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.

Featured in

media logomedia logomedia logo
Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • Más de 3 años produciendo contenidos sobre seguros y finanzas personales

  • Principal artífice de la puntuación de calidad de Insurify

Los profundos conocimientos de Courtney sobre finanzas personales van más allá de los seguros y abarcan las tarjetas de crédito, los préstamos al consumidor y la banca. Le encanta crear contenidos prácticos.

Featured in

media logomedia logo
Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 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 December 1, 2024

Save up to $852 by comparing quotes from the top 100+ insurance companies

Excellent
Secure. Free. Easy-to-use.
ProgressiveLiberty MutualAllstate
Advertiser Disclosure

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

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 $45 per month, and State Farm’s is $54 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.

Factor
State Farm
USAA
Insurify Quality (IQ) Score9.39.4
Customer satisfaction score44.2
Average quote: liability only$54$45
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.
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

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
User Reviews
3.2
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3/10
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.
$54/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.
$119/mo

State Farm is the largest U.S. auto insurer by market share and has operated for more than 100 years. Available in all 50 states, State Farm stands out for its customer service, extensive discounts, and optional coverages. The insurer ranked fifth for overall customer satisfaction in the 2023 J.D. Power U.S. Auto Claims Satisfaction Study. Safe drivers can enjoy many State Farm discounts, including ones for young motorists who complete an approved driver training course, for having a vehicle with certain safety equipment, and for going three years or longer without violations or at-fault accidents.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

  • Savings for bundling auto with home, renters, condo, or life insurance

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

  • Accident forgiveness limited to longtime customers with clean driving records

Read more driver reviews of State Farm
Sofia - December 1, 2024
Verified

State Farm

I would not recommend them as they are one of the more expensive insurance companies and many of them will overcharge you.

Bernice - December 1, 2024
Verified

Fair

The price is too high for the elderly.

Donna - November 30, 2024
Verified

It's Okay, Could Be Better

There's too much runaround in getting answers.

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
User Reviews
3.7
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.4/10
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.
$45/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.
$99/mo

USAA exclusively serves current and former members of the military and their immediate families and is still the seventh-largest insurance company in the U.S. by market share. USAA offers banking, investing, and retirement services in addition to numerous insurance products, including auto, homeowners, renters, and more. Auto policyholders can qualify for discounts for bundling, insuring multiple vehicles, and living on a military base. AM Best gives USAA an A++ (Superior) financial strength rating, and the insurer ranked best in most regions in J.D. Power’s Overall Customer Satisfaction Index.

Pros
  • High customer satisfaction

  • 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

  • Customer reviews are mixed for service and claims processing

Read more driver reviews of USAA
Fannie - November 29, 2024
Verified

Excellent

Excellent service.

Susan - November 25, 2024
Verified

New to USAA

I have had limited contact with USAA since I started working with them. I wish my car insurance and homeowners policy were less expensive. I drive less than 50 miles a week and feel I am paying too much.

Andrew - November 25, 2024
Verified

Great Insurance but Expensive

The customer service and claims process are outstanding.

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.

Compare Top Auto Insurers

Rates start at $16 per month

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

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 people with a clean driving history.

Driver Type
State Farm
USAA
Clean driving record$54$45
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 Type
State Farm
USAA
Drivers with a speeding ticket$63$54
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 Type
State Farm
USAA
18-year-old$95$75
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 Type
State Farm
USAA
Drivers with bad credit$82$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 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 slightly cheaper for older drivers.

Driver Type
State Farm
USAA
Senior drivers$39$35
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.

Coverage
State Farm
USAA
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.

Shop for Car Insurance Online

Save up to $852 by comparing quotes from the top 100+ insurance companies

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

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.

Discount
State Farm
USAA
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."
  2. J.D. Power. "2023 U.S. Auto Insurance Study."
  3. J.D. Power. "2023 U.S. Auto Claims Satisfaction Study."
  4. Centers for Disease Control and Prevention. "Keep Teen Drivers Safe."
  5. National Conference of State Legislatures. "States Consider Limits on Insurers’ Use of Consumer Credit Info."
  6. Centers for Disease Control and Prevention. "Older Adult Drivers."
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
  • Más de 3 años produciendo contenidos sobre seguros y finanzas personales

  • Principal artífice de la puntuación de calidad de Insurify

Los profundos conocimientos de Courtney sobre finanzas personales van más allá de los seguros y abarcan las tarjetas de crédito, los préstamos al consumidor y la banca. Le encanta crear contenidos prácticos.

Featured in

media logomedia logo
Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 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.

Compare Car Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Latest Articles

View all