Allstate and State Farm both offer auto insurance options that can work for new drivers. However, neither company is automatically better or cheaper. The stronger choice depends on the driver’s age, years of driving experience, vehicle, state, coverage, discounts, mileage, and willingness to use a telematics program.
State Farm stands out for Steer Clear, which targets qualifying younger and inexperienced drivers. Allstate offers a different mix of features, including Drivewise, optional Accident Forgiveness, Deductible Rewards, Safe Driving Bonus, and Milewise where available. The final decision should still come from comparable quotes using the same drivers, vehicles, limits, deductibles, and optional coverages.
State Farm deserves a close look because Steer Clear targets qualifying drivers under 25 and may also apply to drivers over 24 with less than three years of driving experience in some states.
Allstate offers Drivewise plus optional features such as Accident Forgiveness, Deductible Rewards, and Safe Driving Bonus.
There is no reliable national winner for every new driver. Personalized quotes are necessary.
A New Driver Is Not Always a Young Driver
The term “new driver” covers several different situations. A 17-year-old who just received a license has different insurance needs from a 24-year-old new driver. A 35-year-old first-time driver is different again.
This distinction matters because some Allstate and State Farm savings programs have age, student, or driving-experience requirements. Other programs can remain relevant regardless of whether the driver is a teenager.
New driver under 18
Student discounts, driver training, family-policy pricing, and safe-driving programs may be especially relevant.
New driver under 25
Steer Clear, student savings, telematics, and household-policy options may still apply.
New driver over 25
Many youth-focused discounts disappear, although State Farm notes a Steer Clear exception for some inexperienced drivers in certain states.
First-time driver over 30
Age does not create driving experience. Base pricing, years licensed, vehicle, mileage, coverage, and applicable discounts become more important.
Drivers who received their first license later in life can find car insurance tips for new drivers over 30 that address coverage considerations and pricing factors.
Allstate vs. State Farm for New Drivers at a Glance
This comparison focuses on published program features instead of unsupported national rate averages. Availability and eligibility vary by state.
| Feature | Allstate | State Farm |
|---|---|---|
| Young or inexperienced driver program | Allstate offers student and safe-driving programs, but its current national materials do not present a direct equivalent to State Farm’s Steer Clear. | Steer Clear primarily targets qualifying drivers under 25. State Farm notes that drivers over 24 with less than three years of experience may qualify in some states.[3] |
| Usage-based program | Drivewise uses driving behavior to personalize pricing in eligible states.[1] | Drive Safe & Save adjusts its discount at renewal using mileage and driving characteristics in eligible states.[2] |
| Telematics pricing risk | Allstate explicitly states that high-risk driving can increase the rate in some states. | State Farm says the Drive Safe & Save discount can increase or decrease at renewal but will not add a surcharge. Actual mileage can still affect the underlying premium. |
| Student savings | Smart Student Discount for qualifying unmarried drivers under 25.[4] | Good Student, Driver Training, and Student Away at School savings for qualifying younger drivers.[5] |
| Accident forgiveness | Allstate explicitly offers optional Accident Forgiveness, subject to availability and policy terms.[6] | Do not assume an identical nationwide feature. Verify available protections for your state and policy. |
| Collision deductible rewards | Optional Deductible Rewards can reduce the collision deductible after accident-free years, subject to availability.[7] | No directly comparable nationwide feature is assumed here. Check state-specific options. |
| Pay-per-mile product | Milewise provides a Pay-Per-Mile option and other usage-based structures where available.[8] | State Farm’s national materials emphasize Drive Safe & Save rather than a directly comparable pay-per-mile product. |
| Local-agent access | Available through Allstate agents. | Available through State Farm agents. |
| Digital claims | Claims can be started and tracked through Allstate’s digital tools and mobile app.[11] | Claims can be filed and managed online, through the State Farm app, or by phone.[12] |
Which Is Cheaper for a New Driver: Allstate or State Farm?
There is no responsible way to declare one company universally cheaper for new drivers. Auto insurance premiums depend on the individual driver and the rating rules allowed in that driver’s state.
Factors can include age, driving experience, driving history, location, vehicle, mileage, prior insurance, selected coverage, deductibles, and available discounts.
Why we removed generic Allstate vs. State Farm monthly averages
A useful rate comparison needs a defined driver, ZIP code, vehicle, annual mileage, licensing history, coverage limits, deductibles, and policy options. Without those details, a national monthly number can create false precision.
Instead, request personalized quotes from both companies and keep every major input as similar as possible.
