Which insurance company is better, Allstate or State Farm?

Editorial team Published on

State Farm is generally better than Allstate for most drivers because it offers lower average rates and higher overall customer satisfaction scores.

However, "better" depends on your personal driving record, credit score, and coverage needs.

Cost Comparison

  • State Farm is cheaper on average for auto and homeowners insurance across most of the United States.
  • Allstate tends to have higher average rates, but it can be more affordable for specific driver profiles, such as drivers with poor credit.
  • You can review detailed rate breakdowns and see how options compare using U.S. News Car Insurance Guide.

Coverage and Perks

  • State Farm stands out for its large local agent network, strong financial strength ratings (A++ from AM Best), and better discount options for young drivers.
  • Allstate often provides more robust digital tools (like its highly rated mobile app) and extra add-on coverages like accident forgiveness or pay-per-mile options (Milewise).
  • You can learn more about specific policy differences on the LendingTree Insurance Comparison.

Who is the top 5 insurance company?

The top 5 property and casualty insurance companies in the U.S. by market share are State Farm, Progressive, Berkshire Hathaway, Allstate, and Liberty Mutual.

Top 5 Property & Casualty Insurers

  • State Farm: The largest property and casualty and auto insurer in the U.S., holding roughly 10.4% market share.
  • Progressive: A major auto and property insurer accounting for about 7.3% market share.
  • Berkshire Hathaway: Parent company of GEICO and numerous reinsurance operations, holding about 6.0% market share.
  • Allstate: A leading personal lines insurer representing about 5.3% market share.
  • Liberty Mutual: A massive global property and casualty provider with roughly 4.1% market share.

(Note: Rankings can differ if measuring health insurance, where giants like UnitedHealth Group and CVS Health/Aetna lead, or life insurance, where companies like Northwestern Mutual and MetLife rank near the top.)

Is Allstate good at paying out claims?

Allstate has the financial capacity to pay out claims, but policyholders frequently experience lower settlement offers, delays, or a higher-than-average rate of claims closed without payment.

Financial Strength and Ratings

  • AM Best Rating: Allstate holds an A+ (Superior) financial strength rating, which means the company has enough money to pay valid claims.
  • Customer Satisfaction: Allstate scored 882 out of 1,000 in J.D. Power's property claims satisfaction studies, placing it near the industry average.
  • Complaint Volume: The National Association of Insurance Commissioners (NAIC) reports that Allstate receives more consumer complaints than expected for a company of its size.

Claim Payout Statistics

  • No-Payment Closures: Allstate closes roughly 47% to 55% of claims with no payout to the customer, slightly higher than the overall industry average of around 46%.
  • Injury and Settlement Disputes: For personal injury claims, Allstate often fights hard to lower payouts for pain and suffering, as noted in analyses on Justin Ziegler.
  • Evaluation Software: Allstate uses claims software like Colossus to calculate settlement values, which critics and legal professionals argue systematically reduces payout amounts.

Customer Experiences

Opinions on Facebook are mixed, with some users reporting fast, helpful claim handling while others warn about denied claims and sudden rate increases after filing.

What is the #1 auto insurance company?

State Farm is the #1 auto insurance company in the United States by overall market share, holding about 18.6% of the market. However, Progressive has closely rivaled and occasionally edged past it in direct written premium volume.

Largest Providers by Market Share

The top auto insurers based on national market share include:

  • State Farm: ~18.6% market share (traditionally the largest overall insurer)
  • Progressive: ~18.6% market share (leads in commercial auto and trades top spot closely with State Farm)
  • GEICO: ~11.6% market share
  • Allstate: ~10.2% market share
  • USAA: ~6.2% market share (frequently ranked #1 for customer satisfaction and pricing, but restricted to military members, veterans, and their families)

Top-Rated for Quality and Satisfaction

If "number one" means customer satisfaction rather than sheer size, rankings vary by publication:

  • Travelers: Frequently ranked #1 for overall best value and claims satisfaction in consumer guides.
  • USAA: Consistently scores highest for customer loyalty, low rates, and ease of use where eligible.

Who is bigger, Allstate or State Farm?

Yes, State Farm is significantly bigger than Allstate in market share, premium volume, and overall size.

Market Share and Size Comparison

  • State Farm is the largest property and casualty and auto insurance provider in the United States, holding roughly 18% to 19% of the national auto insurance market share.
  • Allstate is smaller, holding approximately 10% of the auto insurance market share and ranking fourth nationwide behind State Farm, Progressive, and GEICO.

Financial Volume (Direct Premiums Written)

  • According to industry data from sources like Reinsurance News, State Farm Group leads the U.S. property and casualty market with over $113 billion in net written premiums.
  • Allstate Insurance Group places lower on the list with roughly $56 billion in net written premiums, making State Farm roughly twice the size by premium volume.

You can read a detailed breakdown of how their policies and offerings stack up on Insurify's Allstate vs. State Farm Comparison.

Which Is Better: Allstate or State Farm?

