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State Farm vs. Allstate: Comparing Renters Insurance

April 7, 2016
Insurance, Renters Insurance
State Farm vs. Allstate: Comparing Renters Insurance
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If you’re shopping for renters insurance and you’d prefer a familiar brand, it’s hard to go wrong with either State Farm or Allstate.

The insurance titans provide similar coverage features and options at competitive prices, and both enjoy strong financial health — but they do have a few differences. Allstate offers a few more renters insurance discounts than State Farm does, while State Farm fared better in a 2015 customer satisfaction survey by an independent ratings agency.

Here’s a closer look at how they compare.

Renters insurance coverage and costs

State Farm and Allstate offer similar renters insurance policies, which include:

  • Personal property coverage, which pays to replace your possessions if they’re damaged or stolen, whether the loss occurs at your home or away from it.
  • Personal liability coverage, which pays for repairs of damage and treatment of injuries you cause to others.
  • Coverage for additional living expenses (such as hotel bills) if your home is destroyed in a disaster covered by your policy.

Both also offer optional additional liability coverage, identity theft restoration coverage, and riders which cover the full value of jewelry and other high-dollar items. Standard renters insurance policies cap the amount they pay for jewelry at $1,500 per item.

Renters insurance is a wise investment and a good value; the average annual premium in the U.S. is $188, according to the Insurance Information Institute. Costs vary depending on where you live, the optional coverages you choose, and your deductible. A deductible is the amount that’s subtracted from your insurance claim check for a property claim. The higher your deductible, the cheaper your rates.

Discounts

State Farm and Allstate offer “bundling” discounts for customers who buy both renters and auto insurance from them. State Farm customers can save up to 10% when they bundle. Allstate’s website doesn’t specify a discount amount; ask your local agent for details.

Here are some additional discounts for renters:

State FarmAllstate

  • Home alert protection. Save between 2% and 10% when you install a warning system, such as a smoke detector or burglar alarm, in your home or apartment.

  • Claims-free history. Save between 5% and 20% depending on your location and the length of time since your last claim.

  • Safe home. Save up to 15% if your rental home is equipped with security devices or fire alarms.

  • Easy pay. Save up to 5% if you have your renters insurance payment automatically withdrawn from your checking or savings account.

  • Age 55 and retired. Save up to 25% if you’re 55 or older and not seeking full-time work.

  • Claim-free. Save up to 20% and receive bonus savings for every year you don’t file a claim.

Customer service and satisfaction

Both State Farm and Allstate have vast networks of agents across the country and 24/7 customer support via telephone. Both companies also provide online account management features. You can use their websites to pay your bill, make policy changes, and file and track insurance claims.

State Farm beat Allstate for customer satisfaction in a 2015 J.D. Power study of 14 large companies’ renters insurance coverage. State Farm’s renters insurance earned a rating of 813 points out of 1,000, outranking Allstate’s score of 797.

Financial strength ratings

Both Allstate and State Farm have earned superior financial stability ratings, which means they’ll likely be able to pay claims now and in the future. State Farm enjoys the highest financial strength rating available, A++, from ratings company A.M. Best. The company gives Allstate an A+, its second-highest rating.

Next steps

State Farm and Allstate are both good options for renters insurance coverage. With so many similarities between the two insurers, it makes sense for you to get quotes from both — and other companies — to see which offers the best deal for you.

Juan Castillo is a staff writer at NerdWallet, a personal finance website. Email: jcastillo@nerdwallet.com. Twitter: @JCastilloNerd.

This article was updated. It was originally published Oct. 31, 2014.


Image via iStock.