Allstate vs. State Farm Home Insurance: Which Should You Go For?

Allstate vs. State Farm Home Insurance: Which Should You Go For?
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In this article, you will discover the distinctions between State Farm and Allstate Homes Insurance, including coverage benefits, pricing, and customer reviews.

Allstate vs. State Farm Home Insurance Reviews

Allstate Review

As one of the most significant insurance providers, Allstate offers a broad range of coverage options and generally high customer and third-party ratings. Their rates are generally more expensive than those of the majority of businesses of comparable size. 

Allstate coverage:

A common home insurance policy from Allstate includes coverage for personal property, liability insurance, loss of use, dwellings, other structures, and medical costs. 

However, flood insurance is not included in an Allstate standard policy. If your house is located in a high-risk region, like Florida, ask an insurance agent about adding a separate flood policy.

Allstate offers a good basic house insurance policy, but its real strength is the range of add-on coverages that are offered. Among Allstate’s endorsements are:

  • Business property
  • Electronic data recovery
  • Green improvements
  • HostAdvantage
  • Identity theft
  • Musical instruments
  • Scheduled personal property coverage
  • Sports equipment
  • Water backup, including sump pump failure

Pros

  • Offers superior options for longer coverage.
  • It gives you optional identity theft protection and alerts you to data breaches.
  • It maintains an exclusive network of regional representatives.

Cons:

  • Has a customer satisfaction rating that is below average.
  • Has a restricted online quote system that isn’t accessible everywhere.

State Farm Review

State Farm is the biggest vehicle insurance provider in the United States. Using State Farm’s agent network, clients can anticipate a customized experience. Along with favorable evaluations of its financial picture and customer satisfaction, this well-known insurance provider also has great ratings from consumers and reliable outside sources. The Zebra, an independent customer satisfaction study, gave it an overall strong grade.

State Farm coverage

State Farm offers standard house insurance that complies with industry standards. Apart from liability insurance, it also provides coverage for additional living expenses, medical bills, residences, other buildings, and personal goods.

State Farm recommendations particular to a given area may include:

  • Additional dwelling
  • Drain backup
  • Earthquake
  • Fortified roof
  • High-value personal property items
  • Identity theft protection
  • Increased coverage limits for other structures
  • Personal umbrella policy
  • Sinkhole collapse
  • Specialty electronics and computers

Pros

  • Links policyholders with local representatives who are aware of their needs
  • Has fewer complaints from the NAIC than many of its rivals.
  • They provide customer service and claim support around the clock.

Cons:

  • There are varying discounts depending on the user’s location.
  • California is no longer creating new policies.

Allstate vs. State Farm Home Insurance Cost

Based on NerdWallet’s analysis, State Farm and Allstate have average annual homeowners insurance prices that are less than the $1,820 national average. Allstate charges an average of $1,660 annually for coverage, while State Farm’s premiums average $1,500. These sample rates are based on the assumption of $300,000 in dwelling coverage, $300,000 in liability coverage, a $1,000 deductible, excellent credit, and no recent claims.

State Farm was consistently somewhat less expensive than Allstate, even after adjusting for the amount of dwelling coverage. The average yearly rates for each firm for various levels of coverage are listed below.

Dwelling coverage amountAllstateState Farm
$200,000$1,345.$1,160.
$300,000$1,660.$1,500.
$400,000$2,010.$1,840.
$500,000$2,370.$2,235.

Note that the size and location of your house, your credit score, the history of claims made against you, and the policy levels you have selected all affect how much insurance will cost.

Additionally, you should request an estimate to learn how much State Farm and Allstate insurance will cost in your area.

Allstate vs State Farm Home Insurance Discounts

Compared to State Farm, Allstate provides policyholders with more discounts. 

Allstate Discounts

  • Business property
  • Electronic data recovery
  • Green home improvements
  • HostAdvantage
  • Identity theft
  • Musical instruments
  • Scheduled personal property items
  • Sports equipment
  • Water backup, including sump pump failure

State Farm Discounts

  • Bundling home and auto insurance
  • Claims-free
  • Home security
  • Roofing materials
  • Higher deductibles

Allstate vs. State Farm Home Insurance Consumer Experience

You may obtain a quotation, pay your bill, study the fundamentals of insurance, file or follow claims, and more on the comprehensive websites of State Farm and Allstate. The 24/7 live chat option on the Allstate website is one of its wonderful features. In the meantime, State Farm’s primary claims page features a virtual chatbot.

