Allstate vs. State Farm Insurance

Allstate and State Farm are the two largest car insurance companies in America, and having to choose between these two can be difficult. Both are highly rated insurance providers and provide superior customer service, so what are the differences between Allstate and State Farm?

For most drivers both Allstate and State Farm are of comparable quality, but there are subtle differences depending on whom you speak with and ratings or reviews you read.

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State Farm Review

In terms of market share, State Farm is the largest auto insurance company in America with almost a 19 percent market share, according to a 2009 market report published by the Insurance Information Institute of America. This equates to over 70 million policies, and you can bet State Farm has a firm commitment to customer service and claims handling.

State Farm also primarily focuses on the car insurance market with over 70 percent of its insurance portfolio dedicated to auto insurance coverage. This intimate knowledge and supersized presence in the car insurance industry certainly provides many valuable benefits to drivers looking for a strong company to be there in the event of an accident.

State Farm’s slogan is “Like a Good Neighbor — State Farm will be there,” and you can bet with the size of this company, they certainly have the resources to pay any claim.

About Allstate

Allstate has over 70,000 employees and holds almost an 11 percent market share of car insurance in America. This is a little less than half the number of policyholders State Farm has, but it is also the second-largest market share, making Allstate the second-largest car insurance company in the USA.

Allstate has a much more diverse set of product offerings, which can certainly help when combining policies for multi-policy discounts. Allstate offers everything from life insurance to variable annuities to car insurance.

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State Farm vs. Allstate Customer Service Review

While some car insurance companies barely use their company website for anything more than a “get a quote” page, both Allstate and State Farm have invested millions of dollars for their policyholders to have access to a wealth of information through all the latest technology — from iPhone apps to mobile management tools, both companies are equal in commitment to making the customer service process as smooth and efficient as possible.

As far as industry ratings go, JD Power and Associates annually publishes a National Auto Insurance Study, and in 2010 State Farm ranked number five overall in relation to all of the car insurance companies studied (Amica Mutual car insurance company was number one). Allstate was number eight.

On a scale of 1,000, State Farm scored a score of 795 compared to Allstate’s 768. State Farm managed to get four stars for overall satisfaction, billing and payment, and contacting the insurer, while Allstate scored three out of five for the same tasks.

State Farm vs. Allstate Car Insurance Rates

Both of these car insurance companies have high market shares, but there have been some consumer reviews who complain that State Farm has dropped coverage without notice, and premiums from both providers tend to be higher than competitive insurers for some risk profiles.

For many drivers, the higher premiums these auto insurance companies may command are well worth the peace of mind knowing such a strong company is behind coverage, but for those cost-conscious consumers, it may be worth at least exploring all your car insurance options.

At the end of the day, both of these car insurance companies certainly have much more positive reviews than complaints, and that is clearly shown by the commanding market share they control in a free market.

So who is better — Allstate or State Farm?

The best car insurance company will depend on your unique needs, and while it’s easier at times to choose a winner on the surface, sometimes you simply have two great companies. Whomever you choose the end result will be the same — a great product backed by a great company at affordable rates.

Considering these two car insurance companies account for almost 30 percent of all auto insurance policies in America, it’s practically impossible to say one is better than the other. You would be wise to consider both Allstate and State Farm as potential car insurance companies in your search for coverage.

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