USAA Vs. State Farm: Which Is The Best Provider?
When it comes to USAA vs. State Farm, we rate State Farm slightly higher overall because it has better availability and better technology features.
Find out if you’re paying too much for auto insurance here.
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Key Points:
- USAA and State Farm are among the top auto insurers in the nation, but USAA is only available to military members and their families, while State Farm is available to most drivers.
- USAA is cheaper for 20-year-olds and drivers with speeding tickets or poor credit but State Farm is cheaper for drivers with accidents and DUIs.
- The best way to find great car insurance rates is to compare quotes from different providers.
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USAA and State Farm are two of the best options for auto insurance nationwide, but which is right for you? In this review, we compare USAA vs. State Farm coverage, cost, discounts, and more to help you decide where you should purchase your next car insurance policy.
In our review of the best car insurance companies in the United States, USAA and State Farm both made the top four. We recommend getting a quote from each insurer so you can compare your own costs and coverage. Besides the car insurance company you choose, factors like your age, vehicle make and model, and driving history can also affect your quote.
USAA And State Farm Overview
Both USAA and State Farm are national car insurance providers that offer great service and coverage. While USAA car insurance is the best car insurance for veterans, military members, and their families, State Farm auto insurance is a great alternative, especially for teens and student drivers.
In fact, considering its nationwide availability and wide range of features, we rated State Farm ahead of USAA by a small margin.
Here’s an overview of what we found when we compared USAA vs State Farm.
| USAA | State Farm | |
|---|---|---|
| Overall Rating | 4.5 | 4.7 |
| Superlative | Best for Military Members | Best Overall Provider |
| Availability | For military members,
available in 50 states | No restrictions,
available in 48 states* |
| Coverage | 4.8 | 4.6 |
| Cost | 4.7 | 4.3 |
| Customer Service | 4.3 | 4.5 |
| AM Best Financial Strength Rating | A++ | A++ |
| J.D. Power 2023 Auto Claims Satisfaction Rating | 900/1,000 | 891/1,000 |
| Mobile App Google Play Rating | 4.0 | 4.7 |
| Mobile App Apple App Store Rating | 4.8 | 4.8 |
*Although State Farm advertises nationwide availability, the company is no longer taking on new customers in Massachusetts or Rhode Island.
USAA Vs. State Farm: Coverage
To determine your coverage needs, assess your state’s mandated auto insurance coverage requirements and your own driving history. This will tell you what basic car insurance coverage you need to drive legally in your state and the types of insurance coverage you might want to consider adding to protect yourself and your finances.
Some of the standard types of car insurance that you could purchase from both State Farm and USAA include:
- Liability insurance: Bodily injury (BI) and property damage (PD) insurance are required in most states to cover the injuries and property damages of other drivers in accidents you cause.
- Collision insurance: This type of protection covers the cost of damages your car sustains in an accident, no matter which party was at fault.
- Comprehensive car insurance: This type of coverage protects your vehicle after it is damaged by hazardous weather conditions (hail, fire, floods, etc.), animals, vandalism, and theft.
- Personal injury protection (PIP): PIP covers your medical expenses and those of your passengers after an accident.
- Medical Payments (MedPay): MedPay covers the cost of medical bills for you and your passengers after an accident, regardless of who was at fault.
- Uninsured/Underinsured Motorist (UM/UIM): UM/UIM policies help pay for repairs to your vehicle if you’re in an accident with another driver who doesn’t have insurance or whose insurance doesn’t cover the full cost of your repairs. UM/UIM coverage is mandatory in some states.
Both providers also offer other forms of auto insurance coverage that can be purchased for an additional charge. Some of these add-on options include roadside assistance and rental car reimbursement.
