Haris Ashley
State Farm and Allstate are two of the most popular insurance companies in the US, with policies available across most of the country. While both companies offer a wide range of coverage options, State Farm's default coverage is more generous than Allstate's, providing an extra 20% cushion for dwelling coverage. Allstate, on the other hand, offers more discounts and customizability. State Farm also offers cheaper rates on auto and home insurance bundles, while Allstate's homeowners insurance rates are lower for individual policies. Customer satisfaction ratings differ, with State Farm generally scoring higher, although Allstate has a better National Association of Insurance Commissioners (NAIC) rating, indicating fewer complaints.
| Characteristics | Values |
|---|---|
| Default coverage | State Farm's default coverage is more generous than Allstate's |
| Discounts | Allstate offers more discounts |
| Coverage options | Both companies have unique coverage options and price points |
| Availability | Allstate and State Farm policies are available across most of the U.S. |
| Customer satisfaction | State Farm has higher customer satisfaction ratings |
| Claims handling | Allstate has better claims handling |
| Bundling discount | State Farm offers a higher bundling discount |
| Cheaper rates | State Farm's rates are cheaper |
| Customizable policies | Allstate offers highly customizable home insurance policies |
| Coverage limit | State Farm's coverage limit is higher |
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What You'll Learn
Default coverage
When it comes to default coverage, State Farm offers a more generous default policy than Allstate. State Farm's default coverage includes an extra 20% of dwelling coverage, which serves as a cushion in case rebuilding is more expensive than expected.
For instance, in a comparison for the same house in Pittsburgh, Pennsylvania, Allstate recommended about $417,000 in dwelling coverage, whereas State Farm offered a coverage limit of about $519,000, plus an extra 20% cushion, which equates to an additional $103,800 of coverage for the structure of the home. In total, State Farm provided nearly $623,000 in dwelling coverage for the same home.
State Farm also provides a free ADT smart-home security system to policyholders in select states, along with a discounted rate for professional monitoring. Signing up for this monitoring can save policyholders up to 6% on their homeowners policy, provided they are willing to share their ADT account and usage data with State Farm.
On the other hand, Allstate offers three types of roadside service to customers with and without an Allstate insurance plan. Annual roadside membership plans and pay-per-use plans are available, and customers with Allstate insurance can add roadside coverage to their policy. The pay-per-use coverage option allows customers to pay only when they require a service, typically charging $119 per tow and $84 for other services such as tire changes, jump starts, fuel delivery, and locksmith services.
Allstate also offers Claim RateGuard, which ensures that a customer's rate remains unchanged if they file a claim. Additionally, with Claim-Free Rewards, customers can receive 5% back for each year they go without filing a claim. The Deductible Rewards program entitles customers to $100 towards their deductible when they sign up, plus an extra $100 for each year they do not file a claim, with a maximum reward of $500 off the deductible.
While State Farm's default coverage is more comprehensive, Allstate offers more discounts and optional coverages that may appeal to those seeking greater flexibility in their insurance plans.
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Customer satisfaction
In J.D. Power's Home Insurance Study, State Farm was awarded an above-average rating for customer satisfaction, while Allstate was slightly below average. State Farm also received a higher rating for overall satisfaction and claims satisfaction from J.D. Power. Additionally, State Farm has better ratings for car insurance, with higher ratings for overall satisfaction, claims satisfaction, and customer service from J.D. Power and the National Association of Insurance Commissioners (NAIC).
Allstate, on the other hand, has its strengths. It offers highly customizable home insurance policies and is generally held in high regard by customers and rating agencies. Allstate scored higher for claims handling in some surveys and received a lower number of complaints than State Farm, according to the NAIC. Allstate also has cheaper overall rates, making it a good option for those with lower credit scores.
Both companies have their pros and cons when it comes to customer satisfaction. While State Farm has higher overall ratings, Allstate offers lower rates and is better for claims handling, according to some sources. Ultimately, the decision between the two companies may depend on individual needs and preferences.
It is worth noting that customer satisfaction can be subjective and vary from person to person. Some customers have shared their negative experiences with both companies, while others have expressed satisfaction. Therefore, it is essential to consider multiple factors, such as rates, coverage options, and personal preferences, when choosing between State Farm and Allstate for homeowners insurance.
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Cost
When it comes to the cost of homeowners insurance, State Farm and Allstate are two of the most popular insurance companies, but there are differences in their pricing and the discounts they offer.
State Farm's average homeowners insurance quote is 5% cheaper than Allstate's. State Farm charges an average of $2,427 a year for a typical home, or $202 a month. Allstate's rate averages $2,560 a year, or $213 a month. However, another source states that State Farm's average annual rate is $2,169, while Allstate's is $2,098. These figures are based on national rates, and it's worth noting that rates can vary depending on the state and individual circumstances. For example, Allstate is cheaper for drivers with a DUI conviction or bad credit. On the other hand, State Farm offers a higher bundling discount than Allstate and has cheaper rates when bundling auto and home coverage.
