State Farm vs. USAA Auto Insurance (2024)
When comparing State Farm vs. USAA auto insurance, USAA offers full coverage for $58 monthly, and State Farm’s full coverage is $86/mo. USAA has better rates and customer service ratings but only sells to the military. Compare discounts and rates to see if USAA auto insurance vs. State Farm auto insurance is better.
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Jimmy McMillan
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Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent insurance brokerage. His company specializes in insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast Modern Li...
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UPDATED: Jun 29, 2024
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- USAA insurance has cheaper rates on average than State Farm, but State Farm is also a relatively cheap company in the car insurance market
- USAA and State Farm both have strong financial ratings, good coverage options, and an array of discounts
- State Farm is a good second choice if drivers don’t qualify for USAA auto insurance
USAA and State Farm are some of the best auto insurance companies with affordable rates and good customer service. However, USAA sells auto insurance exclusively to military and veteran families, whereas State Farm sells to all drivers. Since the two companies are comparable, State Farm is a good choice if you don’t qualify for USAA insurance.
However, if you have the choice between USAA or State Farm, you are probably wondering which one you should choose. We go over everything you need to know, from each company’s pros and cons to customer ratings, so keep reading for a comprehensive State Farm vs. USAA auto insurance comparison.
State Farm vs. USAA Auto Insurance Pros and Cons
At a glance, both companies have more pros than cons. To give you a quick look at some of the benefits and disadvantages of both companies, we’ve outlined their pros and cons before we dive into a more in-depth look at rates, discounts, coverages, and more.
USAA Pros and Cons
USAA is one of the most popular options among military members and veterans, as it offers low rates compared to other auto insurance companies. Some of its best pros are as follows:
- Affordable car insurance rates. USAA boasts some of the cheapest average rates for drivers, making it one of the most affordable companies on the market.
- Good customer satisfaction ratings. USAA scores well on customer satisfaction studies and generally has good customer reviews online.
- USAA membership perks. USAA offers shopping discounts, travel deals, and more for USAA members.
These are just a few of the pros of USAA. As for its cons, the biggest con is that USAA is only available to veterans and military members. So while USAA car insurance rates are great and it has good customer service, it only sells to a small portion of drivers.
State Farm Pros and Cons
Like USAA, State Farm also has some great pros:
- Affordable car insurance rates. On average, State Farm has some of the cheaper rates on the market for the majority of drivers.
- Good customer satisfaction ratings. State Farm also has good customer service ratings and reviews.
- Decent range of coverages. State Farm offers all the basic insurance coverages needed to drive legally, as well as add-on coverages.
State Farm does have a few more cons than USAA. While it has some of the cheapest rates on average for most drivers, its range of coverages is smaller than other, more expensive companies. It also is not the cheapest company on average for drivers with bad credit, although it is still one of the better companies price-wise overall.
USAA Car Insurance vs. State Farm Car Insurance: Which one is better?
When looking at State Farm vs. USAA, the companies are similar. USAA does have cheaper insurance rates on average and better customer service ratings overall. If you qualify for USAA, then this is probably the better choice. However, because USAA only sells to a limited customer base, if you aren’t military or a veteran, then State Farm is better than USAA.
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State Farm vs. USAA Auto Insurance Rates
In general, USAA is cheaper than other companies on the market, with State Farm’s being a close second. The table below shows what State Farm and USAA will cost on average for full coverage car insurance and minimum liability insurance coverage.
Insurance Company Rates
Allstate $160
American Family $117
Auto-Owners $87
Farmers $87
Geico $80
Liberty Mutual $174
Nationwide $115
Progressive $105
State Farm $86
Travelers $99
USAA $59
U.S. Average $119
As you can see, State Farm is still fairly low in price, even though USAA has lower average rates, making them both great options for car insurance.
Rates by Credit Score
Your credit score does impact how much you’ll pay for car insurance at State Farm and USAA unless you live in one of the few states where using credit score as a rating factor is banned. The table below shows the average rates for drivers with bad credit scores at USAA and State Farm.
Insurance Company Bad Credit Fair Credit Good Credit
American Family $203 $136 $116
Farmers $269 $160 $140
Geico $148 $99 $82
Liberty Mutual $355 $226 $177
Nationwide $166 $133 $120
Progressive $206 $138 $109
State Farm $200 $117 $91
Travelers $194 $128 $107
Allstate $296 $197 $176
U.S. Average $226 $148 $123
USAA has cheaper rates than State Farm for drivers with bad credit scores, so if you have a poor credit score and qualify for USAA insurance, you should go with USAA over State Farm.
