Overview:

• Allstate and Farmers are similar in many ways, including higher rates, ample coverage options, and affordable add-ons
• Farmers tends to have slightly better rates, though young drivers might see better prices at Allstate
• Allstate has a better usage-based insurance program and roadside assistance, but Farmers offers more coverage options and better customer satisfaction

Choosing the right insurance company is vital to finding the best coverage, especially if you need cheap car insurance. With so many companies to choose from, picking the right one can be challenging.

That’s especially true when you’re considering companies that are very similar. Allstate and Farmers have a lot in common despite their difference in size. Both companies are highly-rated with plenty of policy customization options, though rates are usually higher than with their competitors.

Read on to learn more about Allstate and Farmers and explore your options for coverage with both companies. Then, compare rates to find which company has the best prices for you.

Allstate vs. Farmers – Which company is right for you?

Choosing between Farmers and Allstate can be challenging because they share many similarities. Both companies tend to have higher rates, though Allstate’s prices are generally a bit costlier.

You’ll also find similar coverage and add-on options at both companies. Allstate has a better usage-based insurance program and roadside assistance plan. In fact, Allstate is one of the companies with the best car tracking device program. But Farmers has higher customer service ratings and a longer list of discounts.

In the end, the best company depends on your needs — Allstate might be better for someone else, while Farmers might be the right choice for you. You can learn more about each company below, but remember to keep your needs in mind as you explore what Allstate and Farmers offer.

Is Allstate car insurance good?

Allstate insurance company is the fourth-largest auto insurance company in America for a reason. It might not have the cheapest rates or the highest customer satisfaction scores, but its long list of coverage options, discounts, and add-ons makes it a good choice.

Allstate is known for selling a variety of coverage beyond basic needs. These coverages include:

• Liability
• Comprehensive and collision
• Medical payments or personal injury protection
• Uninsured/underinsured motorist
• Custom parts and equipment coverage
• Roadside assistance
• Rental car reimbursement
• Accident forgiveness
• Rideshare
• Mexico travel
• New car replacement

Although Allstate usually has some of the highest rates for car insurance, most customers report satisfaction with the speed of the claims handling process. Allstate also makes it easy to contact customer service whenever a problem arises.

Is Farmers car insurance good?

Farmers Insurance is a much smaller company than Allstate, only claiming 3% of the market share for car insurance. While it has fewer customers, most report very high satisfaction levels with customer service and claims handling.

Despite being smaller, Farmers’ list of coverage options competes well with larger competitors. You can buy the following coverages when you shop with Farmers:

• Liability
• Comprehensive and collision
• Medical payments or personal injury protection
• Uninsured/underinsured motorist
• Custom parts and equipment coverage
• Roadside assistance
• Rental car reimbursement
• Guaranteed value
• Rideshare
• Full windshield and glass repair
• New car replacement

Although Farmers has better customer service ratings than Allstate, the company struggles with higher rates. While Allstate offers more overall discounts, Farmers has the benefit of being one of the few companies to offer an electric car discount.

Which company has the best rates?

Allstate and Farmers are generally more expensive for car insurance, but you can find affordable rates from either company depending on your demographics.

Farmers usually offers cheaper rates, but you might see lower quotes from Allstate if you’re young or are looking for car insurance in Florida or New York.

You can explore rates from both companies in better detail below, but remember that your rates might be higher or lower.

Allstate vs. Farmers — Rates by Age

Age is important for car insurance companies because young, inexperienced drivers are more likely to get into accidents, drive recklessly, and file claims.

The good news for young drivers is that your rates eventually drop. As long as you keep your driving record clean, your rates will begin to lower around 25.

While many other factors affect your rates, you can check below to get an idea of how much Allstate and Farmers charge different age groups.

Allstate offers lower monthly rates for teen drivers, while Farmers is cheaper for adults 25 and over. This difference highlights why it’s crucial for drivers to compare rates, even if they already have a policy. Allstate might be the cheaper company at the beginning of your driving history, but Farmers offers lower rates once you get older.

Allstate vs. Farmers — Rates by Location

Another vital component in your auto insurance rates is where you live. Farmers is generally a little cheaper than Allstate on a state-by-state basis, but there are several areas where you’ll get a better deal with Allstate.

You can compare how much Farmers insurance vs. Allstate coverage might cost in your state, but keep in mind that your unique circumstances will drastically alter your rates. The rates you see below are what an average 30-year-old woman with a clean driving record might pay.

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, that trend doesn’t hold up in every state — Allstate is cheaper in states like Montana, New York, and Florida.

Allstate vs. Farmers — Rates by Credit Score

Unless you live in California, Hawaii, or Massachusetts, where the practice is illegal, your credit score significantly impacts your car insurance rates. People with low credit scores can pay up to 60% more for insurance.

