Compare Rates and Coverage (2022)

In general, when it comes to USAA vs. State Farm for auto insurance, drivers can’t really go wrong. The providers earned the two top spots in our 2022 industry-wide insurance study of the best car insurance companies, receiving high marks in every scoring category.  The Home Media reviews team  took […]

In general, when it comes to USAA vs. State Farm for auto insurance, drivers can’t really go wrong. The providers earned the two top spots in our 2022 industry-wide insurance study of the best car insurance companies, receiving high marks in every scoring category. 

The Home Media reviews team  took an in-depth look at each company’s reputation, rates, coverage and customer service to see how USAA and State Farm compare. To help you decide, our team will break down the differences between the two providers.

Comparing USAA and State Farm

When comparing USAA vs. State Farm, we found that both providers have a lot to offer policyholders. In many cases, USAA offers cheaper average rates than State Farm. However, USAA auto insurance is only available to military members, veterans and their families, meaning those low rates aren’t accessible to everyone. State Farm, on the other hand, is open to anyone in every state except Massachusetts and Rhode Island and claims a more extensive network of insurance offices and local agents.

Compare USAA vs. State Farm

Our team uses a standardized methodology to score providers based on more than 70 factors. You can compare the scores of USAA vs. State Farm in the table below.

USAA vs. State Farm: Company Overviews

About USAA

The name USAA stands for United Services Automobile Association. The provider offers its insurance products and other services exclusively to active, reserved and retired military and their family members.

As an insurance provider, USAA consistently scores near the top of insurance studies such as those from J.D. Power. The insurer also tends to offer some of the cheapest rates for a wide variety of driver profiles.

About State Farm

State Farm is the largest insurance provider in the country, owning 15.93% of the total auto insurance market in 2021 according to data from the National Association of Insurance Commissioners (NAIC). The company wrote more than $41.6 billion in premiums in 2021.

As a provider, State Farm offers affordable rates for most drivers nationwide and a strong selection of discounts. The company proudly claims to have more than 19,000 local insurance agents around the country, meaning people in most places have access to in-person service.

USAA vs. State Farm Coverage

USAA and State Farm offer the same standard coverage options you’ll find everywhere, including liability, property and medical coverages. 

The two providers also offer a similar selection of additional coverage options. However, USAA offers a few coverages that State Farm does not.

For example, USAA offers car replacement assistance coverage, which pays an additional 20% over the cash value of your vehicle in a total loss. USAA also offers guaranteed asset protection coverage, also called gap insurance. State Farm does not provide either of these options. Yet while USAA offers glass coverage as an add-on, State Farm includes glass claims in its comprehensive coverage policies.

USAA vs. State Farm Pricing

*Note: All estimates are for full-coverage insurance and based on the standardized profile of a 35-year-old driver with a clean driving record and good credit history unless stated otherwise.

Icons showing the factors that influence the cost of car insurance

When it comes to the cost of coverage, USAA tends to offer cheaper car insurance rates than State Farm in many — but not all — cases. Drivers with a conviction for driving under the influence (DUI) or a recent speeding ticket on their record may be able to get cheaper premiums through State Farm.

Car Insurance Cost Factors

As you can see from the table above, car insurance rates can vary greatly depending on a few variables. The following factors tend to have the most significant impact on the cost of your auto insurance policy:

  • Age: Young drivers and especially teen drivers tend to pay much higher rates than other age groups.
  • Coverage: Both the types of insurance you include in your policy and the coverage limits you set affect your rates. As you’d expect, the more coverage you have, the more you’ll have to pay for it.
  • Deductible: You can set your deductible as low as zero dollars in some cases if you want to avoid having out-of-pocket expenses after a loss. However, the lower your deductible is, the higher your premium is likely to be.
  • Credit score: In states where it’s legal to do so, insurers typically charge substantially higher rates to drivers with lower credit scores.
  • Location: The state where you live as well as the presence of local risk factors in your area contribute to the cost of your premiums.
  • Driving history: People with a clean driving record typically get access to the lowest rates. Drivers with at-fault accidents or traffic violations on their records tend to pay more.
  • Marital status: Insurers often charge higher rates to single drivers than to those who are married.
  • Gender on license: People whose listed gender on their license is female often get lower rates than those listed as male.