A larger discount does not guarantee a lower premium
One insurer can advertise more discounts and still cost more. Compare the final premium after every savings program that actually applies to you.
State Farm Steer Clear Can Matter for Younger and Inexperienced Drivers
State Farm’s standard national Steer Clear criteria focus on drivers under age 25. State Farm says participants generally must have a valid driver’s license, avoid at-fault accidents and moving violations during the previous three years, and complete the program requirements.[3]
However, there is an important exception for some newly licensed adults. State Farm notes that drivers over age 24 with less than three years of driving experience may qualify in some states. Eligibility varies by state, so an older new driver should ask before assuming the program is unavailable solely because of age.[3]
The Steer Clear program includes training content plus recorded driving experience. State Farm currently describes five training modules and five hours of driving spread across at least ten trips.[3]
Steer Clear may be worth investigating when:
- the new driver is under 25;
- the driver is older than 24 but has limited driving experience and lives in a state where the exception applies;
- the driver meets the required driving-record criteria;
- structured driver training is useful; and
- the resulting State Farm premium is competitive.
Do not automatically rule out Steer Clear. State Farm specifically notes that eligibility for drivers over 24 with less than three years of driving experience applies in some states. Confirm eligibility before comparing the program with Allstate’s options.[3]
Allstate Drivewise vs. State Farm Drive Safe & Save
Both insurers use driving information to provide personalized savings in eligible states. However, their current program rules and pricing language differ.
Drivewise
Allstate says Drivewise provides savings for participation plus personalized pricing based on driving behavior. Pricing is updated at each policy period using recent driving history.[1]
- Operates through the Allstate mobile app.
- Allstate highlights speeding, sudden braking, phone activity, and late-night driving as behaviors that can affect results.
- The program collects geolocation and other driving-related data.
- High-risk driving can increase the rate in some states.
- Drivewise savings are not available everywhere; Allstate currently identifies California and Alaska among exclusions.
Drive Safe & Save
State Farm provides an initial participation discount after enrollment and required setup. It then recalculates the Drive Safe & Save discount at renewal using annual mileage and basic driving characteristics.[2]
- State Farm advertises savings of up to 30%, with state-specific variation.
- The discount amount can increase or decrease from one policy term to another.
- State Farm says Drive Safe & Save will not add a surcharge to the policy.
- Actual mileage can still increase the underlying premium if a previous low-mileage reduction no longer applies.
- The program is not available in California, Massachusetts, or Rhode Island.
Drivewise has a clearer downside warning
Allstate explicitly warns that high-risk Drivewise behavior can raise the rate in some states. State Farm says its Drive Safe & Save discount can vary at renewal but will not add a surcharge. However, higher actual mileage can still affect the underlying premium.[1][2]
The starting premium still matters
A more favorable telematics result does not automatically create the cheaper policy. Compare the starting premium, other discounts, mileage, deductibles, coverage, and final price.
Drivers interested in usage-based insurance can consider safe driving strategies for lower insurance premiums and how telematics programs may affect savings opportunities.
Allstate Smart Student vs. State Farm Good Student Discounts
Both companies offer savings aimed at students and younger drivers. However, the eligibility rules differ.
| Student Feature | Allstate | State Farm |
|---|---|---|
| Primary student savings | Smart Student Discount | Good Student Discount |
| Age | Allstate describes Smart Student eligibility for qualifying unmarried drivers under 25. | State Farm’s student savings can continue until age 25 when eligibility requirements are satisfied. |
| Academic pathway | One pathway is being a qualifying full-time student with good grades. | State Farm lists a 3.0+ GPA, top 20% class ranking, or Dean’s List/Honor Roll among qualifying standards. |
| Other pathways | Allstate also identifies successful teenSMART completion or attending school at least 100 miles from where the vehicle is garaged. | State Farm separately offers Driver Training and Student Away at School discounts to eligible drivers. |
| Published savings | Check the actual Smart Student savings available in your state and on your policy. | State Farm currently advertises Good Student savings of up to 25% for eligible drivers.[5] |
These student programs may no longer be relevant. Do not choose an insurer because of a discount you cannot receive.
Where Allstate May Deserve a Closer Look
Allstate publishes several optional features that can matter after the initial price comparison.