Both companies offer various discounts that can reduce the overall cost of homeowners insurance. Allstate offers an early-signing discount, as well as discounts for paying the policy in full and going paperless. State Farm provides a low-mileage discount for drivers who drive less than 7,500 miles per year, and a discount for mature drivers who complete an approved defensive driver class. Allstate also offers additional benefits, such as Claim RateGuard, which prevents rates from increasing if a claim is filed, and Deductible Rewards, which provides a $100 credit towards the deductible.
It's important to consider that the cost of homeowners insurance may not be the only factor when choosing between State Farm and Allstate. Both companies have their unique coverage options, and it's essential to review the specific details of each policy to ensure it meets your individual needs. Additionally, factors such as customer service, claims handling, and financial stability may also play a role in the decision-making process.
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Discounts
Allstate offers an early-signing discount for buying a policy at least seven days before it begins, as well as discounts for paying the policy in full and going paperless. Allstate also offers a wide array of optional coverages and discounts that you can't get from State Farm, including new car replacement, accident forgiveness, gap insurance, and mechanical breakdown insurance. Additionally, Allstate provides a discount for safe drivers, monitored through a smartphone app, and those with a DUI conviction or bad credit tend to receive cheaper rates than State Farm.
State Farm, on the other hand, offers a higher bundling discount across all states and cheaper rates for auto insurance, making it a more cost-effective option for those seeking to bundle their home and auto insurance. State Farm also provides a low-mileage discount for drivers who drive less than 7,500 miles per year, as well as a discount for mature drivers who complete an approved defensive driver class. Furthermore, State Farm provides a free ADT smart-home security system and a discounted rate for professional monitoring, which can save up to 6% on the homeowners policy.
It's worth noting that rates and discounts can vary based on individual circumstances and location, so it's always a good idea to compare multiple quotes and consider your specific needs when choosing between Allstate and State Farm for homeowners insurance.
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Claims handling
When it comes to claims handling, both State Farm and Allstate have received mixed reviews. Some customers have praised State Farm for its customer service and claim handling, while others have expressed frustration with the company's handling of their claims. On the other hand, Allstate has been criticised for its handling of home insurance claims, with some customers reporting a lack of communication and coordination among different adjusters. However, Allstate has a better National Association of Insurance Commissioners (NAIC) rating, indicating that it receives fewer complaints than similar insurance companies.
In a survey of 2,722 US insurance policyholders, 85% of Allstate customers reported being satisfied with claims handling, compared to 82% of State Farm customers. This survey also assessed satisfaction with the claims filing process, indicating that customers' experiences with claims handling extend beyond the outcome of their claims and include their interactions with the company during the filing process.
State Farm offers a number of benefits that may be advantageous for customers during the claims handling process. For instance, State Farm provides a free ADT smart-home security system to policyholders in select states, along with a discounted rate for professional monitoring. Signing up for this monitoring can save customers up to 6% on their homeowners policy, provided they are willing to share their ADT account and usage data with State Farm. Additionally, State Farm generally includes an additional cushion above the dwelling limit in case rebuilding is more expensive than expected.
Allstate also offers benefits that may impact the claims handling process. With Claim RateGuard, customers' rates will not increase if they file a claim, and with Claim-Free Rewards, they can get 5% back for each year they go without filing a claim. Allstate also offers highly customisable home insurance policies, allowing customers to tailor their coverage to their specific needs.
Ultimately, the choice between State Farm and Allstate for homeowners insurance depends on a variety of factors, including individual circumstances, location, and personal preferences. While State Farm has higher customer satisfaction ratings and cheaper rates for bundling home and auto insurance, Allstate has lower rates for homeowners insurance and a better NAIC rating. Both companies offer unique coverage options and price points, so it is essential to compare multiple quotes and consider your specific needs when making a decision.
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Frequently asked questions
State Farm's default coverage is more generous than Allstate's, but Allstate offers more discounts. State Farm generally includes an additional cushion above your dwelling limit in case rebuilding is more expensive than expected.
State Farm offers cheaper rates on auto and home insurance than Allstate. State Farm's auto insurance rates are 40% cheaper than Allstate for most drivers without a traffic ticket or accident on their records. State Farm's home insurance rates are more expensive without a bundle.
State Farm has higher customer satisfaction ratings than Allstate. 85% of State Farm customers are satisfied with their insurance, compared to 79% of Allstate customers. However, Allstate has a better National Association of Insurance Commissioners (NAIC) rating, which means it gets fewer complaints than similar insurance companies.
Allstate offers highly customizable home insurance policies and is generally held in high regard by customers and rating agencies alike. Allstate also offers a few home and car insurance coverages that State Farm doesn’t, such as new car replacement, accident forgiveness, gap insurance, and mechanical breakdown insurance. Allstate also has three types of roadside service available to customers with and without an Allstate insurance plan.
State Farm provides a free ADT smart-home security system to policyholders in select states, along with a discounted rate for professional monitoring. State Farm also has a number of great options for add-on coverage, making them a good choice for customers looking for flexible coverage or those with unique coverage needs.
