No, Allstate insurance is generally not cheaper than State Farm. On average across national driver profiles, State Farm consistently offers lower rates for auto, homeowners, and bundled policies. However, the exact cost of insurance depends heavily on your location, credit history, vehicle, and driving record, meaning Allstate can occasionally be the cheaper option for specific high-risk driver categories.
Here is how Allstate and State Farm compare on price, coverage options, discounts, and specific driver profiles to help you determine which insurer is better suited for your budget.
Comparing Average Car Insurance Rates
When evaluating national average premiums for auto insurance, State Farm consistently undercuts Allstate for both basic and full coverage policies. Full coverage generally includes liability, collision, and comprehensive protections, while minimum coverage meets only the legal basic standards set by your state.
For drivers with clean records and solid credit histories, State Farm’s average full coverage auto policies tend to be significantly lower than Allstate’s, sometimes costing hundreds of dollars less per year. State Farm’s minimum coverage options also trend lower on average. Allstate’s base rates are generally higher, which the company often attributes to its feature-heavy policy options, advanced mobile app capabilities, and broader range of specialty add-ons.
While national averages lean heavily in State Farm’s favor, auto insurance rates are calculated locally. State Farm does not write new policies in every state, and regional loss data can cause Allstate to offer competitive or lower premiums in specific zip codes.
How Driving Records Impact Your Premiums
Your personal driving history is one of the most critical factors insurers use when calculating your policy costs. Rates typically increase after moving violations or claims, but Allstate and State Farm penalize specific infractions differently.
Drivers with minor moving violations, such as a speeding ticket or a minor at-fault accident, usually find lower rates with State Farm. State Farm’s premium increases after an initial accident tend to be less severe than Allstate’s.
The cost dynamic changes, however, when looking at major infractions like a Driving Under the Influence (DUI) conviction. While both companies raise rates sharply after a DUI, Allstate is often less expensive than State Farm for drivers with a DUI on their record. State Farm applies steep surcharges for major violations, making Allstate a potentially more cost-effective option if you are seeking high-risk coverage.
The Role of Credit Scores and Age
Insurers in most states use credit-based insurance scores to predict the likelihood of claims, and age remains a primary factor in risk assessment.
For young drivers, teen drivers, and drivers in their early twenties, State Farm routinely offers lower rates. State Farm provides driver-safety education programs specifically aimed at young drivers, which can help offset the higher baseline premiums typically assigned to inexperienced drivers. Allstate’s rates for younger drivers are generally among the highest of the major national carriers.
Credit score handling provides a clear exception where Allstate can beat State Farm. Drivers with poor or poor-to-fair credit often see high rate hikes with State Farm. Allstate’s pricing algorithm tends to be less punitive toward lower credit scores, making Allstate potentially cheaper for drivers working to rebuild their credit.
Homeowners Insurance and Policy Bundling
If you plan to insure both a vehicle and a home, combining your auto and homeowners insurance under one carrier yields bundling discounts.
State Farm’s standalone homeowners insurance rates are generally lower than Allstate’s. When bundled, State Farm’s combined auto and home policies typically remain cheaper than Allstate’s bundled rates.
Allstate, however, offers a wider array of specialized coverage options and add-ons for home insurance. For example, Allstate offers options like claim forgiveness and specialized rider options for home-sharing hosts or specific high-value property types that State Farm may not match. If you need tailored homeowners coverage features, Allstate’s bundle may offer better value even if the base price is higher.
Usage-Based and Telematics Programs
Both insurers offer voluntary telematics programs that track your driving habits via a smartphone app to award discounts.
State Farm offers the Drive Safe & Save program, which gives an initial setup discount and rewards safe habits like smooth braking, controlled acceleration, and low overall mileage. Drivers who rack up few annual miles often benefit substantially from State Farm’s structure.
Allstate offers its Drivewise program alongside a pay-per-mile auto insurance option called Milewise. Drivewise monitors driving behaviors like speed and time of day. For ultra-low-mileage drivers or work-from-home employees, Allstate’s Milewise program—which charges a daily base rate plus a set per-mile fee—can sometimes work out cheaper than a traditional policy from State Farm.
Policy Features and Specialty Coverages
Price is not the only difference between these two carriers; available coverage options can influence overall policy value.
Allstate provides several optional coverages that State Farm does not offer in all regions, including:
- Guaranteed Asset Protection (Gap) insurance, which covers the difference between your vehicle’s actual cash value and what you owe on a loan or lease.
- Deductible rewards that lower your collision deductible for every year you remain claim-free.
- Comprehensive accident forgiveness programs available as an immediate add-on.
- Pay-per-mile options (Milewise) in select states.
State Farm focuses heavily on core coverage options, rideshare driver coverage, and extensive local agent networks rather than niche policy add-ons. If you need gap insurance directly through your auto insurance provider, Allstate’s inclusion of that coverage might make it the necessary choice despite higher standard rates.
Finding the Lowest Rate for Your Situation
Because insurance underwriting models evaluate personal factors differently, standard averages cannot replace personalized quotes. State Farm is generally cheaper for good drivers, families, and homeowners, while Allstate may offer better rates for drivers with poor credit, those seeking pay-per-mile structures, or individuals with a recent DUI.
To secure the lowest price, gather quotes from both Allstate and State Farm using identical coverage limits and deductibles. Be sure to apply all applicable discounts—such as good student rates, paperless billing, anti-theft equipment, and safety features—to see which company delivers the better final offer for your specific profile.
