Difference between State Farm and Allstate Insurance

Automobile insurance come in many types and sizes that can be regional or national companies that provide policies in every state. Two of the most well known insurance companies that offer automobile insurance are State Farm Insurance and Allstate. Both companies offer the same type of automobile insurance companies to all types of drivers. One interesting fact about these companies is that their company headquarters are located in the state of Illinois.

State Farm Insurance

The State Farm Insurance company was established in 1922 by an individual named George Jacob Mercherle. Initially, the company concentrated on providing automobile insurance coverage only to farmers but expanded to provide coverage for home insurance and life insurance. Today the company has over 17,000 captive agents and employs over 68,000 people who provide service to policyholders that are located in nearly every state.


The Allstate Corporation was established in 1931 and is the largest publicly traded property and casualty insurance company in the United States. The company provides many types of insurance policies which include automobile, property, life insurance and commercial insurance. Allstate provides insurance policies to every states and as a result serves more than 17 million policyholders by over 70,000 company employees.

Types of Coverage

State Farm and Allstate offer the same types of coverages for many types of policies such as an automobile insurance policy. Both companies provide bodily injury and liability as well as collision and comprehensive coverage. State Farm provides automobile policies to standard as well as non-standard drivers based on their amount of risk. Allstate generally provide an automobile policy to all customers but will base the amount of risk for each individual customer.

Policy Riders

Automobile insurance policies that are provided by both companies typically include the same type of policy riders or additions that are included. This includes optional underinsured and uninsured motorist coverage and medical coverage. Each of the companies automobile policies also include personal injury protection or PIP and coverage when a car needs to be rented after an accident.

Financial Performance

The financial performance of each company is based on their ability to meet obligations and to pay claims in the future. State Farm has an AM Best rating of A++ Superior, which is their top rating. The company also has Moody’s rating of Aa1 which indicates excellent quality and low credit risk. Allstate has an AM Best rating of A+ Superior and a Moody’s rating of Aa2 which also indicates excellent quality and a low credit risk.