Farm Bureau vs Allstate: Difference and Comparison

Insurance is like an umbrella that provides protection and security from the different problems that can occur in life. It is an essential step in an individual’s and his family’s financial planning. Two renowned companies known for their financial services are Farm Bureau and Allstate.

Key Takeaways

  1. Farm Bureau is a membership-based organization that offers insurance to its members, while Allstate is a publicly-traded company providing insurance to the general public.
  2. Allstate is a larger company with a wider range of insurance products and services than Farm Bureau.
  3. Farm Bureau may provide more personalized service due to its smaller size and focus on members.

Farm Bureau vs Allstate

Farm Bureau is a mutual insurance company that focuses on serving the needs of farmers and rural communities. It was founded in 1939 and has since expanded its offerings. Allstate is a publicly traded insurance company that provides customers with a range of insurance products nationwide. It was founded in 1931 and has since grown. 

Farm Bureau vs Allstate
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The headquarters of the Farm Bureau is in Washington. The primary purpose of establishing the Farm Bureau was to build agricultural awareness and shape the legislation to benefit the more extensive and the smaller farms.

On the other hand, the headquarters of Allstate is in Northfield Township in Illinois. The primary purpose of the establishment of Allstate was to provide financial products and services which could protect customers against the uncertainties of life.

Comparison Table

Parameters of ComparisonFarm BureauAllstate
Year of foundation19111931
HeadquartersWashington, DC Northfield Township in Illinois
CEODaniel D. Pitcher Thomas Jay Wilson
Main aim The main aim of Allstate is to provide financial products and services to protect customers against the uncertainties of life and prepare them for future. The main aim of Allstate is to provide financial products and services to protect customers against the uncertainties of life and prepare them for the future.
ProductsFinancial services, casualty insurance, and property insurance services Health insurance, auto insurance, business insurance, homeowners insurance, and other financial services

What is Farm Bureau?

The full name of Farm Bureau Insurance is the American Farm Bureau Federation or AFBF. It is an insurance company based in the United States and represents the industry of American agriculture. The headquarter of the Farm Bureau is in Washington, DC. The insurance company has an affiliation in over 50 states. The insurance company is a lobbying organization.

The founder of the Farm Bureau is John Barron. The main focus of the insurance company is in the agriculture sector. It mainly serves the United States. The establishment of the insurance company was in the year 1911. The establishment of the insurance company aimed to shape the legislation so that it could benefit the larger and the smaller farms.

The company has various policies that can benefit for-profit activities, like federal subsidies in crop insurance. The Farm Bureau’s statewide formation was in 1950 at the farmers’ meeting held in Saline County in Missouri. The insurance company offers vehicle and fire insurance to the farmers for their farms, which have a self-insurance capability and negotiating power.

The lobbying presence of the Farm Bureau was mainly to favour the large farms. The company retains about 22 registered lobbyists. The insurance company also supported the bill called the Fighting Hunger Incentive Act of 2014, which amended the federal tax laws for permanent extension and expansion of specific expired provisions. This provided an enhanced tax deduction for donations in the food inventory of charitable organizations.

What is Allstate?

Allstate Corporation is an American-based insurance company. The headquarters of the company is in Northfield Township in Illinois. It is a public type of insurance company. It was founded on 17th April 1931. During its foundation, it was a part of Sears, Roebuck, and Co. The CEO of Allstate is Thomas Jay Wilson. The insurance company also has operations of personal lines insurance in Canada.

The parent company of Allstate was Sears till the year 1995. The company has also ranked 79th on the Fortune 500 list, which wrote about the largest United States Corporations in 2019 by the total revenue generated. The name Allstate was given by Sears through a national contest for deciding the new brand of car tires in 1925.

The creation of the logo of Allstate was done by Theodor Conterio in the year 1950. The advertising strategy of Allstate adopted a slogan which was known as “You are in Good Hands”. A sales executive of the company did the creation of the saying. Since then, the company refers itself as Good Hands People. The TV advertisements also featured cupped hand gestures.

The company had spokesman Dennis Haysbert in 2003 for its TV commercials. The main idea was to convey that the insurance company was superior to its competitors. Allstate provides various products like asset protection, wealth transfer, auto insurance, homeowners insurance, inland commercial marine, mobile home, comprehensive personal liability, flood protection loan protection, business succession planning products, variable universal life, supplemental health, acid management and accumulation, and other life and health insurance.

Main Differences Between Farm Bureau and Allstate

  1. The premium rate of the Farm Bureau is lower than the excellent rates of Allstate.
  2. Farm Bureau does not provide any additional discount, while Allstate provides an additional discount on farm vehicles, utility vehicles, and for seniors or newly retired personnel.
  3. The AM Best rating given to Farm Bureau is A+, while the AM Best rating given to Allstate is A++.
  4. The founder of Farm Bureau is John Barron, while the founder of Allstate is General Robert E. Wood.
  5. The slogan of Farm Bureau is “Protecting Family Farms Through Stepped-up Basis”, while the slogan of Allstate is “You are in Good Hands”.
References
  1. https://digitalcommons.law.uidaho.edu/cgi/viewcontent.cgi?article=1119&context=idaho_supreme_court_record_briefs
  2. https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/mercer54&section=28

Last Updated : 13 July, 2023

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