When comparing USAA vs. State Farm car insurance, both providers offer a variety of choices for coverage.
| USAA | State Farm | |
|---|---|---|
| Bodily Injury Liability | ✓ | ✓ |
| Property Damage Liability | ✓ | ✓ |
| Collision | ✓ | ✓ |
| Comprehensive | ✓ | ✓ |
| Personal Injury Protection | ✓ | ✓ |
| Medical Payments | ✓ | ✓ |
| Uninsured/Underinsured Motorist | ✓ | ✓ |
| Roadside Assistance | ✓ | ✓ |
| Rental Car Reimbursement | ✓ | ✓ |
| Rideshare Insurance | ✓ | ✓ |
| Glass Coverage | ✓ | ✓ |
| Guaranteed Asset Protection (GAP) | ✓ | On State Farm Bank loans |
| Accident Forgiveness | Some states | |
| Car Replacement Assistance (CRA) | ✓ |
USAA Vs State Farm: Cost And Discounts
The cost of car insurance rates depends on many factors, such as your location, demographic information, the company you choose to underwrite your policy, and the discounts available to you. The best way to find out whether USAA or State Farm offers cheaper car insurance is to get quotes from both.
Is USAA Cheaper Than State Farm?
Yes, our research shows that auto insurance rates from USAA are generally less expensive than State Farm. Keep in mind, though, that you must be a USAA member to get USAA auto insurance. To become a USAA member, you or an immediate family member must be active-duty or retired military personnel. You can make your rates even more affordable if you qualify for car insurance discounts.
Our rate data shows good drivers pay about $509 per year for minimum coverage with USAA and $684 per year for minimum coverage with State Farm. USAA also offers cheaper full coverage insurance with annual average rates of $1,476 compared to State Farm’s annual average rates of $1,680. Below, we’ve compared both companies for drivers in a few different situations. Note that USAA is cheaper for 20-year-olds and drivers with speeding tickets or poor credit but State Farm is cheaper for drivers with accidents and DUIs.
| Driver Profile | USAA
Average Annual Full Coverage Cost | State Farm
Average Annual Full Coverage Cost |
|---|---|---|
| 30-year-old male | $1,476 | $1,680 |
| 20-year-old male | $2,832 | $3,748 |
| 30-year-old male with a speeding ticket | $1,808 | $1,889 |
| 30-year-old male with an at-fault accident | $2,078 | $1,997 |
| 30-year-old male with a DUI | $2,810 | $2,152 |
| 30-year-old male with poor credit | $2,695 | $4,490 |
*California, Hawaii, Massachusetts, and Michigan don’t use credit scores as a factor in determining car insurance rates
State Farm Vs. USAA Discounts
Discounts can make a huge difference in what you pay. Let’s take a closer look at insurance discounts available from USAA and State Farm:
| USAA | State Farm | |
|---|---|---|
| Multiple Vehicle | ✓ | ✓ |
| Multiple Policy | ✓ | ✓ |
| Good Student | ✓ | ✓ |
| Safe Driver | ✓ | ✓ |
| Defensive Driving | ✓ | ✓ |
| Driver Training | ✓ | ✓ |
| Vehicle Safety | ✓ | |
| Anti-Theft | ✓ | |
| Passive Restraints | ✓ | |
| Accident-Free | ✓ | |
| Student Away At School | ✓ | |
| New Car | ✓ | |
| Annual Mileage | ✓ | |
| Vehicle Storage | ✓ | |
| Military Installation | ✓ | |
| Family Discount | ✓ | |
| Length of Membership Savings | ✓ |
Part of State Farm’s discount for safe drivers, Drive Safe and Save™ is a usage-based program that monitors your driving behavior using OnStar or an app on your smartphone. By assessing acceleration speed, how hard you brake, and other driving habits, you could be eligible for insurance discounts of up to 30 percent. This program is available in every state except for California, Massachusetts, and Rhode Island.
USAA has a comparable usage-based driving program called SafePilot™. Just by enrolling, you save up to 10 percent, and once you start driving, safe driving habits could qualify you for up to 30 percent off when you renew your policy. This program is only available everywhere except California, Delaware, and New Jersey.
Both providers offer a discount for bundling multiple policies together, such as auto, renters, and homeowners insurance or a similar insurance product. That means that if you already have a policy with one of these providers, it is probably cheaper to also get an auto insurance policy through that same company.
