Allstate vs. Farmers Car Insurance

Allstate Insurance and Farmers Insurance have a lot in common so it can be difficult to decide which car insurance company to use. Both auto insurance companies are billion-dollar corporations and among the largest and most prosperous insurance companies in the United States.

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In terms of size, Allstate is the 2nd largest car insurance provider in the United States, while Farmers Insurance is ranked#5.

However, quality and service (rather than size) are what really matter when seeking an insurer. In addition, the specific type of insurance you need plays a significant factor in decision-making.

Both auto insurers provide a wide range of car insurance products and offer numerous car insurance discounts. In terms of industry awards, customer reviews, and consumer agency ratings however Allstate has been more popular.

In order to decide which the better overall insurer is, let’s take a look at both company profiles and then draw a comparison between them.

About Allstate Insurance

The Allstate Corporation is public company traded under the symbol ALL on the New York Stock Exchange. Founded in 1931, Allstate was originally part of Sears, Roebuck and Co. The corporate headquarters are near Northbrook in Northfield Township in the state of Illinois.

David W. Ellis, a general sales manager, came up with the “good hands” slogan in 1950, and it is still being used today in commercials by corporate spokesperson Dennis Haysbert, who has been promoting the brand since 2004.

In 1952, Allstate opened it’s very first drive-in claims office. In that same year, it also began offering personal liability insurance. Two years later, it introduced residential fire insurance.

The company grew rapidly during the decade between 1950 and 1960, mainly due to a consistent branding campaign. It finally went public in 1991, and became independent in 1995.

Today, Allstate offers a variety of insurance, including car insurance, variable annuities, and life insurance and can provide multi-policy discounts.

About Farmers Insurance

Founded in 1928, Farmers Insurance Group has enjoyed more than 80 years of prosperity. The company was created by two residents of Los Angeles, Thomas E. Leavey and John C. Tyler, who initially called their company Farmers Automobile Inter-Insurance Exchange.

Although the parent company is Zurich Financial Services (located in Sweden) Farmers Insurance is based in Los Angeles. Farmers Insurance has about 25,000 employees that serve 15 million people in 41 states.

Besides auto insurance, collector car insurance, and motorcycle insurance, it also offers many other personal and commercial lines of insurance including life, homeowners, renters, boat, and commercial real estate insurance.

Allstate Car Insurance Ratings

Many industry rating agencies rank car insurance companies based on customer service, financial strength and other factors. In terms of financial strength Allstate has extremely strong ratings with an A+ rating from A.M. Best and an AA- from Standard and Poor’s.

One of the most important annual reports for drivers to review is the J.D. Powers & Associates “National Auto Insurance Study” which measures auto insurance companies based on 5 categories. In the 2010 study Allstate scored the following using a scale of 1 to 5 (with 5 being the highest):

• Contacting Allstate 3/5
• Pricing  2/5
• Overall customer experience 3/5
• Payment and Billing  4/5
• Policy offerings 4/5

Allstate also has a very low turnover with somewhere around 90% of policyholders renewing their policies each term.

While State Farm, Geico and a few other car insurance companies received higher ratings than Allstate in the 2010 National Auto Insurance study.

Allstate still scored very high compared to almost all other providers earning #8 over all on the list of car insurance companies reviewed.

Farmers Customer Service Ratings

Farmers insurance reviews have not been as general positive as Allstate reviews. Consumer reports even ranked Farmers insurance as one of the worst car insurance companies for paying out claims,

The 2010 National Auto Insurance Study results didn’t fare much better ranking Farmers insurance group poorly in almost every category. Farmers score results using a scale of 1 to 5 include:

• Contacting Farmers  3/5
• Pricing  2/5
• Overall customer experience  3/5
• Payment and Billing  2/5
• Policy offerings  2/5

The cumulative score of 13 out of a 20 point maximum clearly shows that Farmers Insurance has a long way to go to compete with companies like Amica Mutual, State Farm, Geico and Allstate.

Allstate vs Farmers

In comparison both are equally well established, starting only within a few years of each other, but Allstate is by far the bigger company, with more financial size, resources, and manpower and seems to have a much higher reputation for claims handling – which is the most important part of a car insurance company!

Who has better car insurance rates – Allstate or Farmers?

This is more difficult to assess as all drivers have unique risk profiles and companies like Farmers and Allstate are competitively priced. They are both considered top insurance companies and both offer numerous car insurance discounts so car insurance quotes could be higher for some people at one insurer than the other.

When shopping for quotes, both companies offer much more choice and flexibility than smaller auto insurance companies.

However when shopping for car insurance its best to review more than just the difference in quotes and take in count the types of coverage, claims handling reputation, customer service reviews and more.

Allstate and Farmers are just 2 of the many cars insurance companies licensed to provide coverage in most states so always compare at least a handful of auto insurance quotes before selecting a provider.

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Related posts:

1. State Farm vs Farmers auto insurance
2. Allstate vs. Amica
3. Allstate vs. State Farm Insurance
4. Allstate vs. Geico