Accident Forgiveness
Allstate says optional Accident Forgiveness can prevent an accident from raising your rate because of that accident, even when the insured driver was at fault.[6]
Deductible Rewards
Eligible customers receive $100 off the collision deductible when they enroll and another $100 after each accident-free year, up to a maximum reduction of $500. Availability and terms apply.[7]
Safe Driving Bonus
Allstate also markets a Safe Driving Bonus for eligible customers after each six-month accident-free period. Availability and policy terms apply.[7]
Milewise
Milewise is Allstate’s usage-based insurance product. Its Pay-Per-Mile option combines a daily rate with a per-mile rate and uses a device to record mileage. Allstate also notes that rates may fluctuate based on certain driving behaviors in some states, so low mileage alone does not determine the final cost.[8]
Optional features can have a cost
Do not treat Accident Forgiveness, Deductible Rewards, or another add-on as free unless your actual quote and policy documents say so. Compare the total premium with and without optional features.
Where State Farm May Deserve a Closer Look
State Farm’s current discount materials identify several opportunities that can be relevant to new and younger drivers. Availability and eligibility depend on the state and policy.[5]
A newly licensed driver may not yet have the three years of driving history required for State Farm’s published Good Driver Discount. Ask which discounts are actually included in the quote instead of assuming eligibility.
Allstate vs. State Farm Coverage Options
Both insurers offer the major personal auto coverage categories. Exact policy forms, requirements, and availability vary by state.
Liability
Both offer bodily injury and property damage liability coverage. The minimum financial-responsibility requirements depend on state law.
Collision
Both offer collision coverage to help pay for covered damage to your own vehicle after a collision, subject to the deductible and policy terms.
Comprehensive
Both offer comprehensive coverage for eligible non-collision losses such as theft, fire, weather damage, vandalism, or other covered events.
UM/UIM
Uninsured and underinsured motorist coverage can be available or required depending on state law and the policy.
Medical coverage
Medical payments or PIP requirements and availability differ by state.
Additional options
Both companies publish additional coverage options. State Farm, for example, lists rideshare coverage, Emergency Road Service, and Rental Car Reimbursement and Travel Expenses. Allstate also offers multiple optional auto protections.[9][10]
Do not let a lower quote hide lower coverage
If one insurer quotes less because it uses lower liability limits or a higher deductible, that is not an apples-to-apples comparison. Match the protection first and compare prices second.
Comparing policies from different insurers can help drivers evaluate pricing, coverage features, and ways to save money when switching car insurance without sacrificing important protection.
Compare Verifiable Service Features, Not Anonymous Testimonials
Customer-service experiences can vary widely. A fair Allstate vs. State Farm comparison should not declare one company easier to deal with based on a few anonymous anecdotes.
Instead, compare service channels that each insurer currently provides.
| Service Feature | Allstate | State Farm |
|---|---|---|
| Mobile app | Allstate’s app provides access to policy information, bills, claims, Drivewise, roadside assistance, digital ID cards, and assigned-agent access.[11] | State Farm provides mobile tools for policy and claim management, roadside services, and Drive Safe & Save functions.[12] |
| Digital claims | Eligible claims can be started and tracked digitally. | Auto claims can be filed online or through State Farm’s app. |
| Agent access | Allstate offers access to local agents and assigned-agent information through its digital tools. | State Farm also provides local-agent service. |
| After-hours access | Allstate currently provides 24/7 chat support. | State Farm says auto claims can be reported online, through the app, or by phone anytime, day or night. |
Those differences show how service can be accessed. They do not prove that either company will handle your individual claim better. Claims outcomes depend on the loss, coverage, policy terms, repair situation, and other circumstances.
Which Insurer May Fit Different Types of New Drivers?
State Farm deserves a close comparison
Steer Clear creates a meaningful State Farm-specific opportunity when the driver meets its age, driving-record, state, and completion requirements.
Quote both
Allstate has Smart Student savings. State Farm has Good Student, Driver Training, and Student Away at School options. Eligibility matters more than the program name.
Compare the rules carefully
Drivewise can increase rates for high-risk driving in some states. State Farm says Drive Safe & Save does not add a surcharge, although its discount can change and actual mileage can affect the underlying premium.
Allstate Milewise may be worth checking
An eligible low-mileage driver may want to compare Milewise with conventional Allstate and State Farm policies.
Allstate has a clear published option
Allstate explicitly markets optional Accident Forgiveness. Compare the feature’s cost and terms with the total State Farm quote.
Focus on what actually applies
Youth and student discounts may be irrelevant, but a State Farm Steer Clear exception may apply in some states if you have less than three years of driving experience. Compare base pricing, telematics, vehicle, mileage, bundling, and coverage.