State Farm vs. USAA Insurance Coverages
While both State Farm and USAA are cheaper auto insurance companies, we want to make sure that the coverages they offer are adequate for the majority of drivers. Both insurance companies offer all the basic coverages, such as liability insurance, comprehensive insurance, and collision insurance.
Both USAA and State Farm offer a full array of auto insurance coverages. USAA does offer a few extra add-ons that State Farm doesn’t, but overall the companies are comparable. State Farm may not have some extra coverages like gap insurance, but it does have rideshare insurance and roadside assistance, which aren’t offered by some other insurance companies.
State Farm vs. USAA Discounts
Even at companies with cheaper than average rates, you can still find additional savings with auto insurance discounts.
Both State Farm and USAA offer safe driving programs that can save drivers a significant amount on their auto insurance policy. Besides the safe driving programs, some of the auto insurance discounts that stand out for each company include the following:
- State Farm’s Steer Clear Discount. Drivers under 25 who have been free of accidents and tickets for three years can participate in the Steer Clear program for a discount.
- State Farm’s safety equipment discount. Drivers who own cars with multiple safety features, such as anti-theft devices, can earn a discount.
- USAA’s overseas storage discount. Military members who go overseas and store their unused vehicles can get a discount on car insurance from USAA of over 50% until they resume driving.
- USAA’s loyalty discount. Members whose parents were also USAA members can often get a loyalty discount.
There are a variety of State Farm and USAA car insurance discounts that can help you save on an already cheap policy.
State Farm vs. USAA Usage-Based Insurance Discounts
USAA and State Farm have usage-based insurance programs that offer car insurance discounts to safe drivers. However, usage-based car insurance programs have some differences.
Both USAA and State Farm won’t raise your rates for poor driving performance during the program, which is good. The programs are similar, but State Farm offers its program in more states than USAA.
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State Farm vs. USAA Car Insurance Ratings
Another factor we want to look at for our comparison is State Farm and USAA ratings and reviews. Industry and customer reviews give a clear insight into a company’s customer service and financial stability.
J.D. Power Industry Ratings
Both USAA and State Farm received above-average ratings from J.D. Power’s 2022 study of customer satisfaction. USAA did score slightly higher than State Farm, but both companies did well overall. J.D. Power’s 2022 study of claims satisfaction also ranked both companies highly, with USAA scoring slightly above State Farm again.
Both USAA and State Farm A.M. Best ratings are solid, so neither company is in danger of going bankrupt. This means that both companies can pay out claims easily without financial issues.
Customer Complaints and Reviews
Some of State Farm’s and USAA’s ratings are from different sites.
USAA and State Farm have low customer ratings from the Better Business Bureau (BBB), but this is common. USAA did score slightly better with the BBB than State Farm for customer reviews. The companies’ apps also had similar ratings on the Apple App Store and Google Play.
The Final Word on State Farm vs. USAA
When it comes to USAA insurance vs. State Farm insurance, both companies are very similar in terms of coverage offered and average rates. However, USAA’s insurance is consistently cheaper on average than State Farm, making it the better choice for qualifying customers. If a driver isn’t military or a veteran, though, State Farm is one of the next best choices for affordable rates.
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If you want to find an affordable company in your area, the best thing to do is to find and compare auto insurance quotes from different companies. You can use our free quote comparison tool to see which auto insurance companies are the best for your coverage needs and budget.
Frequently Asked Questions
Can you buy USAA vs. State Farm insurance online?
Yes, you can purchase both State Farm and USAA auto insurance policies online. However, with USAA, you will need to qualify for membership first before you can purchase an auto insurance policy.
How do USAA and State Farm compare to other insurance companies?
Compared to other companies, both USAA and State Farm have lower-than-average auto insurance rates. Both have decent customer service and financial ratings, making them competitive choices in the auto insurance market.
What drivers should get State Farm insurance?
Drivers who don’t qualify for USAA auto insurance should look into State Farm as an option. We recommend getting quotes from a few different auto insurance companies. A company that is cheap for one driver may not be cheap for another driver. Getting quotes will tell you if State Farm is the right choice for you or if a comparable company better suits your needs and budget.
What drivers should get USAA insurance?
Military members and veterans should look into getting USAA insurance, as it offers some of the cheapest rates in the auto insurance market. It also ranks well for customer service and claims handling, making it a great choice for the majority of drivers.
