Last updated: December 12, 2015 at 17:51 pm

All State Versus State Farm Car Insurance Comparison

Two of the highly visible insurance companies in the country are Allstate and State Farm.  They were established 9 years apart with State Farm in 1922 and Allstate in 1931. Another trivia about these two companies is that their headquarters are both based in Illinois. State Farm is in Bloomington, Illinois while Allstate has its corporate headquarters in Northfield Township, Illinois. Both companies are also offering their services in Canada.

Today, Allstate is considered to be the country’s 3rd largest personal insurer provider while State Farm is one of the top car insurance providers including personal lines insurance. Historically, Allstate started selling all kinds of personal insurance while State Farm started with auto insurance before branching out to other insurance products.

Allstate Full and liability coverage

Allstate Insurance version of full coverage should be what you want including:

  • Liability – Maximum protection and payment from at-fault accidents whether it be property or person
  • Comprehensive plus collision – These options can be bought for additional fees to cover damages the policy holder’s car whether it is from an accident caused by human error or natural disasters and unintended incidents like falling objects.
  • Underinsured and Uninsured – This protects you against damages to your car or your person in case you figure in an accident where the other party is underinsured or uninsured.
  • Medical Payments – This covers you for medical expenses whether you are in your car at the time of the accident, you are a pedestrian, or you are in another person’s car. It can also include coverage for family members driving your car when the accidents occurs.
  • Personal Injury – This covers medical expenses and related expenses you may have to pay for while you are healing such as loss of income, child care services, therapy, and funeral costs.
  • Towing and Cost of Labor
  • Rental Car Reimbursement
  • Sound System Protection for your high end audio system

State Farm Full Coverage

Being one of the largest insurance companies in the country, State Farm can offer you a customized “full coverage” plan. You will have to sit down and discuss the details with an accredited agent because aside from getting exactly what you want, you will also be able to see what discounts you are eligible for.

The standard State Farm full coverage is basic plus collision plus comprehensive. However, you can also include the following:

  • Maximum payment liability
  • Medical Payment
  • Underinsured and Uninsured Coverage
  • Travel expenses including car rental
  • Emergency Road Services

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Comparison of Overall Performance

Both companies are available for online transactions and offer a wide range of discounts to eligible customers. Both companies have an extensive network of offices and agents with reasonable and competitive rates, and wide-ranging coverage options.

Comparing the websites of the 2 companies, both companies are very aggressive and their websites can be accessed thru multiple-sized screens. Both websites are information-heavy although the website of Allstate may appear aesthetically more appealing to the user while State Farm is all-business upfront.

Comparison of Individual Features for Car Insurance

The top concerns of a policy holder when buying auto insurance are: premium, add-in features, discounts, claims processing, financial stability, and service. With premium rates, the affordability of both companies is almost on an even scale with Allstate charging a little higher. For instance, am average male driver aged 29 would have to pay $58 a month with Allstate but only $51.44 with State Farm.

Since car insurance is mandated in all states, you can buy the minimum requirement. To lower your premium, you can turn to discounts and a customized plan.

Comparing Discounts of Allstate and State Farm

Discounts are offered by insurance companies to encourage loyalty. When you request an initial quote, the discounts are not included. They will only be computed after you have submitted your documents and/or data for assessment.

  • For good credit record, Allstate is offering a 68% discount while State Farm is giving out as high as 80% discount although terms and conditions apply.
  • If you have a clean record with no recent claims or incidents, Allstate has up to 50% discount on their Drive Safe and Save Program while State Farm is willing to approve a discount of up to 25%.
  • If you bundle your car insurance with your home insurance with Allstate, they are willing to offer a 10% discount while State Farm is giving out 22% discount.
  • If you are willing to put several cars under one policy, Allstate is giving up to 25% while State Farm has a 20% offer.
  • If you have not defaulted on premium payments, have an anti-theft device, agree to e-billing, Allstate will be willing to give you 5%. State Farm has a 10% discount on anti-theft features.
  • If you can prove low mileage or you are enlisted or retired from military service, State Farm is willing to sit down and talk to you about discounts. The rates vary depending on the personal demographics and other information.

All discounts that are mentioned have to pass through an internal assessment and review by the insurance company. They are not always approved and will depend on the policy you want to buy and its features.  The discounts are also graduated which means you cannot jump to a high discount on your first year with an insurance company. Lastly, some of the discounts are not offered in all states.

There are lesser known discounts not published which you can ask about, not just with State Farm and Allstate but with all car insurance companies. However, as a matter of normal protocol, State Farm recommends that all policy holders review their plan before it expires with one of their agents or after a major milestone. One of the reasons for this is the possibility of being eligible for new discounts.

Comparing Claims Processing

The purpose for buying car insurance is protecting against unexpected expenses so processing is a key element when comparing insurance companies. State Farm has consistently performed better in servicing claims and complaints when polling different reviews from industry and customers alike.

The customer service ratings taken from an industry survey done last January 2015 reveal that State Farm has an approval claims process rating of 8.2 and an approval rating for billing process of 7.9/10. Allstate, on the other hand, received an approval rating for claims process of 7.9 and 7.6/10 for their billing process.

Another independent review, purch.com, awards State Farm with a 9.8/10 satisfaction rating and Allstate with a rating of 8.0/10 which still puts Allstate in their top 5 car insurance companies.

Comparing Special Features and Incentives

Both insurance companies offer roadside assistance, rental reimbursement, and glass coverage. Allstate has accident forgiveness and personal/upgraded item coverage. The accident forgiveness feature is only available to Gold and Platinum plans which charge higher rates by 8 and 15% respectively.

In addition, to qualify for accident forgiveness, you need to have been with Allstate for at least 3 years with no collision record if you have the gold plan.

All these special features come with their respective fees except for glass coverage which is available only to those with comprehensive insurance.

If you want to cancel your policy, the fee charged by Allstate is 10% of your premium while with State Farm, you will have to pay a minimum of $20 per remaining month on your policy.

Summary

Both companies are financially stable with excellent S&P Financial Strength Rating of A and higher. Allstate has won numerous awards in the past decades from working mothers to business leaders. State Farm is known for being environment-friendly with their committed efforts to be green and winning many awards. Allstate also has a green project known as Sustainability Leadership Team although this is more of an internal program for their junior and senior managers.

As far as consumer feedback is concerned, it’s a mixed bag of positive and negative feedback. The key to ensuring a positive experience is following the rule of thumb of reviewing your policy every year as your needs and car situation changes.



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