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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Michael Leotta

Insurance Operations Specialist

Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...

Insurance Operations Specialist

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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A Concise Overview

  • 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
SummaryState Farm Auto Insurance StatsUSAA Auto Insurance Stats
Year Founded19221922
HeadquartersOne State Farm Plaza Bloomington, IL 617109800 Fredericksburg Road San Antonio, TX 78288
Available in how many states?All StatesAll States
Direct Premiums$41.1 Billion$15.2 Billion
Market Share16%6%

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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 SummaryState Farm Monthly Auto Insurance RatesUSAA 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

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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 SummaryState Farm Monthly Auto Insurance RatesUSAA Monthly Auto Insurance Rates
Good Credit (670-739)$181$152
Fair Credit Score (580-669)$238$185
Poor Credit Score (300-579)$413$308

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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 StatusState Farm Monthly Auto Insurance RatesUSAA 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

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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 CoveragesUSAA Auto Insurance Coverages
Collision CoverageCollision Coverage
Comprehensive CoverageComprehensive Coverage
Liability CoverageLiability Coverage
Car Rental and Travel Expenses CoverageUninsured & Underinsured Motorist Coverage
Uninsured Motorist/Underinsured Motorist CoverageFull Coverage
Medical Payments CoverageRoadside Assistance
Emergency Roadside AssistancePersonal Injury Protection
Rideshare Driver CoverageRental Car Reimbursement

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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 ListState Farm Discount Values
Accident Free Discount15%
Anti-lock Brake Discount20%
Anti-Theft Device Discount15%
Claims Free Renewal DiscountVaries
Daytime Running Lights DiscountVaries
Defensive Driver Discount5%
Driving Habits Discount30%
Driving training discountVaries
Good Credit Discount80%
Good Driver Discount25%
Good Student Discount25%
Home Owner DiscountVaries
Low Mileage Discount10%
Loyalty DiscountVaries
Mature driver discountVaries
Military DiscountVaries
Multiple Policy Discount17%
Multiple Vehicle Discount20%
New Car Discount40%
Passive Restraint Discount40%
Senior Adult DiscountVaries
Student Away at School DiscountVaries
teenSMART Discount15%
Travelink DiscountVaries

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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 NameUSAA Discount Values
Accident ForgivenessVaries
Anti-lock Brake DiscountVaries
Anti-Theft Device Discount20%
Daytime Running Lights DiscountVaries
Defensive Driver DiscountVaries
Driving training discountVaries
Family Discount10%
Good Driver Discount10%
Good Student DiscountVaries
Low Mileage DiscountVaries
Loyalty DiscountVaries
Military Discount15%
Multiple Policy Discount9%
Multiple Vehicle Discount13%
New Car DiscountVaries
Passive Restraint Discount15%
Student Away at School Discount20%
teenSMART DiscountVaries
Vehicle Storage Discount60%

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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 ProsState Farm ConsUSAA ProsUSAA Cons
Easy to file a claimCost is higher for customers with poor creditCheapest auto insurance ratesInsurance policies are only available to military members and their immediate families
Cheap auto insurance ratesHas fewer discounts than most competitorsAwesome military discountsFewer auto insurance coverage options than other competitors
Good financial strength ratings
Excellent customer review ratings

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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
AgenciesState Farm RatingsUSAA Ratings
AM BestA++A++
Better Business Bureau (BBB)A+A+
NAIC Complaint Index0.981.8
J.D. Power - Power Circle RatingsBetter Than MostAmong The Best
Consumer Reports8995

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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.

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