State Farm and USAA are two well-known car insurance companies with large market shares in the car insurance industry.1 Both companies also offer insurance products and other financial services across the U.S.
It’s always a good idea to compare multiple companies before buying a car insurance policy because insurers calculate rates differently based on your driving record, gender, ZIP code, marital status, and age.
Here’s a look at how State Farm’s and USAA’s customer service, coverages, and rates compare to help you choose the best car insurance company for you.
State Farm and USAA offer similar discounts, insurance products, and competitive rates, but their availability may help you choose the best one for you.
State Farm sells car insurance policies in every state except Rhode Island and Massachusetts. USAA is available nationwide, but only current military members, veterans, and family members can buy a USAA car insurance policy.
If you’re eligible to buy a policy with either company, price and reputation can help guide your decision. USAA has more affordable average rates compared to State Farm, and it earned higher ratings in J.D. Power’s 2023 U.S. Auto Insurance Study and 2023 U.S. Auto Claims Satisfaction Study.2 3
State Farm is still a solid option, with some of the lowest prices among all insurance companies and strong customer service and claims-handling ratings in every region of the country. Both insurers also have the highest financial strength rating from AM Best, meaning they each have the financial stability to pay out claims when necessary.
State Farm is the largest auto insurance company in the U.S by market share.1 It has earned a reputation for excellent customer service and a smooth claims process.
USAA doesn’t have as much of a market share as State Farm, but it routinely outperforms other insurers in customer service and claims satisfaction.
State Farm and USAA both offer telematics car insurance programs, in which an app tracks and collects your driving information. Driving carefully and defensively will generally help lower your premiums.
With State Farm’s Drive Safe & Save program, you get an initial discount of 5% when you register and an additional discount of up to 30% as your policy renews. You save money when you practice safe driving habits, like avoiding quick acceleration and speeding. Drive Safe & Save is available in all states except California, Massachusetts, and Rhode Island.
USAA’s SafePilot is similar: You get an instant 10% discount when you enroll and can save up to 30% each time you renew your policy. Your discount amount depends on your driving performance, so safe driving habits help you save more. SafePilot is available in all states except California, Delaware, and New Jersey, and some restrictions apply in Massachusetts.
Compared to State Farm, USAA offers cheaper car insurance coverage for most driver profiles. But your specific premium will depend on personal characteristics like where you live, your driving record, credit history, age, and more.
Drivers with a clean record pay the lowest rates for car insurance. Between the two insurers, USAA offers lower average premiums for people with a clean driving history.
People with a speeding ticket on their record often pay more for car insurance because insurance companies consider them at a higher risk of filing a claim.
Compared to State Farm, USAA has lower average rates for drivers with a speeding ticket.
Teens pay more for car insurance because they lack driving experience and are at a higher risk of getting into a car accident.4 USAA’s car insurance rates are often lower for teen drivers compared to State Farm, helping them save money on coverage.
Most states allow insurance companies to use your credit history when calculating rates, and drivers with bad credit pay more than drivers with good credit scores.5 Again, USAA has cheaper average rates than State Farm for drivers with poor credit.
The risk of injury or death in a car accident increases as you get older, so senior drivers may start paying more for car insurance around age 70.6 USAA’s average car insurance rates are slightly cheaper for older drivers.
State Farm and USAA offer basic coverage types, including liability coverage, uninsured/underinsured motorist coverage, personal injury protection, collision insurance, and comprehensive insurance.
Both companies also offer several add-ons that are less common. One key difference is that USAA offers accident forgiveness and pay-per-mile insurance, while State Farm doesn’t.
Neither car insurance company offers traditional gap coverage, but State Farm has Payoff Protector for its auto loans, which acts like gap insurance, and USAA offers car replacement assistance.
Here’s a look at State Farm and USAA auto insurance coverages.
Car insurance discounts can help lower your premiums if you qualify for them. If you’re eligible for USAA car insurance, it has a few more discounts than State Farm, which gives you more opportunities to save on your coverage.
The following information provides more insight if you still have questions about how State Farm’s and USAA’s coverages and rates compare.
USAA typically offers lower car insurance rates than State Farm and earns better ratings when it comes to the claims process and customer satisfaction. But USAA auto insurance is only available to members of the military community and their family members.
State Farm is also a good choice because the company offers affordable rates, several discounts and add-ons, and strong customer service.
The key difference is that USAA car insurance policies are only available to current and former military members and their families, while State Farm doesn’t have eligibility requirements. USAA also tends to perform well in customer satisfaction studies, offers lower rates for most driver profiles, provides more advertised discounts, and sells more add-on coverages.
USAA car insurance policies are only available to current and former service members and their families.
State Farm and USAA offer property insurance, business insurance, investing products, and banking services like checking accounts, credit cards, and consumer and business loans.
)
)
Over 3 years of experience producing content on insurance and personal finance.
Key architect of Insurify's quality score.
Featured in
){kind=small}
){kind=small}
)
7+ years experience in data analysis
Ph.D. in Computational Biology
)
)