USAA Vs State Farm: Ratings And Reviews
When you ask yourself who is better between USAA and State Farm, it can be valuable to see what industry experts and customers are saying about the auto insurance companies. Luckily, both have largely positive ratings.
| USAA | State Farm | |
|---|---|---|
| Better Business Bureau (BBB) | Not rated | A |
| AM Best financial strength rating | A++ (Superior) | A++ (Superior) |
In J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study℠, USAA earned one of the highest scores of any auto insurance company with 900 out of a possible 1,000 points, whereas State Farm came in just behind with 891.
In the 2023 Insurance Shopping Study, USAA scored 874 out of 1,000 points while State Farm scored slightly higher with 877 points. The two companies had the two highest scores, which shows they both offer great claims experiences. In both J.D. Power studies, USAA is taken out of the formal ranking since it is only available for military members but the ratings are still given.
If you’re shopping for car insurance with claims processing speed and satisfaction at the top of your list, USAA and State Farm both offer great experiences.
Both companies have received mostly positive reviews from customers, with some negative ones as well. Positive reviews for USAA praise the excellent customer experience and claim processes, while negative comments cite coverage discrepancies. State Farm’s glowing reviews mention peace of mind and quality service, while negative ones complain of poor communication.
USAA Vs State Farm: Our Take
Based on our research of USAA vs. State Farm, both insurers are excellent choices for car insurance. USAA and State Farm both offer full-coverage insurance options and a variety of discount offers. State Farm is available to all drivers, while USAA is only available to military members and their immediate family. However, USAA boasts slightly higher customer satisfaction scores.
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Other Top Recommendations For Car Insurance
When you’re shopping for coverage, it’s smart to do your research and get car insurance quotes from multiple providers to be sure that you’re getting the best rates for your vehicle. After you’ve checked out USAA and State Farm, take a look at the other car insurance companies that round out our top four choices: Geico and Progressive.
After doing our homework on the nation’s best auto insurance providers, we named Geico the Best Overall and Progressive the Best for Usage-Based Insurance. Both companies have good ratings from the BBB and positive reviews from customers.
Geico: Best for Basic Coverage
With Geico, you can get low rates and specialty coverage like mechanical breakdown insurance and roadside assistance. In our research, we found Geico to offer some of the lowest insurance rates overall, particularly for policyholders who are able to take advantage of discount offers such as:
- Good student discount
- Good driver discount
- Defensive driver discount
- Discounts for airbags, anti-lock brakes, and anti-theft devices
- Multiple policy discount
- Multiple vehicle discount
- Military discount
- Federal employee discount
Many Geico reviews praise the company for its excellent insurance claims service and low-cost policies.
Compare: Geico vs. Progressive
Progressive: Best For Usage-Based Insurance
Progressive offers great technology features, including the Name Your Price® tool and Snapshot® mobile app. It’s a good choice for high-risk drivers because it offers good rates for those with a DUI or accident on their driving record. Customers can save with Progressive’s many insurance discount offers such as:
- Multi-policy
- Multi-car
- Continuous insurance
- Teen driver
- Good student
- Distant student discount
- Homeowners
- Online quote
- Sign online
- Paperless billing
- Pay in full
- Automatic payment
In addition to offering full coverage auto insurance, Progressive also offers specialty policies that insure custom parts and equipment value. You can read more in our in-depth Progressive insurance review.
USAA Vs. State Farm: FAQ
Below are a few frequently asked questions about USAA and State Farm:
Is USAA really the cheapest insurance?
USAA is one of the cheapest major insurance providers according to our rate data. However, rates vary drastically depending on your situation, so it’s best to compare multiple quotes to find the cheapest option for you.
What insurance is better than USAA?
USAA offers great insurance coverage, but our team ranked State Farm, Travelers, and Liberty Mutual ahead of USAA. Our ranking considers things like reliability, availability, coverage, cost, customer service, and technology.
Is USAA insurance less expensive than State Farm?
Our rate analysis shows USAA is less expensive than State Farm for good drivers on average. It’s also cheaper for 20-year-olds and drivers with speeding tickets or poor credit, but State Farm is cheaper for drivers with accidents and DUIs.
How good is State Farm at paying claims?
State Farm has a superior financial strength rating of A++ from AM Best, indicating that it has the financial stability to pay out its claims.
How We Rate Auto Insurers
Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:
- Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
- Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
- Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
- Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
