While creating these studies, J.D. Power uses three key performance indicator categories (KPIs) to analyze customer satisfaction: communication, ease of service interaction, and timeliness.
In J.D. Power’s 2017 Auto Claims Satisfaction Study, Allstate and State Farm both received a 3-out-of-5 rating for overall satisfaction, coming in just below industry-leading competitors Geico and MAPFRE Insurance and just above Nationwide and 21st Century.
|Overall Satisfaction||Initial Claims Reporting Process||Representative Handling the Claim||Repair Process||Rental Car Process|
|Allstate||3 out of 5 Stars||3 out of 5 Stars||3 out of 5 Stars||4 out of 5 Stars||3 out of 5 Stars|
|State Farm||3 out of 5 Stars||3 out of 5 Stars||3 out of 5 Stars||3 out of 5 Stars||3 out of 5 Stars|
The J.D. Power auto insurance study analyzes and ranks insurance providers across all these areas. When comparing Allstate vs. State Farm in this study, State Farm has an Overall Satisfaction rating of 3 out of 5, which places the company slightly higher than Allstate, which received a 2 out of 5.
The above information clearly shows that many elements can affect the opinions of potential customers and policyholders. In addition to the claims process, several other important factors contribute to insurance provider ratings.
These include the purchase experience, the company’s method, and its timeliness in responding to customer questions. How well the company communicates important information to policyholders, and how it handles complaints are also crucial.
State Farm received scores of 3 out of 5 in two of the five categories and a rating of 2 out of 5 in the categories of Pricing and Insurer Website. Allstate, on the other hand, received a 2 out of 5 in most categories, apart from the local agent and call center representative sections, for which the company rated a 3 out of 5.
When it comes to comparing how both companies handle complaints, the California Complaint Ratio Study provides a sound basis. This study determines a complaint ratio based on the number of justified complaints each company has received in California (the country ’s most populous state) compared to how many vehicle policies were active in a year.
In this particular study, Allstate is ranked 11th out of 50 providers, whereas State Farm is ranked 18th. Companies such as Geico and Farmers came out ahead of both with lower complaint ratios, while other well-known providers, including Progressive and Liberty Mutual, were ranked lower than Allstate and State Farm due to higher complaint ratios.
In 2016, Allstate received a total of 50 justified complaints in California. Based on an approximate total of 1,978,516 vehicle policies, the company’s complaint ratio is 2.5 per 100,000 policies.
State Farm, on the other hand, received more complaints per policy in 2016. With a total of 120 complaints and an approximate total of 3,852,920 policies, the company’s complaint ratio is slightly higher at 3.1.
The National Association of Insurance Commissioners collects data on customer complaints and establishes a ratio comparing them vs. the company’s annual premiums, with a national median of 1.00. Allstate was very close with 2.58.
Allstate vs. State Farm: Comparing Financial Strength
Although it may not be one’s first consideration when deciding on an insurance provider, financial strength is a crucial factor when researching insurance companies. If a major disaster should occur, it’s vital that your insurer will be able to back its policies financially when claims are being made in high volumes.
Comparing State Farm vs. Allstate’s financial strength can be done by obtaining credit ratings from one of the five major rating agencies: Moody’s, A.M. Best, Standard & Poor’s, Fitch Ratings, or Kroll Bond Rating Agency.
Allstate’s financial state is healthy. The company has received an “Aa3” rating from Moody’s, which indicates a stable outlook. A Financial Strength Rating (FSR) of “A+” and an Issuer Credit Rating (ICR) of “aa” from A.M. Best provide further evidence that the company is in good financial standing.
State Farm has been given an FCR of “A++” and an ICR of “a++” by A.M. Best, both of which are the top score and indicate that State Farm’s financial strength is also excellent. Moody’s awarded State Farm an “A2” rating, supporting the company’s stable outlook.
Allstate vs. State Farm: Pricing and Discounts
Many factors can drive up the cost of a driver’s insurance rates, such as:
- Speeding Tickets
- Geographic Location
Likewise, some factors can contribute to a lower price.
Although many insurance providers don’t offer discounted rates, many others do provide benefits to drivers with good driving records or those who own vehicles with additional safety features.
When comparing Allstate vs. State Farm, drivers will find that both companies have a lengthy list of discounts available to drivers, including price cuts for:
- Good Drivers
- Multiple Vehicles On A Policy
Below is a list of discounts available with both Allstate and State Farm for comparison purposes.
|Student Away From Home||Yes||Yes|
|Completed Driver Training Course||Yes||Yes|
|Completed Safe Driving Course||No||Yes|
|Length of Membership||Yes||No|
|Pay In Full||Yes||No|
The above comparison review of Allstate vs. State Farm should give you enough information to make an informed decision about your future insurance needs, though it’s always a good idea to ask for quotes from at least three companies, to gain a better idea of what car insurance might cost for your particular situation.
Use it to help determine which company will best suit your requirements when it comes to claims, policies, pricing, discounts, and customer service.