State Farm vs. USAA: Which Is the Best? (2024)

USAA has cheaper average rates and ranks higher in customer satisfaction than State Farm, but you must be affiliated with the military to buy a policy.

Kim Porter
Written byKim Porter
Kim Porter
Kim Porter
  • Co-authored the book “Future Millionaires’ Guidebook”

  • 13 years writing personal finance content

A former chief copy editor at Bankrate and past managing editor at Macmillan, Kim specializes in writing easy-to-understand, actionable personal finance content.

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Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • 3+ years producing insurance and personal finance content

  • Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated March 1, 2024 at 11:00 AM PST

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State Farm and USAA are two well-known car insurance companies with large market shares in the car insurance industry.[1] Both companies also offer insurance products and other financial services across the U.S.

It’s always a good idea to compare multiple companies before buying a car insurance policy because insurers calculate rates differently based on your driving record, gender, ZIP code, marital status, and age.

Here’s a look at how State Farm’s and USAA’s customer service, coverages, and rates compare to help you choose the best car insurance company for you.

Quick Facts
  • The average cost of USAA liability car insurance is $46 per month, and State Farm’s is $53 per month.

  • Both insurers offer several discounts and programs to help you save.

  • Only active and retired military members and their families can buy car insurance policies with USAA.

State Farm vs. USAA: The verdict

State Farm and USAA offer similar discounts, insurance products, and competitive rates, but their availability may help you choose the best one for you.

State Farm sells car insurance policies in every state except Rhode Island and Massachusetts. USAA is available nationwide, but only current military members, veterans, and family members can buy a USAA car insurance policy.

If you’re eligible to buy a policy with either company, price and reputation can help guide your decision. USAA has more affordable average rates compared to State Farm, and it earned higher ratings in J.D. Power’s 2023 U.S. Auto Insurance Study and 2023 U.S. Auto Claims Satisfaction Study.[2] [3]

State Farm is still a solid option, with some of the lowest prices among all insurance companies and strong customer service and claims-handling ratings in every region of the country. Both insurers also have the highest financial strength rating from AM Best, meaning they each have the financial stability to pay out claims when necessary.

FactorState FarmUSAA
Insurify Quality (IQ) Score4.54.5
Customer satisfaction score44.2
Average quote: liability only$53$46
Number of available discounts1010
Number of states where it operates48 50
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company.

    Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.

State Farm

State Farm is the largest auto insurance company in the U.S by market share.[1] It has earned a reputation for excellent customer service and a smooth claims process.

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$53/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$115/mo

State Farm has been in business for more than 100 years, and today sells auto and other vehicle insurance, homeowners, life, health, pet, disability, and small business insurance. Available in all 50 states, State Farm car insurance policies offer multiple ways to save, from customizing coverage types, to a robust list of discounts. The company has far fewer complaints than expected for the industry, according to the National Association of Insurance Commissioner’s Consumer Complaints Index. State Farm also ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power Overall Customer Satisfaction Index.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

I am happy with their coverage. I just bought a new car, and my insurance quadrupled. YIKES.

Stacy - December 4, 2023
Verified

Friendly service.

John - December 4, 2023
Verified

Got insurance established fast.

Robert - December 3, 2023
Verified
Read our State Farm review

USAA

USAA doesn’t have as much of a market share as State Farm, but it routinely outperforms other insurers in customer service and claims satisfaction.

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$46/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$100/mo

In business for more than 100 years, USAA exclusively serves members of the military and their immediate families. The company offers multiple types of insurance products, as well as banking, investing, and retirement services. Auto insurance customers have access to a number of discounts, including for bundling, insuring multiple vehicles, living on a military base, and more. A.M. Best gives USAA an A++ rating for financial strength, and the company had the highest or second-highest rating of all insurers in every region in J.D. Power’s Overall Customer Satisfaction Index. Customer reviews are mixed for service and claims processing.

Pros
  • Low premiums

  • SafePilot program rewards good driving with up to 30% discount

Cons
  • Only available to active-duty military, veterans, military spouses, or children of service members or veterans

  • No 24/7 customer phone support

They have stopped thinking about how today's financial strain is impacting their customers.

Darcy - November 26, 2023
Verified

Not satisfied with price hike even after lowering coverage.

Linda - November 3, 2023
Verified

Wonderful service, pricing, and care.

Robert - October 24, 2023
Verified
Read our USAA review

State Farm Drive Safe & Save vs. USAA SafePilot

State Farm and USAA both offer telematics car insurance programs, in which an app tracks and collects your driving information. Driving carefully and defensively will generally help lower your premiums.

With State Farm’s Drive Safe & Save program, you get an initial discount of 5% when you register and an additional discount of up to 30% as your policy renews. You save money when you practice safe driving habits, like avoiding quick acceleration and speeding. Drive Safe & Save is available in all states except California, Massachusetts, and Rhode Island.

USAA’s SafePilot is similar: You get an instant 10% discount when you enroll and can save up to 30% each time you renew your policy. Your discount amount depends on your driving performance, so safe driving habits help you save more. SafePilot is available in all states except California, Delaware, and New Jersey, and some restrictions apply in Massachusetts.

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State Farm vs. USAA: Which is the cheapest?

Compared to State Farm, USAA offers cheaper car insurance coverage for most driver profiles. But your specific premium will depend on personal characteristics like where you live, your driving record, credit history, age, and more.

