State Farm vs. USAA Auto Insurance: Which should you buy in 2024?
Our State Farm vs. USAA auto insurance review compares auto insurance rates, coverages, discounts, and third-party ratings. USAA auto insurance rates are some of the cheapest, but State Farm vs. USAA car insurance quotes can vary by many different factors. Use our quote tool below to compare multiple companies and secure affordable rates.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Nov 6, 2023
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- State Farm has the highest market share in the auto insurance industry.
- USAA auto insurance policies are cheaper than State Farm policies.
- USAA is only available to veterans and their immediate families.
- J.D. Power rates USAA as one of the best auto insurance companies in the United States.
If you’re looking for a reliable State Farm vs. USAA auto insurance review, you’ve come to the right place. Although State Farm insurance has a much more significant market share than USAA, USAA auto insurance is rated as one of the United States’ best car insurance companies.
However, you’re likely here to see how State Farm vs. USAA auto insurance rates compare. Continue reading our guide to compare rates, auto insurance coverage, discounts, and third-party ratings.
If you want to compare auto insurance companies outside of our State Farm vs. USAA auto insurance guide, enter your ZIP code in the free online quote tool above.
State Farm vs. USAA Auto Insurance: Which company is the cheapest?
Are you searching for cheap auto insurance rates? The next few subsections explore State vs. USAA car insurance rates by driving record, credit score, age, and gender.
Let’s look at how State Farm and USAA match up in a head-to-head comparison before we go into auto insurance rates.
State Farm vs. USAA Summary
| Summary | State Farm Auto Insurance Stats | USAA Auto Insurance Stats |
|---|---|---|
| Year Founded | 1922 | 1922 |
| Headquarters | One State Farm Plaza Bloomington, IL 61710 | 9800 Fredericksburg Road San Antonio, TX 78288 |
| Available in how many states? | All States | All States |
| Direct Premiums | $41.1 Billion | $15.2 Billion |
| Market Share | 16% | 6% |
Both companies are available in all states. Coincidentally, State Farm and USAA started businesses within the same year. However, State Farm has a larger market share and sells more policies.
Read our State Farm auto insurance review to get more detailed information about State Farm and other factors that determine auto insurance cost.
Which is cheapest by driving record?
Your driving record is one of the most significant factors when determining your auto insurance rate. How do State Farm and USAA respond to driving records?
Let’s review what auto insurance is like at these two companies based on driving records.
Average Monthly State Farm vs. USAA Auto Insurance Rates by Driving Records
| Driving Record Summary | State Farm Monthly Auto Insurance Rates | USAA Monthly Auto Insurance Rates |
|---|---|---|
| Clean Driving Record | $235 | $161 |
| With One Speeding Violation | $266 | $183 |
| With One Accident | $283 | $210 |
| With One DUI | $303 | $292 |
State Farm car insurance rates are more expensive. If you want to save money, maintain a clean driving record and the cheapest rates will be available to you.
Which is cheapest by credit score?
Companies will determine your auto insurance rates by credit score. Customers with good credit scores receive cheaper rates because their credit score correlates to lower risks of filing claims.
However, customers with poor credit correlate to higher risks of filing claims. Therefore, a person with poor credit could pay more for car insurance.
Do State Farm and USAA follow this trend? Let’s examine how both companies respond to credit score-based auto insurance.
Average Monthly State Farm vs. USAA Auto Insurance Rates by Credit Scores
| Credit Score Summary | State Farm Monthly Auto Insurance Rates | USAA Monthly Auto Insurance Rates |
|---|---|---|
| Good Credit (670-739) | $181 | $152 |
| Fair Credit Score (580-669) | $238 | $185 |
| Poor Credit Score (300-579) | $413 | $308 |
USAA is the cheaper company, but customers with poor credit pay over $100 more for auto insurance at both companies.
Which is cheapest by age and gender?
Have you ever wondered why your auto insurance nearly skyrocketed when you added your teen or young adult child to your policy? Age is one of the major players when issuing car insurance rates.
Younger drivers tend to be less experienced, so auto insurance companies push up the rates to offset the risk of filing claims. Even gender is a factor.
Why? Statistically, male drivers take more risks than female drivers. Therefore, car insurance costs are higher when you insure male drivers.
What’s State Farm’s and USAA’s response to auto insurance influenced by age and gender? Let’s see how these factors affect State Farm and USAA insurance below.
Average Monthly State Farm vs. USAA Auto Insurance Rates by Age, Gender, and Marital Status
| Age, Gender, and Marital Status | State Farm Monthly Auto Insurance Rates | USAA Monthly Auto Insurance Rates |
|---|---|---|
| Single 17-year-old female | $496 | $401 |
| Single 17-year-old male | $610 | $449 |
| Single 25-year-old female | $195 | $166 |
| Single 25-year-old male | $213 | $177 |
| Married 35-year-old female | $173 | $129 |
| Married 35-year-old male | $173 | $128 |
| Married 60-year-old female | $156 | $121 |
| Married 60-year-old male | $156 | $121 |
As expected, teen auto insurance rates are the most expensive. Overall, USAA’s prices are much less than State Farm’s rates.
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State Farm vs. USAA Auto Insurance Coverages
You’ve seen what the auto insurance rates are like. Let’s look at some auto insurance coverages you can add to your policy.
Comparing State Farm and USAA Auto Insurance Coverages
| State Farm Auto Insurance Coverages | USAA Auto Insurance Coverages |
|---|---|
| Collision Coverage | Collision Coverage |
| Comprehensive Coverage | Comprehensive Coverage |
| Liability Coverage | Liability Coverage |
| Car Rental and Travel Expenses Coverage | Uninsured & Underinsured Motorist Coverage |
| Uninsured Motorist/Underinsured Motorist Coverage | Full Coverage |
| Medical Payments Coverage | Roadside Assistance |
| Emergency Roadside Assistance | Personal Injury Protection |
| Rideshare Driver Coverage | Rental Car Reimbursement |
State Farm and USAA have the same amount of coverages. The more coverage you have, the higher your monthly premiums will cost.
