State Farm is the largest auto & home insurer in the USA, and Allstate is the second largest car & homeowners insurer in the USA. Which insurance company is better? I will review the strengths & weaknesses of both insurance companies, to help you decide, if you are considering insuring with either insurance company.
Is your home or auto insurance company better or worse than average? I review all the leading auto & home insurance companies in the USA, using each company’s customer survey results from recent JD Power insurance studies, as well as each company’s complaint record, to determine if a company is performing better than average, average, or worse than average, for customer service, claims, & price. How is your insurance company rated? Is its coverage competitively priced? Does it have a higher than average number of customer complaints? Find out by reading the reviews on my home page by clicking smartshopyourcarinsurance.com.
Per 2010 market share data from the Insurance Information Institute, State Farm was the largest auto insurer in the US, with 18.7% of the market. Allstate is second with 10.2% of the private passenger car insurance market. For homeowners insurance, State Farm has 21.9% of the US Market, and and Allstate has 9.6% of the home insurance market.
Although these two companies are the largest, based on premium dollars, with State Farm close to double the market share of Allstate, it does not mean they are great insurance companies, or have a low price.
These two insurance companies, State Farm & Allstate, have been the biggest for decades, and many people keep paying the same insurance for years, and never shop for a better rate. Being the biggest does not, in itself, add any value for customers. If you want good insurance at a great price, shop with all the leading insurance companies, then use the information on my website to choose the insurance company with the best coverage & customer service, and the lowest rates for you.
Getting an insurance quote from State Farm & Allstate
Both State Farm & Allstate insurance have many local agents in your community, and most likely, they each have an agent’s office very close to where you live or work.
When it comes to getting a price quote, and qualifying for auto or home insurance, more people will find it easier to qualify for Allstate insurance.
State Farm, though it is a large insurer of nonstandard auto insurance, does not seek to insure “high risk” drivers. So if you have a DUI, reckless driving, license suspension, or bad credit (depending on your state’s law) with a few tickets or accidents, a State Arm agent is most likely to refer you to another insurance company or agent to help you.
Some Allstate agents may refer you to another insurance company, too. But in most areas, it is not hard to find an Allstate agent willing to quote “high risk” drivers.
Also, Allstate agents tend to ask less questions and are less rigorous to qualify you for eligibility.
For example, State Farm agents are more likely to ask you about non-related room mates when you get a quote for auto insurance, and to decline to insure you if your room mate has a bad driving record.
Many Allstate agents won’t ask you about non-related room mates, or are not concerned with them if they have their own auto insurance.
Allstate & State Farm Customer Service
State Farm wins this category, based on its lower national complaint ratings, & higher JD Power customer satisfaction ratings, which you can review at my Auto & Home Insurance Reviews Web page.
However, when it comes to insurance companies, you can have a terrible experience, even from a highly rated insurance company. If you don’t believe me, just check the Internet for your favorite insurance company, and you will find many people, fairly or unfairly, complaining about it.
The quality of your insurance agent goes a long way to give you a great customer experience, if they are willing to work on your behalf to watch over your policies, fix any problems, and prevent problems from happening.
A mediocre agent from an insurance company with a great reputation, may fail to meet your customer service expectations. A great agent, from a mediocre insurance company, can exceed your customer service expectations.
State Farm & Allstate Insurance Claims Handling
State Farm wins this category, too, for two reasons:
1. The JD Power ratings give State Farm a slight edge, and State Farm’s lower national complaint record — most Allstate companies are about average, but most State Farm companies have a lower than average number of valid complaints.
However, if your state compiles their own complaint information, you want to check your state’s complaint index, which you can find in my blog state reviews, or on your State’s Department of Insurance Website. An insurance company with a great national complaint record may have a poor complaint record in your state.
2. State Farm has their agents more involved in the claims process, and many State Farm agents will assist you place a claim on the other driver’s insurance, if the other driver was at fault.
Some Allstate agents oversee the claims process, but a lot of them do not get involved unless you have a problem.
Allstate has a new Claim Satisfaction Guarantee Credit in 31 states. You can read my blog post about this innovative new benefit, and possible game changer, by clicking the link in the previous sentence.
Again, whether you choose Allstate or State Farm, the difference may be made by the quality of your agent.
Another way you can find out about which auto insurance companies have an easy claims process, is to call a few local auto body shops, and ask which insurance companies they prefer to do business with.
State Farm or Allstate Coverage Options
Allstate wins this category. Although State Farm can have superior coverage to Allstate, depending on your insurance needs, Allstate has many innovative options, such as being able to purchase accident forgiveness for auto insurance, and guarantees not to cancel your policy, or raise your rates, for claims on homeowners insurance (depending on availability in your state).
Does State Farm or Allstate have the best price?
Which company has the best price for auto & home insurance? This will vary depending on your risk profile and where you live. All insurance companies advertise about how people switching to their insurance save hundreds of dollars, but not everyone they quote saves money. You have to shop with all the leading insurance companies each year if you really want to find the insurance company saving YOU hundreds on your insurance.
As for now, in my opinion, Allstate is an average insurance company, and State Farm is an above average insurance company, in a lot of states. But if Allstate quotes my insurance at a much better price, I would choose them over State Farm. If you are like me, the best insurance gives me the coverage and service I need at the best price. That’s why it pays to shop the market each year.
Many people pay too much for their insurance because they never shop for better rates, or if they do shop, they don’t check the rates of enough companies. For a lot of people, the best auto & home insurance companies are the ones with the coverage they need at a lower price. With auto & home insurance, you don’t get better service or coverage because you pay more. Some of the best companies have competitive rates. Some companies charge twice as much as others for the same coverage. But no single company has low rates for everyone. You have to shop with all the leading companies, to find the company with the best coverage and best price for you. The ad below will take you to links to get online quotes from leading Home, Auto, Health, & Life insurance companies in your area. Choose the type of insurance, put in your zip, and start shopping now!
Which insurance company do you think is better? Allstate or State Farm? Tell me about it. Please leave a comment on my facebook page. Follow me on Twitter for important insurance consumer news and new blog entries at CarInsWatch.