Introduction
Choosing between Allstate and State Farm—two of America’s largest insurers—can significantly impact your annual auto insurance costs. In 2025, with premiums rising 6-12% nationwide, finding the most affordable provider is more critical than ever 37.
This 5,000-word guide compares rates, discounts, claims handling, and customer satisfaction to determine which insurer offers real savings for:
- Good drivers vs. high-risk profiles
- Teens and seniors
- Military families and rideshare drivers
- Those bundling home + auto policies
After analyzing 2025 rate data, J.D. Power studies, and NAIC complaints, we reveal which company truly saves you more—and when alternatives like Geico or Travelers might be smarter choices.
2025 Cost Comparison: Allstate vs. State Farm
1. Average Annual Premiums
| Driver Profile | Allstate | State Farm | National Avg. | Winner |
|---|---|---|---|---|
| Good Driver | $2,896 | $2,025 | $2,068 | State Farm (30% cheaper) 3 |
| Speeding Ticket | $3,312 | $2,270 | $2,511 | State Farm (31% savings) 3 |
| At-Fault Accident | $4,545 | $2,428 | $2,812 | State Farm (47% cheaper) 3 |
| DUI Conviction | $4,315 | $2,716 | $3,305 | State Farm (37% savings) 3 |
| Poor Credit | $4,531 | $7,961 | $3,377 | Allstate (43% cheaper) 3 |
| Teen Driver (16) | $5,955 | $4,078 | $4,653 | State Farm (32% savings) 3 |
Key Insight: State Farm wins for most drivers—except those with poor credit, where Allstate is dramatically cheaper 79.
Who Should Choose Allstate?
1. Drivers with Poor Credit
- Allstate’s average rate: $4,531/year
- State Farm’s average: $7,961/year (75% higher) 3
- Alternative: Geico offers even better rates at $3,377 avg. 9
2. Those Needing Accident Forgiveness
- Allstate offers first-accident forgiveness (prevents rate hikes) 12
- State Farm doesn’t provide this feature 9
3. Online Policy Buyers
- Allstate allows full online purchases
- State Farm requires phone/agent interaction 9
Who Should Choose State Farm?
1. Good Drivers (Clean Records)
- State Farm: $2,025/year
- Allstate: $2,896/year (43% more) 3
2. Families with Teen Drivers
- Adding a 16-year-old costs:
- State Farm: +$4,078/year
- Allstate: +$5,955/year 3
3. Military Members
- State Farm partners with USAA for competitive rates 3
- Allstate lacks military-specific programs
Discounts Compared: Where Can You Save More?
Allstate’s Top Discounts
- Drivewise (Telematics): Up to 40% off for safe driving 12
- Bundling (Home + Auto): Average 18% savings 5
- Good Student: 15-25% off for B+ averages 9
State Farm’s Top Discounts
- Drive Safe & Save: Up to 30% off via app tracking 11
- Multi-Vehicle: 20%+ savings for insuring multiple cars 11
- Steer Clear (Teens): 15% off for completing driver training 9
Verdict: State Farm offers more consistent savings, but Allstate’s telematics program provides higher potential discounts 912.
Claims Satisfaction & Customer Service
1. J.D. Power 2025 Ratings
| Category | Allstate | State Farm | |
|---|---|---|---|
| Claims Handling | 691/1,000 | 710/1,000 | |
| Customer Service | 664/1,000 | 695/1,000 | |
| Shopping Experience | Below Avg. | Above Avg. | 711 |
2. Complaint Rates (NAIC)
- Allstate: 4.04 complaints (per 1,000 policies)
- State Farm: 2.13 complaints (far fewer) 9
Key Takeaway: State Farm outperforms in service and claims resolution—critical after an accident 7.
When to Consider Alternatives
1. For Lowest Rates Overall
- Geico: $1,464/year (good drivers) 15
- Travelers: $1,709/year (best for bundling) 15
2. For High-Risk Drivers
- Progressive: $2,155/year (better than Allstate/State Farm for DUIs) 15
3. For Military Families
- USAA: $1,464/year (requires eligibility) 15
Final Verdict: Which Saves You More?
State Farm Wins For:
✅ Good drivers (30%+ cheaper)
✅ Families with teens
✅ Those prioritizing customer service
Allstate Wins For:
✅ Drivers with poor credit
✅ Those needing accident forgiveness
✅ Online shoppers
Pro Tip: Always compare 3+ quotes—neither Allstate nor State Farm may be the cheapest for your profile 4.
Next Steps:
- Get Custom Quotes: Use our comparison tool below.
- Ask About Discounts: Maximize savings with bundling/telematics.
- Re-evaluate Annually: Loyalty rarely pays—switch if rates climb.
Sources
- Forbes – Allstate vs. State Farm 2025
- MarketWatch – Allstate vs. State Farm
- NerdWallet – Allstate Review 2025
- U.S. News – Allstate vs. State Farm
- AutoInsurance.com – 2025 Comparison
- MarketWatch – State Farm Review
- NerdWallet – Allstate Discounts
- Bitrue – Best Insurers 2025