Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Aug 3, 2021

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Key takeaways...

  • There are a number of ways to make a choice about what car insurance company to use but first you should learn about each company
  • Allstate is a publicly traded company and currently the largest one who provides personal insurance products
  • State Farm is the largest car insurance company in the US, a Fortune 500 company
  • Shop around and compare rates to make sure you are getting the best rate for your coverage comparing car insurance

Are you comparing car insurance companies and need to make a decision between Allstate and State Farm?

These 2 car insurance companies make up the largest market share for auto insurance policies nationwide so which company is better?

There are a number of ways to make a choice about what car insurance company to use but first you should learn about each company. Make sure you compare rates with our free quote tool above today!

About Allstate

Allstate is a publicly traded company and currently the largest one who provides personal insurance products.

Backed by over $125 Billion in assets and 70,000 + employees Allstate has a tremendous local presence through employees and agencies who support Allstate car insurance policies and claims. You might recognize the tagline asking “are you in good hands?” Many people now associate Allstate with the character Mayhem played by actor Dean Winters. This starts with auto insurance and collision coverage, but they offer products for virtually every part of your life.

Allstate offers a much wider product line of insurance products than State Farm meaning your eligibility to take advantage of multi-policy discounts may be greater with Allstate depending on what types of policies you have and what state the insured property is located. A larger size can mean greater financial stability with the risk spread out.

Allstate has a sterling reputation for claims handling with many drive-thru claims offices located nationwide. With a large network of insurance agents, you can easily get a quote on insurance premiums wherever you are.

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What Should You Know about State Farm?

https://www.youtube.com/watch?v=EejU7BmW5Mo

State Farm is the largest car insurance company in the US, a Fortune 500 company, #34, and maintains over 70 percent of their portfolio strictly to car insurance policies. So an added bonus may be provided to State Farm for this single focus on auto insurance.

However, when it comes to insurance rate, some consumers report State Farm car insurance rates and higher than competitive companies. Some consumers even complain about State Farm dropping coverage without notice.

This is not a good way to do business as a driver could easily have their license suspended without knowledge in many states.

Of course, State Farm is legally required to notify you ahead of time if they don’t plan to renew your contract. Insurance companies also send notifications when payments are not received. If you’re signed up for paperless notifications and the mobile app, managing your policy is that much easier.

Both companies have embraced the use of technology to provide customers with online policy management tools, iPhone Apps and more.

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Industry Review of Allstate vs State Farm

On August 3, 2010, JD Power and Associates announced the 2010 National Auto Insurance Study and provided ratings to both Allstate and State Farm across a number of different areas.

All results out of a possible 5 stars:

– State Farm

  • Overall Satisfaction – 4 Stars
  • Contacting the Insurer – 4 Stars
  • Policy Offerings – 3 Stars
  • Billing and Payment – 4 Stars
  • Pricing – 3 Stars

– Allstate

  • Overall Satisfaction – 3 Stars
  • Contacting the Insurer – 3 Stars
  • Policy Offerings – 3 Stars
  • Billing and Payment – 3 Stars
  • Pricing – 2 Stars

It seems that State Farm certainly has won the J.D. Power car insurance survey as overall State farm was the number five provider and Allstate #18. When you have car insurance companies this size, its hard to compare based on surveys as so many factors exist. Sometimes, it even comes down to the insurance agent selling the policies.

What you can take from the results are both of these companies seem to have a solid enough reputation to pay future claims. So choosing a provider should be based on items important to you such as:

  • Online Account Tools
  • 24 Hour Live Customer Service
  • Local Agents
  • Claims Process
  • Payment Options
  • Coverage Limits
  • Premiums
  • And more

Never forget to learn about car insurance discounts as these vary by provider and sometimes simply asking for the right discounts can save you $100’s in premiums. It could be as simple as combining your auto insurance with a renters insurance or homeowners policy or specifying which auto safety features your car has. Some people also take defensive driving classes or use telematics devices supplied by their insurer.

Others look at their coverage options and decide what they need. Do you want certain types of coverage? Can you afford to increase your deductible for collision and comprehensive policies? If you have a young driver moving out of the house soon, or have you compared prices on a separate policy for your teen driver? These are just a few of the things many drivers consider when comparing State Farm and Allstate or other companies.

Are you looking for average premiums to find the right insurance company for your auto insurance needs? Whether you only want liability or more comprehensive coverage, we can help. Use our online tool to finish your car insurance comparison search and get FREE auto insurance quotes online!

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