Allstate vs Farmers Insurance

Verdict

Allstate and Farmers Insurance both sell through networks of exclusive local agents backed by direct and independent-agent channels, and both offer more optional coverage than most rivals. Allstate is a publicly traded company and the fourth-largest U.S. auto insurer, with $37.67 billion of private passenger auto premium in 2025 (10.14%). Farmers is sixth, with $13.24 billion (3.56%). Its core insurers are policyholder-owned reciprocal exchanges managed by Zurich-owned Farmers Group, Inc.

Allstate holds the higher financial strength rating: A+ (Superior), affirmed September 2026, against Farmers' A (Excellent), affirmed the same month with a positive outlook. Satisfaction is mixed for both. In the J.D. Power 2026 U.S. Auto Insurance Study Allstate beat the regional average in four of 11 regions and Farmers in two (Florida and the Central region). Farmers finished last in New England and New York. In the 2025 claims study Allstate scored 693 (15th of 20) and Farmers 690 (17th), both below the 700 average. Allstate faces a Texas lawsuit over its collection of driving data. Farmers withdrew Farmers-branded policies from Florida in 2023.

The products overlap more than the companies do. Price will usually decide it, so get quotes from both.

Choose Allstate if

• You drive little and want pay-per-mile coverage through Milewise (21 states and D.C. at the end of 2025).
• You want the higher AM Best rating (A+ vs. A).
• You want Auto Replacement Protection, which replaces a totaled car with a newer or higher-valued one in 48 states and D.C.
• You bundle home and auto and want the renewal guarantee and single-event deductible waiver.
• You live in California or New England, where Allstate ranked third in 2026.

Choose Farmers if

• You want repairs with OEM parts on a car up to 10 years old.
• You want new car replacement for a car totaled in its first two years, where offered.
• You'd use a rental alternative stipend for transit or rideshare instead of a rental car.
• You want accident forgiveness that covers one at-fault accident every three years.
• Your employer or association offers Farmers GroupSelect discounts.

Key differences

Price the same base coverage with each agent, then add only the extras you want so the comparison stays fair. Drivewise and Signal can both raise your rate at renewal (see telematics programs from the major insurers compared). The car insurance quote comparison worksheet helps line up coverage, and captive agents vs independent agents vs buying direct explains what an exclusive agent can quote.