Allstate Vs. Farmers Insurance: A Comprehensive Comparison Guide

Allstate and Farmers are two of the most popular car insurance companies in the United States. Both companies offer a range of insurance options, including auto, home, life, and business insurance. However, they differ in various ways, including customer satisfaction, rates, and discounts offered.

Allstate is the fourth-largest auto insurance company in the US and is available in all states. It tends to have higher rates than its competitors and has lower customer satisfaction scores. On the other hand, Farmers has slightly better rates and higher customer satisfaction scores. It is also worth noting that Farmers has a longer list of discounts compared to Allstate.

Customer satisfaction

Allstate has a strong presence with over 19,000 independent contractor agents across the country, making it easy for customers to find an agent in their area. The company also offers a range of insurance packages that can be customized to meet individual needs. Additionally, Allstate has an extensive network of local agents, providing easy access to customer service. The Allstate app is highly rated for its user-friendliness and comprehensive features, including instant agent access, digital ID cards, policy document access, and claims management with photo upload options.

On the other hand, Allstate tends to offer higher auto insurance rates than its competitors, and its customer satisfaction ratings are lower. In a customer satisfaction survey, Allstate ranked last, with low satisfaction rates for customer loyalty and the likelihood of customers recommending or renewing their policies. However, Allstate's claims handling and customer service are well-rated, and the company receives relatively few customer complaints overall, considering its size.

Farmers Insurance, on the other hand, has higher customer satisfaction ratings than Allstate and offers a wider range of coverage options. Farmers ranked mid-pack in a customer satisfaction survey, thanks to higher scores for claims handling. The company also has higher ratings across various platforms, including the National Association of Insurance Commissioners (NAIC). Farmers customers report high satisfaction levels with customer service and claims handling, and the company has a slightly lower complaint ratio according to the NAIC Complaint Index.

In terms of J.D. Power ratings, Farmers and Allstate are evenly matched for customer satisfaction. However, Farmers received an average score for its claims handling, while Allstate scored below average. According to J.D. Power, Farmers' overall customer satisfaction is average, while Allstate's is below average.

When it comes to third-party ratings, Farmers has an A rating from A.M. Best, while Allstate received an A+, indicating excellent financial stability for both companies.

In summary, while Allstate offers greater accessibility and customization, Farmers excels in customer satisfaction, claims handling, and overall value, making it a more attractive option for customers seeking a positive insurance experience.

Discounts

Allstate Discounts:

• Smart Student Discount: Allstate offers this discount to teens who attend school 100 miles away from home, take a driver's education course, or get good grades.
• Multiple Policies Discount: Allstate provides a discount if you purchase two or more insurance plans, such as bundling home and auto insurance.
• Military Discount: Depending on your location, active military members can save up to 25% on their insurance with Allstate.
• Anti-Theft Devices Discount: If you have devices like GPS trackers or audible alarms installed in your vehicle, you may qualify for this discount.
• Anti-Lock Brake Discount: This discount is applicable if your car is equipped with anti-lock brakes.
• EZ Pay Discount: You can save a small percentage on your rates by signing up for automatic monthly withdrawals from your bank account.
• ESmart Discount: Allstate offers a small discount if you agree to paperless communication and billing.
• Early Signing Discount: This discount is available if you sign up for your policy at least seven days before it becomes active.
• FullPay Discount: Allstate offers a discount if you pay for your entire policy at once, rather than through monthly instalments.
• Responsible Payer Discount: Allstate rewards customers who haven't received a notice of insurance cancellation due to missing payments.
• Safe Driving Club Discount: Allstate offers this discount if you meet their safety requirements, such as safe speeds and safe stopping.
• New Car Discount: As long as you're the first owner of a new vehicle, you'll get a discount on your insurance rates.