Your credit score affects your rates for two primary reasons. The first is simple risk assessment — insurance companies assume that people with higher credit scores are more likely to pay their bills on time.

The second reason comes down to claims tracking. Statistics show that people with lower credit scores file more claims than people with excellent scores.

All insurance companies look at your credit, but some are more forgiving of low scores than others. Take a look below to see how Farmers and Allstate treat different credit scores.

Allstate sometimes offers affordable rates, however you’ll probably find better prices elsewhere when your credit score is low. Likewise, Farmers drivers can see an increase of over 60% when they have low credit scores. If your credit score is lower than you’d like, GEICO or Nationwide might be better choices.

You’ll see much higher rates when your score is low, but you don’t have to be stuck paying more forever. Your rates will lower as you make improvements to your credit score.

Allstate vs. Farmers — Rates After a Traffic Citation

While many factors affect your rates, traffic citations can have some of the most dramatic impacts. From speeding tickets to DUIs, even a single incident can cause your rates to spike.

Consider the average price increase for some of the most common incidents to get an idea of how much each citation raises your rates:

• DUI — 74%
• Reckless driving — 70%
• At-fault accident — 42%
• Speeding — 23%
• Distracted driving — 19%

If you get a citation, you should take the time to compare car insurance prices. Like credit scores, some companies are more forgiving than others for different citations.

Farmers and Allstate have very similar rates after most citations, but Farmers usually has slightly lower rates.

If you have multiple violations on your record — especially serious ones — you might be rejected or dropped as an Allstate or Farmers customer. You’ll need to shop with high-risk car insurance companies if you find yourself in this situation. High-risk car insurance is more expensive, but you’ll be able to get the coverage you need to drive legally.

Which company offers the most discounts?

With the price of practically everything rising rapidly, saving money where you can is more important than ever. Keeping this in mind, car insurance companies offer discounts to help customers save money.

Finding discounts you’re eligible for is an essential step in shopping for car insurance and is a deciding factor for many drivers. Allstate has a solid list of discounts that might help you save, including the following:

• Smart student. Allstate knows that teen insurance can be pricey, so it offers the smart student discount to teens who attend school 100 miles away from home, take a driver's education course, or get good grades.
• Multiple policies. Allstate sells a variety of insurance products — you can earn a discount by buying two or more plans.
• Military. Depending on where you live, active military members can save up to 25% on their insurance.
• Anti-theft devices. You might qualify for this discount if you have devices like GPS trackers or audible alarms.
• Anti-lock brakes. Earn this discount if your car comes equipped with anti-lock brakes.
• EZ Pay. A simple way to save a small percentage on your rates is to sign up for automatic monthly withdrawals from your bank account.
• eSmart. Another chance to save a small amount is to agree to paperless communication.
• Early signing. This discount is available if you sign up for your policy at least seven days before it becomes active.
• FullPay. Many drivers prefer to make monthly payments, but you'll save if you pay for your entire policy at once.
• Responsible payer. Allstate will give you a small discount if you haven’t received a notice of insurance cancellation due to missing payments.
• Safe driving club. Earn membership in the safe driving club and a discount by meeting Allstate’s safety requirements.
• New car. As long as you’re the first owner, your insurance rates will be a little lower when you buy a new vehicle.

Allstate’s discount list has solid savings opportunities, and nearly every driver can find something to qualify for.

Farmers slightly outperforms Allstate with its discount options, mainly because it gives discounts for individual anti-theft devices rather than clumping them together. You can find the following discounts with Farmers:

• Affinity. Earn a discount by belonging to an eligible group or being an active or retired military member.
• Multiline. Farmers sells multiple types of insurance, and you can earn a discount if you buy at least one other policy with your car coverage. You’ll earn an additional discount if you have homeowners insurance.
• Multi-car. If your household has multiple vehicles, you can earn a discount if you include them on the same policy.
• ePolicy. Accept paperless documents to earn this small discount.
• Good payer. You'll save if you’ve spent the last 12 months without incurring a late fee for your insurance payment. This discount is not available in California.
• Safe driver. Farmers rewards drivers with zero points against them on their driving record with this discount.
• Distant student. Farmers offers significant savings for students who live more than 100 miles away and don’t take a covered car with them.
• Youthful driver. Earn this discount by adding a driver under 25 to your policy. This discount is only available for policies 12 months or older.
• Good student. Full-time students can earn this discount by maintaining a 3.0 GPA, making the dean’s list or honor roll, staying in the top 20% of their class, or being in the top 20% for standardized testing.
• Shared family car. You might be eligible for this discount if your household has more drivers than cars. Shared family car discount is not available in California.
• On your own. Farmers will give you a discount if you split off an existing parent or guardian’s policy and you’re under 29.
• Mature driver. Also called defensive driver or senior driver, this discount is available in some states to drivers over 55. To qualify, you must pass a driver’s education class.
• EFT. This small discount is available to people who set up automatic payments.
• Pay in full. Drivers who pay for their entire policy at once will receive a small discount.
• Anti-theft devices. You can earn individual discounts for things like homing devices, alarms, and VIN etching.
• Safety devices. While not available in every state, you can earn discounts for items like daytime running lights, anti-lock brakes, and passive restraints.