Coverage options are updated every few months, so you may be able to get more before you renew your policy.
State Farm vs. USAA Auto Insurance: Who has more discounts?
Discounts are another way you can save money on auto insurance rates. The first six months will feel expensive. The longer you keep your policy, the more you can save on discounts.
Let’s explore what discounts are available in the next two subsections. State Farm and USAA discounts are the edges you need to slash car insurance rates to a cost-efficient bargain.
State Farm Auto Insurance Discounts
We’ll start with discounts from State Farm. How much do you think you can save? Examine the discount values below.
State Farm Discounts
| State Farm Auto Insurance Discount List | State Farm Discount Values |
|---|---|
| Accident Free Discount | 15% |
| Anti-lock Brake Discount | 20% |
| Anti-Theft Device Discount | 15% |
| Claims Free Renewal Discount | Varies |
| Daytime Running Lights Discount | Varies |
| Defensive Driver Discount | 5% |
| Driving Habits Discount | 30% |
| Driving training discount | Varies |
| Good Credit Discount | 80% |
| Good Driver Discount | 25% |
| Good Student Discount | 25% |
| Home Owner Discount | Varies |
| Low Mileage Discount | 10% |
| Loyalty Discount | Varies |
| Mature driver discount | Varies |
| Military Discount | Varies |
| Multiple Policy Discount | 17% |
| Multiple Vehicle Discount | 20% |
| New Car Discount | 40% |
| Passive Restraint Discount | 40% |
| Senior Adult Discount | Varies |
| Student Away at School Discount | Varies |
| teenSMART Discount | 15% |
| Travelink Discount | Varies |
Imagine if you qualify for more than one discount – you can save hundreds per year under the right conditions and several discounts.
USAA Car Insurance Discounts
What about USAA? How much can you save using USAA discounts? Let’s compare USAA discounts and see.
USAA Discounts
| Auto Insurance Discount Name | USAA Discount Values |
|---|---|
| Accident Forgiveness | Varies |
| Anti-lock Brake Discount | Varies |
| Anti-Theft Device Discount | 20% |
| Daytime Running Lights Discount | Varies |
| Defensive Driver Discount | Varies |
| Driving training discount | Varies |
| Family Discount | 10% |
| Good Driver Discount | 10% |
| Good Student Discount | Varies |
| Low Mileage Discount | Varies |
| Loyalty Discount | Varies |
| Military Discount | 15% |
| Multiple Policy Discount | 9% |
| Multiple Vehicle Discount | 13% |
| New Car Discount | Varies |
| Passive Restraint Discount | 15% |
| Student Away at School Discount | 20% |
| teenSMART Discount | Varies |
| Vehicle Storage Discount | 60% |
USAA doesn’t have as many discount options, but its cheap rates can be lowered even more with discounts. Take advantage of the discounts you’re eligible for and save more per month.
If you ever want to know how your discounts apply to your policy, use your State Farm login or USAA login to see your policy details. For more information, contact State Farm or USAA customer service to see if you qualify for more discounts.
State Farm vs. USAA Auto Insurance Reviews
Finally, let’s tackle State Farm vs. USAA car insurance reviews by exploring pros, cons, and financial strength ratings. You can use these reviews as a springboard toward the auto insurance policy that meets your needs.
Pros and Cons
To make this guide more reliable, we researched the advantages and disadvantages of State Farm and USAA. Let’s compare both companies below.
Comparing Pros and Cons of State Farm vs. USAA Auto Insurance
| State Farm Pros | State Farm Cons | USAA Pros | USAA Cons |
|---|---|---|---|
| Easy to file a claim | Cost is higher for customers with poor credit | Cheapest auto insurance rates | Insurance policies are only available to military members and their immediate families |
| Cheap auto insurance rates | Has fewer discounts than most competitors | Awesome military discounts | Fewer auto insurance coverage options than other competitors |
| Good financial strength ratings | |||
| Excellent customer review ratings |
State Farm has more advantages, while USAA has an equal number of pros and cons.
Financial Strength and Credit Ratings
Did you know auto insurance companies are judged by their financial management skills and customer satisfaction reviews?
Financial strength and credit rating agencies grade car insurance providers each year and summarize company performance in one score. We found each of those scores and compiled them into the data you see below.
State Farm vs. USAA Financial Strength and Credit Ratings
| Agencies | State Farm Ratings | USAA Ratings |
|---|---|---|
| AM Best | A++ | A++ |
| Better Business Bureau (BBB) | A+ | A+ |
| Moody's | Aa1 | Aa1 |
| S&P | AA | AA+ |
| NAIC Complaint Index | 0.98 | 1.8 |
| J.D. Power - Power Circle Ratings | Better Than Most | Among The Best |
| Consumer Reports | 89 | 95 |
State Farm and USAA have the same ratings until you get to S&P. USAA’s ratings outperform State Farm under S&P, J.D. Power, and Consumer Reports. However, State Farm has a better NAIC complaint index.
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State Farm vs. USAA Car Insurance: The Bottom Line
USAA appears to be a better company, but it’s not available to everyone. Only veterans and their immediate families can access USAA insurance policies.
Therefore, State Farm would be a good alternative if you want to save money on auto insurance. Try comparing other auto insurance companies to see if you can get a reliable policy.
Compare companies outside our State Farm vs. USAA auto insurance review by entering your ZIP code in the free comparison tool.