State Farm vs. USAA

State Farm vs. USAA comparison

When comparing State Farm vs. USAA, there are several important variables to consider. Average rates matter, but financial strength ratings, customer satisfaction, coverage options and discount opportunities may also be important to consider when determining which company works best for you.

State Farm pros and cons

USAA pros and cons

Is State Farm cheaper than USAA?

When comparing State Farm vs. USAA, a common concern is usually pricing. For an idea of how much you might pay, consider the average rates for full and minimum coverage from both companies. Typically, State Farm and USAA offer rates that fall below the national average, per data sourced from Quadrant Information Services. However, USAA is often cheaper for those who qualify for coverage.

Nonetheless, it’s crucial to understand that the more cost-effective option varies based on your individual circumstances. Factors such as your driving record, your ZIP code, your coverage needs and the type of vehicle you own play a significant role in determining your premium. The average rates below simply offer a baseline for comparison when getting a quote from State Farm or USAA.

State Farm vs. USAA: discounts

Car insurance companies often offer discounts for eligible drivers. Car insurance discounts can help drivers save on their premiums if they meet certain criteria. While both State Farm and USAA have distinctive discounts, each carrier also offers discounts that are similar.

Discounts available from both carriers

Both State Farm and USAA offer a range of discounts that can provide substantial savings on premiums, appealing to a broad array of customers. These discounts are designed to reward responsible behaviors and circumstances that lower the insurers' risk. Key discounts offered by both companies include:

• Multi-policy discount: Customers who bundle multiple types of insurance policies, such as home and auto, typically enjoy reduced rates on each policy.
• Multi-vehicle discount: Insuring more than one vehicle with the same company can lead to savings on the overall cost of car insurance for policyholders.
• Good student discount: This discount is usually available to full-time students who maintain a "B" average or better, reflecting the correlation found between good academic performance and responsible driving behavior.

State Farm discounts

• Steer Clear: Drivers under the age of 25 with a clean driving record for the past three years may be eligible for this program with State Farm, which could earn you a discount.
• Drive Safe and Save: This is a car insurance telematics program through State Farm that requires enrollment. Your driving is monitored through a smartphone app and, depending on your driving habits, you may receive a discount.
• Good driver discount: New State Farm customers who have maintained a clean driving record for at least three years, with no moving violations or at-fault accidents, may be eligible.

USAA discounts

• SafePilot: USAA’s telematics program also tracks your driving habits with an app and may assign you a personalized discount at your policy renewal.
• Military installation: If you store your vehicle in a garage or storage facility on base, you may receive additional savings.
• Loyal member: If your parents have USAA and you purchase a policy of your own, you might qualify for a loyalty discount through the MyUSAA Legacy Discount program.

State Farm and USAA telematics programs

Both companies offer a usage-based car insurance program that may help you save on premiums when you drive safer. These telematics programs use real-time data from phone apps or in-car devices to evaluate your driving patterns. Below you will find a detailed comparison of both USAA and State Farm’s telematics programs.

State Farm vs. USAA: customer experience comparison

Customer satisfaction and digital tools can also make a difference when comparing potential insurance companies. When it comes to the 2023 J.D. Power Auto Claims Satisfaction study, USAA scored higher than State Farm, but both performed above average. State Farm and USAA also both offer a robust lineup of online tools and features that give customers access to digital policy management. Both carriers offer a mobile app for access to ID cards, bill payment, roadside assistance and claims filing. However, State Farm offers additional features for on-the-go policy management, such as the ability to message an agent through the app or obtain technical assistance.

Customer complaints

Understanding how companies handle customer complaints can be pivotal when selecting an insurance provider. The National Association of Insurance Commissioners (NAIC) complaint index is a crucial metric in this evaluation. This index compares the number of complaints an insurance company receives relative to its size, specifically its market share of premiums. An index score of 1.0 indicates that the insurer receives complaints at the industry average rate; scores above 1.0 suggest a higher-than-average complaint rate, while scores below 1.0 indicate fewer complaints relative to the industry standard. This index helps consumers gauge the quality of service and customer satisfaction at a particular insurer, typically reflecting the company’s efficiency and effectiveness in resolving issues.

State Farm auto insurance customer complaints

USAA auto insurance customer complaints

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze the latest rates in November 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate changes filed by insurance companies that affect our profile. These revised rates are then weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit-based insurance scores: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 25-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.