As you can see, Farmers offers more discounts than Allstate does. One of the reasons why Allstate is more expensive than many competitors is that it lacks a few options for savings.

Allstate vs. Farmers — Third-Party Ratings

When you’re looking for car insurance, it’s important to find a company with the right coverage options, affordable rates, and ample discount opportunities. However, that doesn’t tell you how a company performs and treats its customers.

Third-party ratings are a great way to get a sense of how a company operates. One of the most important ratings to look at are those from A.M. Best, which rates companies on their financial strength. The higher the score, the more likely a company will always be able to pay your claims.

Farmers has an A from A.M. Best, while Allstate has an A+. Although Allstate does better on its financial stability, both scores are excellent.

Another good place to look is the National Association of Insurance Commissioners (NAIC). The NAIC generates ratios for companies based on how many complaints they receive compared to their size. The national average is 1.0 — anything higher means the company gets more complaints.

Farmers’ NAIC rating of 1.91 is lower than Allstate’s 2.73, meaning Farmers gets fewer complaints.

Finally, you should check J.D. Power’s satisfaction surveys for customer service and claims handling satisfaction. It gives companies a score out of 1,000 points on a variety of subjects, including overall customer satisfaction.

Farmers does better with J.D. Power than Allstate, scoring 862 compared to 854. J.D. Power considers Farmers’ score average and Allstate’s below average. Allstate also got an average score for its claims handling, whereas Farmers received an excellent rating.

Which company has the best usage-based insurance program?

The average American drives over 14,000 miles per year. Insurance companies assume that all drivers will put an average number of miles on their car per year and craft rates accordingly.

However, many Americans are finding ways to spend less time behind the wheel, including telecommuting, carpooling, and public transportation. If you drive less than the average American, you might be able to save money with usage-based insurance.

Usage-based insurance programs — also called telematics programs — track your driving behaviors to provide lower rates. Every program is different, but they usually track your miles, driving time, and driving behaviors.

Most major insurance companies offer a telematics program, including Farmers and Allstate. Both programs offer similar savings, though low-mileage drivers might find better savings with Allstate.

Allstate’s Usage-Based Insurance — Drivewise and Milewise

Allstate offers two usage-based programs – Drivewise and Milewise. Milewise is a pay-per-mile policy that can help low-mileage drivers significantly lower their rates. Allstate tracks your miles with a plug-in device, but you’ll need to check with a representative as it isn’t available in every state.

Allstate Drivewise is unique amongst other companies’ telematics programs because anyone can sign up for it, even if you’re not an Allstate customer. It tracks your driving behaviors entirely through your phone, so there’s no need to plug anything into your car.

Allstate policyholders get an automatic 3% discount for signing up, and you have the opportunity to save even more if you practice safe driving habits. You’ll also earn cash back after your first 50 trips for the following:

• Safe stopping. Allstate looks at the number of times you slam on your brakes, which it defines as slowing more than eight mph in one second.
• Safe hours. Late-night trips are statistically more likely to result in accidents or other claims. You'll earn cashback if you drive during safe hours.
• Safe speeds. You can earn cashback by staying under 80 mph.

Drivewise also issues challenges for things like going three days without hard braking. Completing challenges earns you points which you can use to enter sweepstakes or buy gift cards.

Drivewise doesn’t offer the largest savings, but the reward program is a fun and educational way of tracking your driving habits and improving your skills.

Farmers’ Usage-Based Insurance — Signal

Signal by Farmers is a more traditional type of usage-based insurance. Drivers get an immediate 5% discount for signing up and can earn an additional 25% off by practicing safe driving habits.

Signal uses an app to track your driving behavior, meaning you won’t have to plug anything in. The app tracks the following data:

• Mileage
• Speeding
• Hard braking
• Distracted driving
• When you drive

However, you won’t be penalized for trying Signal. Farmers promises that Signal users will never see their rates increase for bad driving behaviors tracked on the app.

The Signal app generates suggestions to improve your driving behaviors and lets you track your trips. Although the app doesn’t have as many features as some of its competitors, Signal reviews are primarily positive.

Which company offers the best roadside assistance?

Roadside assistance is a valuable add-on for your policy that can save you from being stuck on the side of the road. Allstate and Farmers offer roadside assistance, though you’ll find more options with Allstate.

