Allstate vs State Farm - Which is the better company?

by Guest » Thu Dec 13, 2007 05:03 am

State Farm is known to employ more than 60 million individuals dedicated to provide serving millions and providing them with insurance solutions. All state has more than 70 000 professionals offering insurance solutions to millions of individuals.

The consumer's point of view

Consumers are divided in their opinion of the two companies. Some think that State Farm is the better provider while others think Allstate is. There are individuals in our community who believe that since both State Farm and Allstate are big names in the insurance industry, it is hard to compare them both.

State Farm and Allstate seems to have a tough competition between them where they have almost equal votes in their favor. Both State Farm and Allstate share the same amount of criticism too from agents as well as consumers. Individuals have accused one of the 2 companies of denying claims for absurd reasons and the other of not paying claims again for absurd reasons.

The community has a State Farm agent putting his vote in favor of both the companies. The agent says that State Farm gives more importance to professionalism and a sense of healthy competition.

Complaints against State Farm

  • This company is accused of not being clear in their contract with the agents.
  • They have the reputation of overcharging consumers.

The fact of the matter is that, all insurance companies seem to have unhappy customers or employees. Each company has different policies and hence they may or may not suit a customer or an individual looking for employment with that organization.

Related Readings:

I am interested in opening my own auto insurance agency. Can you advise which one is better between Allstate and State Farm? thanks

Total Comments: 91

Posted: Wed Feb 13, 2008 10:38 am Post Subject:

"Don't worry about that right now". If State Farm can't disclose their contract before I commit to them, I'm scared to think what else I have to worry about once I do commit to them.

I would beware of ANY business that practiced this type of logic...seems unethical to me....and seriously I wouldn't commit to a cup of coffee without knowing what was expected in return...and certainly NOTHING contractual! :shock:

Posted: Mon Feb 18, 2008 04:10 am Post Subject:

So can you highlight some of the things that are not favorable to new State Farm agents. All I've heard from every other State Farm agents and employees is how bad the new contract is for the new agents. I think it's called AA97? State Farm wouldn't disclose any of it to me. I think their response was, "Don't worry about that right now". If State Farm can't disclose their contract before I commit to them, I'm scared to think what else I have to worry about once I do commit to them. Allstate wasn't scare to disclose their contract and agreement to me. Makes you wonder...

Anytime somebody gives you an opinion ask the following.

1) What makes you say that?
2) How would you do things differently?

then say...
3) How do you mean?

Expand, isolate and then reinforce every question.

Take everything with a grain of salt and remember that you are the one whose word is on the line. I'd check into both companies, look at the policies of both companies, compensation, training, mentoring, growth, etc. etc. and then make your decision after examining ALL the facts.

If a company will not give you a contract to read over (at your leisure) you need to get out of dodge immediately.

Insurance is a tough business and some agents have no problem taking advantage of the ignorance of newbies.

Posted: Wed Feb 20, 2008 04:48 am Post Subject:

My family has always went with State Farm, until they realized State Farm had been overcharging them. They ended up receiving refunds totalling almost $2,000. The made a transition to a much smaller insurance firm since. I would probably go with State Farm over Allstate though. Something about insurance companies with huge advertising campaigns urk me.

Posted: Tue Mar 11, 2008 04:51 am Post Subject: State Farm/Allstate

Having looked into being a state farm agent and working with Allstate for 7 years, I went independent.

With Allstate, you own your book and thus become an allstate independent agent to some extent. They will buy your book should you decide to sell, at their price. Or, you can sell it to someone, provided Allstate approves of them. You can build a nest egg with them, if you can sell policies with them. That's becoming harder and harder for many agents the way their rates are sky-rocketing as they make a push to scale back their exposure.

State Farm owns your customers. When you retire, you're left with nothing. You have to pay for running your agency the whole time, meeting all of their requirements. But in the end, it's not yours. Might as well work for someone else and save the office expenses. They also dictate when and where locations can be placed.

I chose none of the above. It's all on me, with no financial assistance, but I enjoy being able to quote 12 auto and home companies for each prospective client, increasing my ability to truly shop coverage and cost for each person I speak to. I enjoy helping the customer, not the corporation.

Posted: Wed Mar 12, 2008 05:32 am Post Subject:

Hey Guest, you are sounding to have a great experience in the field of selling insurances. Why don't you join us? I'm sure this community can gain a lot from your expertise.

Waiting to seen you in this community.

Posted: Sat Mar 15, 2008 06:04 am Post Subject:

I'm here now.

I've found these forums are a great way for us to share knowledge and customers to benefit by obtaining the unbiased answers they need.

Posted: Fri Jul 04, 2008 11:35 am Post Subject:

With the fierce competition in the market, it all will depend upon your performance. In addition, you're required to meet their sales obligations in each period, otherwise they may choose not to allow you to use their names.

However, I'd suggest that you do your own research regarding the competitiveness of the products offered by the companies and also contact some of the local agents for insights.

Posted: Fri Jul 04, 2008 11:54 am Post Subject:

Well, there are other aspects to look into....

  • what product you intend to sell?and what the company offers in that line?
  • whether the company's products are competitive enough, as compare to its competitors?
  • what is the socio-economic condition of the market in the locality? is the market capable enough to pay the premium?
  • what is overall market scenario? whether there is enough demand in the market or not?
  • How much the other agents are making?
  • demand in the market, like- if you find that there is a huge demand for small business insurance in the locality, but no agent is offering the right kind of product, you may consider channelizing your business to that line.


Posted: Fri Jul 04, 2008 12:07 pm Post Subject:

I'm looking into entering the insurance agent profession. However, I don't have any experience in this field, neither do I have the license. Well. I'm planning to get the license soon. But I've another issue, I've a pretty bad credit and wud like to know if it'll affect my prospect in becoming the agent?

Any advise will help...Thanx

Posted: Fri Jul 04, 2008 01:44 pm Post Subject:

I've a pretty bad credit and wud like to know if it'll affect my prospect in becoming the agent?

Absolutely, especially with the larger carriers I would think....

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