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State Farm Insurance Rates For Teenage Drivers

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While the two top-rated companies can be good choices for coverage, State Farm generally offers lower rates than Allstate.

State Farm Insurance Rates For Teenage Drivers

State Farm Insurance Rates For Teenage Drivers

Written by: Daniel Robinson, Written by: Daniel Robinson Author Daniel is a Guide team editor and has written for various automotive news sites and marketing companies in the US, UK and Australia, specializing in topics related to car financing and maintenance. Daniel is the Guide team’s authority on auto insurance, loans, warranty options, car service and more. Writer

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Edited by: Daniel Robinson, Edited by: Daniel Robinson Author Daniel is a Guide team editor and has written for various automotive news sites and marketing companies in the US, UK and Australia, specializing in topics related to car financing and maintenance. Daniel is the Guide team’s authority on auto insurance, loans, warranty options, car service and more. Senior Editor

When you look at Allstate and State Farm, you’ll see a lot of similarities. Both companies offer a variety of coverage options and have excellent reputations in the auto insurance industry. The main difference between these two popular providers is their affordability. State Farm’s consistently low rates helped it rank highly in our 2023 review of the best auto insurance companies. Allstate ranked 13th in the study, primarily because its premiums are above average.

The Guide Team takes an in-depth look at each company’s coverage options, rates, discounts and customer service to see how they compare. In this article, we’ll give you all the information you need to choose between Allstate and State Farm for your auto insurance needs.

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The Guide Team is committed to providing reliable information to help you make the best decisions regarding your vehicle insurance. Because consumers rely on us to provide objective and accurate information, we have created a comprehensive ranking system to formulate a ranking of the best auto insurance companies. We collected data from dozens of auto insurance providers to rate the companies based on a variety of ranking factors. After 800 hours of research, the final result was an overall score for each service provider, with the insurance company with the most points at the top of the list.

In terms of reputation, Allstate and State Farm receive positive ratings from several organizations.

According to the National Association of Insurance Commissioners (NAIC), Allstate is the fourth largest auto insurance provider in the United States behind State Farm, Geico, and Progressive. The company recorded $27.2 billion in premiums in 2021 and has a 10.4% market share in the auto insurance industry.

State Farm Insurance Rates For Teenage Drivers

Allstate was founded in 1931 and sold auto insurance through the Sears catalog. All-state insurance policies are available nationwide, although discounts and additional coverage vary by state.

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The NAIC reports that State Farm controlled 15.9% of the U.S. auto insurance market in 2021, recording more than $41.6 billion in auto insurance premiums during the year. State Farm has more than 19,000 insurance agents across the country. The company’s auto insurance coverage is available in all states, although it no longer sells new policies in Massachusetts or Rhode Island.

State Farm celebrates 100 years in business in 2022. The company offers affordable rates for most drivers and maintains an excellent reputation in the insurance industry in general.

Standard coverage is easy to purchase from Allstate and State Farm. These general insurance products include bodily injury and property damage liability insurance, uninsured motorist coverage, collision coverage, and comprehensive coverage.

You’ll notice some differences between Allstate and State Farm coverage when it comes to additional policies. Allstate, for example, offers gap insurance that covers the difference between the value of your car and the amount you owe in the event of a total loss. State Farm offers a similar benefit called Payoff Protector®, but it is only available to customers with a loan agreement with State Farm Bank.

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Allstate’s telematics insurance program is called Drivewise®. Drivers can save money by simply activating the program for free in the Allstate mobile app. In addition to tracking safe driving behavior that can result in discounts, Drivewise also includes a collision detection safety feature that helps drivers call for help after an accident.

Drivewise offers driving challenges such as keeping speed under 80 miles per hour and avoiding sudden braking during certain periods. Allstate’s usage-based insurance products are available in 49 states, although drivers in Arkansas, New York, and North Carolina may not qualify for all discounts.

Drive Safe & Save™ is State Farm’s usage-based program. Those who sign up for the program receive instant discounts and drivers can save up to 30% by maintaining safe driving habits. Ride Safe & Save tracks how quickly you accelerate and corner, as well as how often you brake hard. The times you drive most and how often you use your phone in the car are also monitored.

State Farm Insurance Rates For Teenage Drivers

Drive Safe & Save is not available to drivers in California, Massachusetts, or Rhode Island. Like Allstate’s usage-based program, North Carolina drivers may not qualify for certain Drive Safe & Save discounts.

Cheap Car Insurance For Teens And Young Drivers

One of the most significant differences between Allstate and State Farm coverage is price. In our 2023 review, we gave State Farm a 9.3 out of 10.0, while Allstate only received a 7.4. As you can see in the table below, State Farm’s average annual rate is well below the national average, while Allstate’s rate is much higher.

*Note: All estimates are for comprehensive insurance and are based on a standard profile of a 35 year old driver with a clean driving record and good credit history, unless otherwise stated.

Car insurance rates vary widely based on personalized factors like age and driving history, but Allstate generally charges higher average rates for different types of drivers. Here are some cost estimates from Allstate and State Farm covering various driver profiles. All estimates below are for full coverage auto insurance policies.

Allstate and State Farm offer many of the same savings opportunities, such as safe driver discounts and bundling your auto insurance policy with a renters or homeowners insurance policy. But there are also some differences in the discounts they offer.

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State Farm doesn’t offer a full-payment discount, for example, but it does offer a discount for being accident-free for three consecutive years. Policyholders in all states can take advantage of paperless discounts, unlike State Farm customers.

State Farm ranks highly in two major auto insurance studies. In the J.D. Insurance Shopping Study Power, State Farm ranked first among large insurance companies with 877 points out of a possible 1,000. The company ranked third among large insurance companies in the J.D. US Auto Claims Satisfaction Study. Power℠ 2023 with 891 points out of 1,000.

Allstate ranked below average in the Insurance Purchasing Study, with 853 points out of 1,000. Allstate fared much better in the Auto Claims Satisfaction Study, ranking above the national average with a score of 882.

State Farm Insurance Rates For Teenage Drivers

Both Allstate and State Farm have A+ ratings from the BBB, although customer ratings on the BBB are very low for both companies. It is important to note that customers are more likely to report negative experiences to the BBB than positive experiences, and these low BBB customer ratings are common in the insurance industry.

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You’ll see many similarities when comparing Allstate and State Farm. Both companies have a long history of providing quality auto coverage for all types of drivers. However, Allstate’s above-average rates put it well behind State Farm in our ranking of the best auto insurance companies.

To find the best price, simply compare car insurance quotes from several providers. The following insurance companies are ideal choices to include in your search.

Geico is the second largest auto insurance company in the United States according to the NAIC. The company has an A+ rating from the BBB and an A++ financial strength rating from AM Best. Geico also has the highest reputation rating in the industry, with a score of 9.8 out of 10.0. Low prices and a variety of discounts make Geico a smart choice for all types of drivers.

We gave Traveler a 9.5 out of 10.0 rating for coverage options, making it the highest rating in this category. The company offers comprehensive auto insurance policies at an average cost of $1,595 per year, lower than the national average of $2,008 per year. Travelers has been in business for more than 150 years and has an A++ financial strength rating from AM Best.

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The average car insurance rates at Allstate are much higher than State Farm. The average annual cost of a comprehensive insurance policy from Allstate is $2,598. For State Farm, the average annual cost is $1,697.

Geico is second only to State Farm in auto insurance market share. According to the NAIC, State Farm controls 15.93% of the market, while Geico controls 14.31%.

State Farm received a score of 891 out of 1,000 possible points in the J.D.

State Farm Insurance Rates For Teenage Drivers

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