Furthermore, you can see policy details, pay bills, and process claims using the mobile apps provided by both firms. The Allstate app offers a special tool called Digital Footprint that lets you keep an eye on personal data by tracking breaches and finding out which businesses are collecting it.

Need customer support? Both companies have networks of local agents you can call, as well as phone numbers and email forms for contacting representatives.

Allstate vs. State Farm: Claims

Online and mobile claim systems are available from State Farm and Allstate; however, they are limited to car, home, and renter insurance claims as well as windshield glass replacement claims. You must give the business a call directly if you need to file a claim for any other kind of policy. 

The procedure is essentially the same whether you file a claim over the phone or online. In addition to providing your policy number, you will be required to describe the damage and, if you have any supporting images, submit them with your claim. After that, an adjuster will be assigned to you, and they will get in touch with you to go over the claim procedure and the details of your policy.

In the most recent property claims satisfaction study conducted by data analytics company J.D. Power, State Farm performed slightly better than the national average in terms of claim satisfaction.

Allstate vs. State Farm: Getting a Quote

Obtaining rate quotations is a crucial step in the process of comparing insurance carriers. Thankfully, online quotations are available for the majority of the insurance products sold by State Farm and Allstate. If you would rather, you can also acquire a quote by giving an agent a call.

For every organization, obtaining a quote follows the same procedure. Along with personal information that is pertinent to the policy you are purchasing, you will also need to provide information about yourself, such as your address, Social Security number, and birthday. 

Selecting an agent with whom you are at ease is crucial because both State Farm and Allstate use agents. Seek out another agent in your region if the first one you speak with doesn’t seem like a good fit.

Getting a quote should just take a few minutes, whether you do it over the phone or online. Additionally, there’s no obligation to buy insurance right away if you obtain a quote online because you can choose to save it and come back to it at a later time.

Types of insurance Allstate and State Farm offer

Types of InsuranceAllstateState Farm
ATV/off-road vehicle
Boat
Business
Condo
EventThrough a third party (Markel). 
Farm/ranch 
Health
Landlord
Life
Manufactured home
Motorcycle
PetThrough a third party (Embrace).Through a third party (Trupanion).
Phone 
Renters
RV
TravelThrough a third party (Aegis). 
Umbrella

Is State Farm good at paying home claims?

State Farm has been paying out claims for a century, and AM Best has given them an “Excellent” financial strength grade.

Does Allstate Insurance have a good reputation?

With an 853 out of 1,000 rating, the insurance indicates that the majority of Allstate clients are happy with their interactions.

Why is State Farm home insurance so cheap? 

Your home insurance rates at State Farm will be lower the larger your deductible is, but you’ll also have to pay more out of pocket for it.

What is the reputation of State Farm claims?

State Farm gets 4.2 stars out of 5.0 because their customers were satisfied with the company’s customer service throughout the claims procedure. In addition, respondents rated the company’s satisfaction with the settlement or claim outcome at 4.2 out of 5.

Who is State Farm’s biggest competitor? 

State Farm’s biggest competitors are USAA, MetLife, and American Family Insurance.

Why is Allstate so expensive? 

Allstate’s high price is a result of several reasons, such as the way it compensates its agents and the growing expenses of insurance firms. Its higher-than-average rates also take into account damage claims and compensation.

Who is Allstate’s biggest competitor? 

Here is a list of some major insurance companies that compete with Allstate:

  • State Farm
  • GEICO
  • Progressive
  • Farmers Insurance
  • Nationwide
  • Liberty Mutual
  • USAA (primarily serves military members and their families)
  • Travelers Insurance
  • American Family Insurance
  • The Hartford
  • Auto-Owners Insurance
  • Erie Insurance

Is Allstate good at paying claims? 

In comparison to other insurance companies, Allstate pays claims well, according to the most recent claims satisfaction survey conducted by J.D. Power. In comparison to the industry average of 873 out of 1,000, Allstate’s claims process received a score of 889 out of 1,000.

Is Allstate cheaper than Progressive?

Progressive is cheaper than Allstate, as most drivers find it to be a more affordable option. Progressive provides a large range of discounts and resources for customers to get the best deals, like their Name Your Price program and price comparison tool, which explains why it is so affordable.

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References:

Nerdwallet

Marketwatch

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