USAA vs. State Farm: Discounts

Both USAA and State Farm offer a good selection of auto insurance discounts. Both providers offer typical discounts such as one for bundling your homeowners insurance, life insurance, renters insurance or other insurance products with your auto coverage.

USAA offers a few discounts specific to military personnel that State Farm doesn’t, while State Farm offers a few driver-safety related discounts that USAA doesn’t.

Car insurance discounts can sometimes vary by location. Ask an insurance agent about all of the discount options available to you before signing up for your policy.

USAA vs. State Farm: Usage-based Insurance

Both USAA and State Farm have usage-based insurance (UBI) programs that offer discounts for safe drivers. UBI programs collect vehicle telematics data from your cell phone or other technology to monitor driving habits like speeding, acceleration and hard braking. Safe driving habits can earn users a discount on their insurance.

SafePilot from USAA is available in all states except California, Delaware, Indiana, Massachusetts, New Jersey, New York, North Carolina, Vermont and Wisconsin

Drive Safe & Save from State Farm is more widely available than SafePilot. Drivers in all states but California, Massachusetts and Rhode Island can participate in the program. Availability may be limited for drivers in North Carolina.

USAA vs. State Farm Customer Experience

In our 2022 insurance study, both providers earned some of the highest scores for customer satisfaction. These scores were based on a combination of industry ratings and customer review scores.

USAA vs. State Farm: Industry Ratings

In the J.D. Power Insurance Shopping Study, both USAA and State Farm scored above the industry average. In the 2022 study, USAA received 875 out of a possible 1,000 points, while State Farm scored an 885. Both insurers performed well in the J.D. Power 2022 U.S. Auto Claims Satisfaction Survey℠ as well, with USAA receiving the highest score of 909 and State Farm placing above average with 892 points.

USAA vs. State Farm: Customer Complaints

According to 2021 NAIC data, USAA has a complaint index of 1.06 for private passenger insurance. This is slightly above the national average for insurers of its size, which is normalized to 1.0. State Farm, on the other hand, has a complaint index of 0.67, which means it received fewer complaints than the national average.

USAA vs. State Farm: Customer Reviews

USAA and State Farm both have objectively low scores from customers on the BBB website. However, this is to be expected, as customers typically only go to the BBB when they want to report an issue or frustration. The two providers’ scores are relatively normal for the industry.

In the table below, you’ll find customer ratings for USAA and State Farm both as companies and for their mobile apps, which play an increasingly important role in the consumer experience for auto insurance.

USAA vs. State Farm: Conclusion

When comparing USAA vs. State Farm, our team found both to be excellent providers. Drivers can find affordable rates and highly rated customer service with either one.

Outside of a few specific optional coverages, the primary difference between the two providers is accessibility. USAA insurance is only available to military members and their families, meaning most people won’t be able to get coverage from the company.

USAA vs. State Farm: Recommended Competitors

We highly recommend both USAA and State Farm. However, while both tend to offer low rates, they may not offer the cheapest car insurance for you. 

It’s best to get insurance quotes from several providers so you can compare car insurance options. The following providers also landed near the top of our 2022 list of the best car insurance companies.

Travelers: Most Coverage Options

For drivers who want as much selection as possible when building their car insurance policy, Travelers is a great place to start. In our insurance review, our team found that the provider offers one of the largest sets of coverage options in the country. Most drivers should be able to find the coverage they want with Travelers.

Keep reading: Travelers insurance review

Geico: Affordable for Most Drivers

Affordability is typically top of mind for most car insurance shoppers, and Geico is consistently among the cheapest options for many driver profiles. With a large selection of discounts to help bring those rates down even further, it’s a good idea to get a quote from Geico while shopping for car insurance.

Keep reading: Geico insurance review

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

  • Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
  • Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
  • Reputation (15% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
  • Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
  • Customer Experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

 

*Data accurate at time of publication.

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