How to Compare an Allstate Quote With a State Farm Quote
The National Association of Insurance Commissioners advises consumers to provide the same information to each insurer when requesting quotes. That makes the resulting prices much more useful for comparison.[13]
Use the same drivers
Include the same household and regular drivers on both quotes.
Use the same vehicle information
Match VIN, garaging address, estimated annual mileage, ownership, and vehicle use.
Match liability limits
Do not compare a state-minimum policy with one carrying substantially higher liability limits.
Match deductibles
Use the same collision and comprehensive deductibles.
Match optional coverage
Compare UM/UIM, medical coverage, rental, roadside, rideshare, and other options consistently.
Separate discounts from add-ons
Confirm which savings are already included and which optional benefits add cost.
Check telematics terms
Understand the required data, state availability, and possible effect on future pricing.
Compare the final premium
Judge the actual amount you will pay for equivalent protection.
A car insurance quote comparison guide can help drivers evaluate premiums, coverage options, and insurer differences before selecting a policy.
Mistakes to Avoid When Comparing Allstate and State Farm
Using generic national rate averages without matching the driver’s state, age, experience, vehicle, and coverage.
Assuming “new driver” means “teen driver.” A new driver can be 16, 23, 35, or older.
Assuming Steer Clear ends absolutely at age 25. State Farm identifies an exception in some states for older drivers with less than three years of experience.
Joining Drivewise or Drive Safe & Save without understanding data collection, state availability, and pricing rules.
Treating Accident Forgiveness as a normal discount. It is an optional Allstate feature and should be evaluated with its terms and cost.
Comparing different deductibles. A $1,000 deductible can make a quote look cheaper than a $500 deductible while shifting more risk to you.
Leaving required drivers out of the quote. Give both insurers complete and consistent information.
Assuming more discounts means cheaper insurance. The final premium matters more than the number of advertised savings programs.
Allstate vs. State Farm for New Drivers: Frequently Asked Questions
Is Allstate or State Farm cheaper for new drivers?
Neither insurer is universally cheaper. Premiums depend on the driver’s age, experience, state, record, vehicle, mileage, coverage, deductibles, prior insurance, and available discounts. Get comparable quotes from both companies.
Is State Farm better for drivers under 25?
State Farm has a notable program for eligible younger drivers called Steer Clear. However, the program alone does not guarantee State Farm will have the lower premium. Compare an actual State Farm quote with Allstate and other insurers using equivalent coverage.
Can someone over 24 qualify for State Farm Steer Clear?
Potentially. State Farm says eligibility for drivers over 24 with less than three years of driving experience applies in some states. Contact State Farm to verify the rule where you live.[3]
Does Allstate have a student discount?
Yes. Allstate currently describes its Smart Student Discount for qualifying unmarried drivers under 25. A driver can qualify through eligible good grades, successful teenSMART completion, or attending school at least 100 miles from where the vehicle is garaged.[4]
Does State Farm have a good student discount?
Yes. State Farm currently advertises up to 25% savings for qualifying students. Its published criteria include a 3.0 or higher GPA, top-20% class standing, or Dean’s List/Honor Roll status.[5]
Which is better: Allstate Drivewise or State Farm Drive Safe & Save?
It depends on your state and preferences. Allstate says Drivewise can increase rates for high-risk driving in some states. State Farm says its Drive Safe & Save discount can increase or decrease at renewal but will not add a surcharge. Actual mileage can still change the underlying State Farm premium in some situations.[1][2]
Can Allstate Drivewise raise my rate?
Yes, in some states. Allstate states that high-risk driving may increase the rate. It highlights behaviors such as speeding, sudden braking, phone activity, and late-night driving.[1]
Can State Farm Drive Safe & Save add a surcharge?
State Farm’s current Drive Safe & Save page says the discount can change at each renewal based on actual driving but will not add a surcharge to the policy. However, the underlying premium can increase if actual mileage is higher than a previously estimated low-mileage level.[2]
Where is State Farm Drive Safe & Save unavailable?
State Farm currently states that Drive Safe & Save is not available in California, Massachusetts, or Rhode Island. Additional state-specific rules may apply.[2]
Does Allstate offer accident forgiveness?
Yes. Allstate markets optional Accident Forgiveness. Allstate says the feature prevents your rate from increasing because of an accident, even if the insured driver was at fault. Availability and policy terms apply.[6]
What are Allstate Deductible Rewards?