Allstate’s Roadside Assistance

Allstate’s roadside assistance plans are some of the highest-rated on the market. Unlike many insurance companies, Allstate does not require you to buy roadside assistance as an add-on before you can use it. Roadside assistance from Allstate covers the following incidents:

• Towing
• Fuel delivery
• Winching
• Tire changes
• Mechanical adjustments
• Locksmith services
• Jumpstarts
• Trip interruption

Allstate has a pay-per-service option if you don’t have roadside assistance added to your policy. Simply call Allstate roadside assistance and purchase the one-time service you need.

You can add roadside assistance to your policy for as little as $25 a year. If you’re not an Allstate customer, Allstate’s roadside assistance will cost $84 a year or about $7 a month.

Although most people love Allstate’s roadside assistance, some complain that you must pay for services first and be reimbursed later. If you want instant access to roadside services, you might be better with a different company.

Farmers’ Roadside Assistance

Farmers’ roadside assistance is a solid add-on choice for existing customers, but coverage is lacking compared to competitors. Farmers covers the following incidents:

• Towing
• Jumpstarts
• Winching
• Tire changes
• Locksmith services

Although it doesn’t offer as much coverage, Farmers’ roadside assistance is generally affordable. The price you’ll pay depends on your location, but Farmers customers pay between $12 and $36 a year for coverage.

Allstate vs. Farmers – Other Options for Insurance

Allstate and Farmers are large companies, and both sell more than just car insurance. If you’re looking for coverage beyond car insurance, Allstate offers the following options:

• Motorcycle
• ATV/off-road vehicles
• Snowmobile
• Boat
• RV
• Homeowners/renters/condo
• Landlord
• Life
• Business
• Pet
• Travel

Farmers offers a few more options than Allstate, including:

• Motorcycle
• ATV/off-road
• Boat/watercraft
• RV/fifth wheels
• Homeowners/renters/condo/mobile home
• Landlord
• Vacation and vacant homes
• Earthquake
• Flood
• Life
• Business
• Commercial auto
• Personal umbrella
• Pet
• Collectible car

As you saw above, Allstate and Farmers offer discounts for bundling policies. If you need to cover more than your car, buying from the same company is usually a good idea.

When it comes to other types of insurance, both companies receive positive reviews. For example, Allstate’s homeowners insurance offers plenty of add-ons to help protect your home, including water backup coverage and HostAdvantage for short-term rentals.

The chief complaint against Allstate’s homeowners insurance is that rates are generally some of the highest on the market.

Farmers offers three tiers of homeowners insurance — standard, enhanced, and premier. Each tier comes with different levels of coverage and varying rates. Unlike Allstate, Farmers has some of the lowest homeowners rates. However, Farmers does not sell home insurance in every state.

Find the Best Insurance for Your Needs Today

Allstate and Farmers are solid companies with good ratings, extensive coverage options, and ample ways to save. The best choice for you comes down to your unique circumstances, such as your location, driving history, and age.

Comparing quotes is the best way to determine which company would best fit your needs. However, you shouldn’t look at just Allstate and Farmers — comparing rates with as many companies as possible will help you find the best coverage.

Frequently Asked Questions: Farmers vs. Allstate Auto Insurance

Can you buy insurance from Allstate and Farmers online?

Both companies provide an online application for car insurance, which is usually quick. You can also apply for insurance over the phone or through an agent with both companies.

Is Allstate expensive? What about Farmers?

Allstate and Farmers both tend to have higher rates than their competitors, though Allstate is usually a little costlier. However, your rates depend on factors like your age, location, and credit score. You might find Allstate or Farmers offers you more affordable personalized quotes.

Why is Allstate so expensive?

There are a variety of reasons that Allstate usually has higher costs. First, the overall price of insurance is rising everywhere. Allstate also pays a considerable amount in agent commissions, which increases rates. Additionally, Allstate has higher rates for certain demographics – drivers with low credit scores or a DUI are usually charged more.

How do Farmers and Allstate compare to other companies?

While both companies tend to have higher rates, they rank favorably against other competitors in other areas. For example, Allstate customers praise the company’s insurance options and claims handling, while Farmers gets high marks for overall customer satisfaction. However, companies like GEICO, State Farm, and Nationwide might be a better choice for most drivers.

Who should get Allstate car insurance?

Allstate is a great option for young drivers or people with a reckless driving charge on their record, as rates tend to be lower than Farmers. Additionally, Allstate offers a fantastic insurance bundle if you buy a car and home policy.

Who should get Farmers car insurance?

Farmers offers lower rates than Allstate for most demographics, including older age groups, drivers with a DUI, and low credit scores.

What types of insurance does Allstate sell?

Aside from car insurance, Allstate sells homeowners, life, business, and pet insurance, as well as coverage for a variety of different vehicle types.

What types of insurance does Farmers sell?

Farmers has a few more options for insurance than Allstate. Some of Farmers’ most popular insurance products are life, collectible car, homeowners, flood and earthquake, and commercial auto.