USAA: Cheapest for drivers with a clean driving record

Drivers with a clean record pay the lowest rates for car insurance. Between the two insurers, USAA offers lower average premiums for drivers with a clean driving history.

Driver TypeState FarmUSAA
Clean driving record$53$46
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

USAA: Cheapest for drivers with a speeding ticket

People with a speeding ticket on their record often pay more for car insurance because insurance companies consider them at a higher risk of filing a claim.

Compared to State Farm, USAA has lower average rates for drivers with a speeding ticket.

Driver TypeState FarmUSAA
Drivers with a speeding ticket$59$53
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

USAA: Cheapest for teen drivers

Teens pay more for car insurance because they lack driving experience and are at a higher risk of getting into a car accident.[4] USAA’s car insurance rates are often lower for teen drivers compared to State Farm, helping them save money on coverage.

Driver TypeState FarmUSAA
18-year-old$87$70
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

USAA: Cheapest for drivers with bad credit

Most states allow insurance companies to use your credit history when calculating rates, and drivers with bad credit pay more than drivers with good credit scores.[5] Again, USAA has cheaper average rates than State Farm for drivers with poor credit.

Driver TypeState FarmUSAA
Drivers with bad credit$83$58
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

USAA: Cheapest for senior drivers

The risk of injury or death in a car accident increases as you get older, so senior drivers may start paying more for car insurance around age 70.[6] USAA’s average car insurance rates are cheaper for older drivers.

Driver TypeState FarmUSAA
Senior drivers$38$36
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Compare coverages: State Farm vs. USAA

State Farm and USAA offer basic coverage types, including liability coverage, uninsured/underinsured motorist coverage, personal injury protection, collision insurance, and comprehensive insurance.

Both companies also offer several add-ons that are less common. One key difference is that USAA offers accident forgiveness and pay-per-mile insurance, while State Farm doesn’t.

Neither car insurance company offers traditional gap coverage, but State Farm has Payoff Protector for its auto loans, which acts like gap insurance, and USAA offers car replacement assistance.

Here’s a look at State Farm and USAA auto insurance coverages.

CoverageState FarmUSAA
Gap insuranceNoNo
Roadside assistanceYesYes
Rental reimbursementYesYes
Rideshare insuranceYesYes
Medical paymentsYesYes
Accident forgivenessNoYes
Pay-per-mile insuranceNoYes
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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Compare discounts: State Farm vs. USAA

Car insurance discounts can help lower your premiums if you qualify for them. If you’re eligible for USAA car insurance, it has a few more discounts than State Farm, which gives you more opportunities to save on your coverage.

DiscountState FarmUSAA
Clean driving recordYesYes
Defensive driving courseYesYes
Multi-policyYesYes
Multi-carYesYes
Low mileageNoYes
Telematics (safe driving app)YesYes
Anti-theft deviceYesYes
New/safe carYesYes
Military/affiliationNoYes
Good studentYesYes
LoyaltyNoYes
Auto payNoYes
Student away at schoolYesYes
HomeownerNoNo
Alternative fuelNoNo
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm vs. USAA FAQs

The following information provides more insight if you still have questions about how State Farm’s and USAA’s coverages and rates compare.

  • Is State Farm insurance or USAA better?

    USAA typically offers lower car insurance rates than State Farm and earns better ratings when it comes to the claims process and customer satisfaction. But USAA auto insurance is only available to members of the military community and their family members.

    State Farm is also a good choice because the company offers affordable rates, several discounts and add-ons, and strong customer service.

  • What are the main differences between State Farm and USAA insurance?

    The key difference is that USAA car insurance policies are only available to current and former military members and their families, while State Farm doesn’t have eligibility requirements. USAA also tends to perform well in customer satisfaction studies, offers lower rates for most driver profiles, provides more advertised discounts, and sells more add-on coverages.

  • Who is eligible for a USAA policy?

    USAA car insurance policies are only available to current and former service members and their families.

  • What additional services do State Farm and USAA offer?

    State Farm and USAA offer property insurance, business insurance, investing products, and banking services like checking accounts, credit cards, and consumer and business loans.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. NAIC. "022 Property and Casualty Market Share." Accessed February 26, 2024
  2. J.D. Power. "2023 U.S. Auto Insurance Study." Accessed February 26, 2024
  3. J.D. Power. "2023 U.S. Auto Claims Satisfaction Study." Accessed February 26, 2024
  4. Centers for Disease Control and Prevention. "Keep Teen Drivers Safe." Accessed February 26, 2024
  5. National Conference of State Legislatures. "States Consider Limits on Insurers’ Use of Consumer Credit Info." Accessed February 26, 2024
  6. Centers for Disease Control and Prevention. "Older Adult Drivers." Accessed February 26, 2024
Kim Porter
Kim Porter

Kim Porter is a writer and editor who's been creating personal finance content since 2010. Before transitioning to full-time freelance writing in 2018, Kim was the chief copy editor at Bankrate, a managing editor at Macmillan, and co-author of the personal finance book "Future Millionaires' Guidebook." Her work has appeared in AARP's print magazine and on sites such as U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, and more. Kim loves to bake and exercise in her free time, and she plans to run a half marathon on each continent.

Courtney Mikulski
Edited byCourtney MikulskiSenior Editor, Auto
Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • 3+ years producing insurance and personal finance content

  • Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

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Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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