Allstate says eligible customers receive $100 off their collision deductible when they enroll and another $100 for each accident-free year, up to a maximum reduction of $500. The program is optional and not available everywhere.[7]
What is Allstate Safe Driving Bonus?
Allstate says eligible customers enrolled in Safe Driving Bonus can receive a bonus for every six months they remain accident-free. Availability and policy terms apply.[7]
Does Allstate offer pay-per-mile insurance?
Allstate offers Milewise where available. Its Pay-Per-Mile option combines a daily rate with a per-mile rate. Allstate says Milewise pricing may also fluctuate based on certain driving behaviors in some states.[8]
Which is better for a new driver over 30?
Many student and youth-focused discounts become less relevant after age 25. However, State Farm notes that some drivers over 24 with less than three years of experience may qualify for Steer Clear in certain states. A new driver over 30 should compare personalized base pricing, telematics, mileage, vehicle, coverage, bundling, and every discount that actually applies.
Do Allstate and State Farm offer the same coverage?
Both offer core coverage categories such as liability, collision, comprehensive, and various medical or uninsured-motorist options. However, policy forms, optional protections, deductibles, limits, and availability can differ. Match the coverage before comparing premiums.[9][10]
Does the insurer with more discounts always cost less?
No. Discounts are applied to each insurer’s own pricing structure. One company can advertise more discounts and still produce a higher final premium. Compare the actual price for equivalent coverage.
Allstate vs. State Farm: There Is No Universal Winner for New Drivers
State Farm has a meaningful differentiator through Steer Clear. It primarily targets eligible drivers under 25, but State Farm also notes that some drivers over 24 with less than three years of driving experience can qualify in certain states. State Farm also offers Good Student, Driver Training, Student Away at School, and Drive Safe & Save programs.
Allstate offers a different mix of benefits. Drivewise provides behavior-based pricing, while optional Accident Forgiveness, Deductible Rewards, and Safe Driving Bonus may appeal to drivers who value additional protection or rewards. Milewise can also be worth investigating for eligible low-mileage drivers.
For an older new driver, many youth-focused benefits become less important. In that situation, the base premium, coverage, mileage, telematics rules, vehicle, applicable discounts, and deductible choices should carry more weight.
The strongest approach is simple: quote both insurers using the same information and equivalent protection. Then compare the final premium instead of choosing a company based on advertising or an unsupported national average.
See How Allstate and State Farm Fit Against Other New-Driver Options
Allstate and State Farm are only two possibilities. Compare several insurers with the same drivers, vehicles, limits, deductibles, and optional coverages before choosing.
Compare Car Insurance Options for New DriversReferences
- Allstate. Drivewise. Current information on participation, personalized pricing, driving behavior, data collection, and possible rate increases for high-risk driving in some states. ↩
- State Farm. Drive Safe & Save. Current information on enrollment, renewal calculations, mileage, driving characteristics, surcharge treatment, savings, and state availability. ↩
- State Farm. Steer Clear Safe Driver Discount. Current eligibility, driving-record, training, age, and state-specific rules, including the exception for some drivers over 24 with less than three years of driving experience. ↩
- Allstate. Car Insurance Designed for College Students. Current Smart Student Discount eligibility and student-driver savings information. ↩
- State Farm. Auto Insurance Discounts. Current information on Good Student, Driver Training, Student Away at School, Good Driver, Drive Safe & Save, and other savings programs. ↩
- Allstate. Accident Forgiveness. Current Allstate description of its optional Accident Forgiveness feature. ↩
- Allstate. Deductible Rewards and Safe Driving Bonus. Current information on Allstate’s safe-driving deductible and bonus features. ↩
- Allstate. Milewise and Milewise FAQs. Current information on Pay-Per-Mile pricing, daily and per-mile rates, mileage tracking, and driving-behavior effects in some states. ↩
- Allstate. Allstate Auto Insurance. Current overview of liability, collision, comprehensive, uninsured and underinsured motorist coverage, discounts, and other auto options. ↩
- State Farm. Car Insurance Coverage Options. Current information on medical payments, rideshare coverage, Emergency Road Service, Rental Car Reimbursement and Travel Expenses, and other State Farm options. ↩
- Allstate. Allstate Mobile App and Claims Support. Current mobile policy, billing, claim, roadside, and agent-access features. ↩
- State Farm. Auto Claims. Current information on reporting and managing State Farm auto claims. ↩
- National Association of Insurance Commissioners. Consumer Auto Insurance. Consumer guidance on auto insurance coverage and providing the same information when comparing insurer quotations. ↩