9 related questions found

Which insurance denies the most claims?

Oscar Health denied 25.3% of in-network claims in 2024, representing the highest denial rate among major national ACA marketplace health insurers.

Health Insurance Denial Rates

  • Oscar Health: Denied 25.3% of marketplace claims.
  • Molina Healthcare: Denied 22% of claims.
  • Ambetter (Celtic): Denied 21% of claims.
  • UnitedHealthcare: Denied 20% of claims (down from 33% the previous year).
  • Kaiser Permanente: Recorded the lowest national rate at approximately 6%.

Homeowners and Auto Insurance Denial Rates

  • Allstate and USAA: Frequently flagged by public reports and consumer data for closing roughly 40% to 50% of property and homeowners claims without payment in high-risk regions.
  • State Farm: Reported home insurance denial rates exceeding 41% to 59% in catastrophe-heavy markets like Florida.

What is the No. 1 insurance company?

State Farm Group is the No. 1 property, casualty, and auto insurance company in the United States by market share.

The top spot can change depending on the category of insurance you need:

  • Auto and Homeowners: State Farm holds the largest market share in the U.S. for personal lines like auto and home insurance.
  • Health Insurance: UnitedHealth Group is the top health insurance provider in the country.
  • Life Insurance: MetLife ranks first for direct premiums written in life and annuity lines, while companies like Northwestern Mutual score highest for customer trust and experience.
  • Global Revenue: UnitedHealth Group and Berkshire Hathaway are the largest globally by total revenue.

How does Allstate compare to State Farm?

State Farm generally offers lower average rates and higher customer satisfaction scores than Allstate, while Allstate provides more robust add-on coverages and unique digital tools.

Here is how the two major insurers compare across key categories:

Cost and Rates

  • State Farm: Typically cheaper than Allstate for both auto and home insurance across most states and driver profiles.
  • Allstate: Generally more expensive on average, but tends to offer better rates for drivers with poor credit scores.

Coverage Options

  • State Farm: Offers all standard coverages (liability, collision, comprehensive) and rideshare add-ons, but lacks options like gap insurance.
  • Allstate: Provides extra add-on perks including gap insurance, custom parts coverage, and accident forgiveness. It also features a pay-per-mile program called Milewise.

Customer Satisfaction and Service

  • State Farm: Scores higher in most J.D. Power customer satisfaction studies for claims handling and customer service, backed by a massive network of exclusive local agents.
  • Allstate: Scores slightly lower in traditional surveys, but frequently earns praise for its user-friendly mobile app and 24/7 digital claim support.

Financial Strength

  • State Farm: Holds an A++ (Superior) financial strength rating from AM Best.
  • Allstate: Holds an A+ (Superior) financial strength rating from AM Best.

You can review a detailed rate breakdown on U.S. News & World Report or read independent provider evaluations on The Zebra.

What are common complaints about Allstate?

Common complaints about Allstate center on difficulties with claims handling, high premiums, and long customer service wait times.

Claim Issues

  • Denied or Low Claims: Policyholders frequently report that Allstate denies valid claims or offers settlements that are far lower than the actual repair or replacement costs.
  • Delayed Payouts and Slow Processing: Consumers state that the company stalls or drags out the claims process, leaving homeowners and drivers waiting weeks or months for resolution.
  • No-Show Adjusters: Reviewers on platforms like Trustpilot share frustrations over scheduled adjuster appointments where no representative shows up.

Billing and Rates

  • Steep Rate Increases: Many customers complain about sudden, significant premium hikes, even after filing minor claims or having a clean driving history.
  • Billing Errors: Consumers report unexpected fees, unexecuted cancellation requests, or unauthorized policy changes.

Customer Service

  • Long Wait Times: Policyholders report spending hours on hold when trying to reach support via phone or waiting weeks for email replies.
  • Unresponsive Communication: General difficulty getting clear explanations about coverage decisions or reaching assigned agents when an issue arises.

Which insurance company has the most complaints?

By absolute volume of complaints, Star Health and Allied Insurance records the highest number of grievances in the insurance sector, driven largely by claim repudiations.

Top Insurers by Complaint Volume

  • Star Health and Allied Insurance: Recorded over 12,000 to 13,000 formal complaints annually, leading the non-life and health sector.
  • Care Health Insurance: Follows with several thousand complaints, ranking second in the health segment.
  • Niva Bupa Health Insurance: Ranks third among health providers for total grievance volume.
  • Life Insurance Corporation (LIC): Holds the highest absolute complaint volume in the life insurance segment due to its massive customer base.

Understanding Complaint Metrics

  • Absolute Volume vs. Scale: Raw complaint numbers often reflect the size of an insurer's customer base or retail market share rather than poor service alone.
  • Proportional Ratios: When measured as complaints per 10,000 claims, companies like Navi General or Shriram General show much higher relative frequencies compared to market giants.
  • Primary Causes: The majority of policyholder grievances across top-complaint firms involve partial or complete claim rejections and delays in processing.