Farmers Discounts:

• Affinity Discount: Farmers offers a discount if you belong to an eligible group or are an active or retired military member.
• Multiline Discount: If you purchase multiple types of insurance from Farmers, such as combining car insurance with homeowners or renters insurance, you can earn a discount.
• Multi-Car Discount: Farmers provides a discount if you insure multiple vehicles under the same policy.
• EPolicy Discount: Accepting paperless documents and billing can earn you a small discount.
• Good Payer Discount: If you haven't incurred any late fees for your insurance payments in the past 12 months, you may qualify for this discount.
• Safe Driver Discount: Farmers rewards drivers with zero points against them on their driving record.
• Distant Student Discount: Farmers offers a significant discount for students who live more than 100 miles away from home and don't take a covered car with them.
• Youthful Driver Discount: This discount is available for drivers under 25 who are added to an existing policy.
• Good Student Discount: Full-time students can earn this discount by maintaining good grades, making the honour roll, or scoring well on standardised tests.
• Shared Family Car Discount: If your household has more drivers than cars, you may be eligible for this discount.
• On Your Own Discount: Farmers offers a discount if you're under 29 and split off an existing policy held by a parent or guardian.
• Mature Driver Discount: Also called the defensive driver or senior driver discount, this is available to drivers over 55 who pass a driver's education class.
• EFT Discount: A small discount is offered if you set up automatic payments.
• Pay in Full Discount: Similar to Allstate, Farmers provides a discount if you pay for your entire policy upfront.
• Anti-Theft Devices Discount: Farmers offers individual discounts for various anti-theft devices, such as homing devices, alarms, and VIN etching.
• Safety Devices Discount: Farmers provides discounts for safety features like daytime running lights, anti-lock brakes, and passive restraints.

Overall, Farmers offers a slightly longer list of discount options compared to Allstate, which may result in greater savings for customers who qualify.

Rates by age

Allstate offers lower rates for teen drivers than Farmers, but Farmers is cheaper for young adults, adults, and seniors.

Allstate vs Farmers: Rates by Age

| Age Group | Allstate Average Annual Premium | Farmers Average Annual Premium |

|---|---|---|---|

| Teen Drivers | ~$12,806 | ~$14,022 |

| Young Adults | ~$5,225 | ~$4,076 |

| Adults | ~$3,053 | ~$2,683 |

| Seniors | ~$2,987 | ~$2,683 |

Allstate's rates for teen drivers are cheaper than Farmers, but Farmers offers lower rates for young adults, adults, and seniors.

Allstate vs Farmers: Rates by Credit Score

| Credit Score | Allstate Average Annual Premium | Farmers Average Annual Premium |

|---|---|---|---|

| Good | ~$3,374 | ~$3,253 |

| Poor | ~$3,374 | ~$4,164 |

Allstate's rates for drivers with good credit are cheaper than Farmers, but Farmers offers lower rates for drivers with poor credit.

Rates by location

The average cost of Allstate car insurance is $1,262 per year, or $105 per month, for a minimum-coverage policy. However, the exact cost of auto insurance with Allstate depends on factors such as a driver's history on the road, age, state, and coverage limits. For example, full-coverage insurance from Allstate costs an average of $3,666 per year.

The average cost of Farmers car insurance is $3,169 per year, or $264 per month, for a full-coverage policy. A minimum-liability coverage policy will cost about $1,153 per year, or $96 per month, on average.

The overall average monthly price of Allstate insurance in the U.S. is $168.42, while Farmers is a little lower at $160.08. However, Allstate is cheaper in states like Montana, New York, and Florida.

Allstate's average homeowners insurance rates are $1,594. Farmers Insurance's average is somewhat more affordable at $1,455 per year.

Rates by credit score

Allstate and Farmers Insurance both use credit scores to determine insurance rates. However, Farmers Insurance does not use credit scores in California, Hawaii, or Massachusetts, where the practice is illegal.

Allstate uses credit scores to determine insurance rates, but it does not use credit scores to determine rates in Massachusetts. Allstate's use of credit scores is based on the following factors:

• Payment history
• Length of credit history
• Current balance on each account compared to the highest balance
• Number of credit accounts
• Credit inquiries
• Bankruptcies, foreclosures, and other collection activity

Farmers Insurance uses credit scores to determine insurance rates, but it does not use credit scores in California, Hawaii, or Massachusetts. Farmers Insurance's use of credit scores is based on the following factors:

• Payment history
• Length of credit history
• Current balance on each account compared to the highest balance
• Number of credit accounts
• Credit inquiries
• Bankruptcies, foreclosures, and other collection activity

Frequently asked questions