Quick Answer: State Farm Is Usually Cheaper, Allstate Has Strong Tech Discounts
For students, State Farm is typically the lower-priced of the two, especially when you stack its good-student discount (up to 25% with the Steer Clear component) and Drive Safe & Save telematics. Allstate runs a bit higher on base rate but pairs a solid Smart Student discount with Drivewise telematics that can return 20–30% for safe drivers. Pick State Farm for price, Allstate if you want the tech-forward telematics experience and already bundle with them.
State Farm vs. Allstate — Discount Breakdown
| Discount / Feature | State Farm | Allstate |
|---|---|---|
| Good-student discount | Up to 25% (with Steer Clear) | Smart Student (grades + training) |
| Telematics | Drive Safe & Save | Drivewise |
| Max telematics savings | Up to ~30% | Up to ~30% |
| Typical base rate for students | Lower | Slightly higher |
| Bundle strength | Very strong (home/renters) | Strong (home/renters) |
| Best for | Price + family policies | Tech discounts + existing customers |
Read our full State Farm good-student guide »
Why State Farm Leads on Price
State Farm's good-student program is unusually generous: a student under 25 who completes the Steer Clear safe-driving module plus keeps a B average can reach a ~25% discount. Combined with Drive Safe & Save (which tracks mileage and braking via app), a careful student can cut a young-driver premium dramatically. Because State Farm also insures so many family households, the multi-car and bundling math usually beats Allstate.
Where Allstate Shines
- Smart Student: combines good grades, a driver-training course, and "away at school" into one package.
- Drivewise: a transparent app that pays safe drivers 20–30%; great for low-mileage campus life.
- Existing bundlers: if your parents already have Allstate home insurance, the bundle can erase the base-rate gap.
- Accident forgiveness: Allstate's option can protect a student after a first mistake.
Reddit Pitfalls on These Two
From r/insurance: "State Farm kept me on my parents' policy cheapest by far — Allstate's quote was $50 more a month." Another: "Allstate Drivewise gave me 30% but the base rate was so high it only matched State Farm." And: "I didn't know Steer Clear existed and left 10% on the table with State Farm." The pattern: State Farm wins on price, but only if you claim every discount.
Step-by-Step: Pick Between Them
- Quote State Farm and Allstate with identical coverage and your real GPA.
- Add the good-student discount to both; ask State Farm about Steer Clear.
- Run Drive Safe & Save and Drivewise for a month to see real telematics savings.
- If parents bundle home/renters, factor that credit into each quote.
- Choose the lower final number, then re-shop at renewal.
Frequently Asked Questions
Which is cheaper for a college student, State Farm or Allstate?
State Farm is usually cheaper, largely because its good-student discount can reach 25% with Steer Clear and its family bundling is strong. Allstate can close the gap if you already bundle with them.
Does Allstate's Smart Student discount beat State Farm's?
Not on price — State Farm's stack tends to be larger — but Allstate's Smart Student bundles grades, training, and away-at-school neatly, which some families prefer.
Can I run both telematics apps?
You can test both during trial periods, but you can only earn the discount from the carrier you actually buy from. Use the trials to compare, then commit.
Is accident forgiveness worth it for a student?
If the student is a newer driver, yes — Allstate's option (and State Farm's similar feature) can prevent one mistake from spiking the rate for years.
About the Author
Written by Sarah Mitchell, founder of Student Car Insurance Guide. Sarah spent 8 years as a licensed insurance agent helping young drivers and their families find affordable coverage. Every guide on this site is fact-checked against current state regulations and real quote data from major insurers.
Have a question about this topic? Email our editorial team at 1404555604w@gmail.com.