What is the difference between USAA vs. State Farm auto insurance?
State Farm and USAA are both reputable insurance companies, but they cater to different groups of customers. State Farm is a widely recognized insurer that serves a broad range of customers, while USAA primarily provides coverage to members of the military and their families. The main difference lies in their eligibility requirements and target customer base.
USAA vs. State Farm car insurance rates: which ones are better?
It’s difficult to definitively say which company offers better rates as insurance premiums are influenced by various factors such as the driver’s age, location, driving history, and type of vehicle. However, USAA is often recognized for providing competitive rates to its eligible members due to its focus on military personnel. State Farm also offers competitive rates and may be a better option for non-military customers.
Does State Farm or USAA provide better customer service?
Both State Farm and USAA have generally positive reputations for customer service. State Farm has a vast network of local agents who can provide personalized assistance, while USAA is known for its exceptional customer service and high satisfaction ratings among its military customer base. Ultimately, the quality of customer service can vary based on individual experiences and preferences.
Which insurance company has a better claims process: USAA vs. State Farm?
Both State Farm and USAA have streamlined claims processes and strive to provide efficient claim settlements. USAA has often been praised for its smooth claims handling and responsiveness, while State Farm also has a good track record in handling claims. It’s advisable to contact each company directly or consult customer reviews to gather specific information about their claims processes.
Can anyone get insurance from USAA?
No, not everyone can obtain insurance from USAA. USAA membership is limited to active, retired, and honorably discharged military personnel, as well as their immediate family members. However, in some cases, former USAA members may retain eligibility even if they are no longer affiliated with the military. It’s important to check the USAA car insurance eligibility criteria to determine if you qualify for their coverage.
Is USAA car insurance cheaper than State Farm?
USAA compared to State Farm offers cheaper rates on average. USAA’s full coverage rates average $115 per month, while State Farm’s premiums are $164 per month.
How much is USAA full coverage car insurance?
USAA’s full coverage car insurance costs around $115 per month.
Does State Farm offer a military discount?
While State Farm provides a variety of other discounts, a specific military discount is not part of their offerings.
Is State Farm cheaper than USAA?
In general, State Farm’s auto insurance is not cheaper than USAA’s.
How much does USAA’s comprehensive coverage cost?
Comprehensive coverage is typically included as part of full coverage. For full coverage, USAA’s average monthly premium is around $115 per month.
Does USAA offer gap insurance?
USAA’s gap insurance, often referred to as Total Loss Protection, covers the difference between the actual cash value of your vehicle and the remaining balance on your auto loan if your car is totaled or stolen.
Which insurance is better than USAA?
USAA is highly regarded, especially for military members, but State Farm may be considered a better alternative if you don’t qualify
Who is USAA’s biggest competitor?
USAA’s biggest competitors are large insurers that offer competitive rates and good customer service, such as Geico, State Farm, and Progressive.
What are the disadvantages of USAA?
USAA is primarily available to military members, veterans, and their families, which limits its accessibility to the general public.
What is the best car insurance for the military?
USAA is widely considered the best car insurance for military members due to its specialized services and discounts.
Why do people use USAA?
USAA is financially strong, has high ratings for customer satisfaction and claims handling, and offers competitive rates.
How reliable is USAA?
USAA is highly reliable and consistently receives excellent ratings for customer satisfaction, claims handling, and financial strength.
Is USAA more expensive?
USAA often offers lower rates, particularly for its eligible members.
What is USAA best for?
USAA offers a wide range of insurance products, including auto, home, life, and renters insurance.
Who qualifies for USAA?
To qualify for USAA membership, you must be:
- Active Military: Including Army, Navy, Air Force, Marines, Coast Guard, National Guard, and Reserves.
- Veterans: Individuals who have honorably served in the U.S. military.
- Eligible Family Members: Including spouses and children of USAA members.
- Cadets and Midshipmen: Individuals enrolled in U.S. service academies, ROTC scholarship programs, or officer candidate programs.
Is USAA for veterans only?
No, USAA is not for veterans only. While veterans are eligible, USAA also serves active military members, their families, and cadets/midshipmen.
Is USAA or Bank of America better?
Bank of America may be better than USAA as it serves the general public. So, if you’re looking for extensive banking services with a wide network of branches and ATMs, Bank of America may be a better option.
Is Allstate cheaper than USAA?
USAA tends to be cheaper than Allstate, especially for eligible military members.