USAA and State Farm are two of the best options for auto insurance nationwide, but which is right for you? In this review, we compare USAA vs State Farm coverage, cost, discounts, and more to help you decide where you should purchase your next car insurance policy.
In our review of the best car insurance companies in the United States, USAA and State Farm both made the top four. We recommend getting a quote from each insurer so you can compare your own costs and coverage. Besides the car insurance company you choose, factors like your age, vehicle make and model, and driving history can affect your quote.
Use the tool above or simply call our team at (844) 246-8209 to start comparing personalized car insurance quotes.
USAA And State Farm Highlights
Both USAA and State Farm are national car insurance providers that offer great service and coverage. While USAA car insurance is the best car insurance for veterans, military members, and their families, State Farm auto insurance is a great alternative, especially for teens and student drivers.
Here’s an overview of what we found when we compared USAA vs State Farm.
|Superlative||Best for Military||Best for Students|
|Availability||For military members, available in 50 states||No restrictions, available in 48 states*|
|AM Best Financial Strength Rating||A++||A++|
|J.D. Power Claims Satisfaction||890/1,000||881/1,000|
|Mobile App Google Play Rating||4.6||4.7|
USAA Vs State Farm: Coverage
When it comes to the types of auto insurance you need, you should assess your state’s mandated insurance coverage requirements and your own driving history. This will tell you what basic car insurance coverage you need to drive legally in your state and the types of insurance coverage you might want to consider adding to your plan to protect yourself and your finances.
Some of the standard types of car insurance that you could purchase include:
- Liability insurance: Bodily injury (BI) and property damage (PD) insurance are required in most states to cover the injuries and property damages of other drivers in accidents you cause.
- Collision insurance: This type of protection covers the cost of damages your car sustains in an accident, no matter which party was at fault.
- Comprehensive car insurance: This type of coverage protects your vehicle after it is damaged by hazardous weather conditions (hail, fire, floods, etc.), animals, vandalism, and theft.
- Personal injury protection (PIP): PIP covers your medical expenses and those of your passengers after an accident.
- Medical Payments (MedPay): MedPay covers the cost of medical bills for you and your passengers after an accident, regardless of who was at fault.
- Uninsured/Underinsured Motorist (UM/UIM): UM/UIM policies help pay for repairs to your vehicle if you are in an accident with another driver who does not have insurance or whose insurance does not cover the full cost of your repairs. UM/UIM coverage is mandatory in some states.
Both providers also offer other forms of auto insurance coverage that can be purchased for an additional charge. Some of these add-on options include roadside assistance and rental car reimbursement.
When comparing USAA vs State Farm, both car insurance providers offer a variety of choices for coverage.
|Bodily Injury Liability||✓||✓|
|Property Damage Liability||✓||✓|
|Personal Injury Protection||✓||✓|
|Rental Car Reimbursement||✓||✓|
|Guaranteed Asset Protection (GAP)||✓|
|Car Replacement Assistance (CRA)|
USAA Vs State Farm: Cost And Discounts
The cost of car insurance depends on many factors, such as your location, demographic information, the company you choose to underwrite your policy, and the discounts available to you. The best way to find out how much you will pay for USAA or State Farm is to get auto insurance quotes for both.
Is USAA Cheaper Than State Farm?
Yes, our research shows that car insurance from USAA is generally less expensive than State Farm. Keep in mind, though, that you must be a USAA member to get USAA auto insurance. To become a USAA member you or an immediate family member must be active-duty or retired military personnel. You can make your insurance rates even more affordable if you qualify for discounts.
Let’s take a closer look at insurance discounts, comparing USAA vs State Farm:
|Student Away At School||✓|
|Length of Membership Savings||✓|
Part of State Farm’s discount for safe drivers, Drive Safe and Save™ is a usage-based program that monitors your driving behavior using OnStar or an app on your smartphone. By assessing acceleration speed, how hard you brake, and other driving habits, you could be eligible for insurance discounts. The data collected by this program can never work against you to increase your car insurance rates – it can only save you money. This program is available in every state except for California, Massachusetts, and Rhode Island.
USAA has a comparable usage-based driving program called SafePilotTM. Just by enrolling, you save 5 percent, and once you start driving, safe driving habits could qualify you for up to 20 percent off when you renew your policy. This program is only available for drivers in Arizona, Ohio, Texas, and Virginia.
Both providers offer a discount for bundling multiple policies together, such as auto, renters, and homeowners insurance or a similar insurance product. That means that if you already have a policy with one of these providers, it is probably cheapest to also get an auto insurance policy through that same company.
USAA Vs State Farm: Ratings And Reviews
When you ask yourself who is better between USAA vs State Farm, it can be valuable to see what industry experts and customers are saying about the auto insurance companies. Luckily, both have largely positive ratings.
|Better Business Bureau (BBB)||A-||A+|
|AM Best||A++ (Superior)||A++ (Superior)|
In J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study℠, USAA earned the highest score of any auto insurance company with 890 out of a possible 1,000 points, whereas State Farm earned 881 in the same study. In the 2020 Insurance Shopping Study, USAA scored 900 out of 1,000 points while State Farm scored 860. USAA is taken out of the rank since it is only available for military members but the ratings are still given. If you’re shopping for car insurance with claims processing speed and satisfaction at the top of your list, USAA and State Farm offer a similar experience, but USAA is slightly ahead of State Farm.
Both companies have received positive reviews from customers. Shown below is a sampling of reviews for USAA and State Farm. Although online reviews are mostly positive, we have included a few negative reviews to better understand the issues that dissatisfied customers have faced.
USAA Customer Reviews
“I’ve been using USAA as my insurance for over 25 years and any time I’ve had to file a claim they have always been on par with all my needs. Never have I had any issues with their coverage or their customer service.”
-Jay H. via BBB
“Today USAA has denied my [$14,000] truck repairs from vandalism. They said it was [negligent] servicing. I am a Purple Heart disabled veteran and have been a 30-year member of USAA… They give false insured security and their policy reads differently than [your] policy and it gives you false hopes.”
State Farm Customer Reviews
“I have been with this [State Farm] agent now for more than 20 years… I would refer anyone to them in a heartbeat. They have always been good for peace of mind, and I have never worried about them not being there for me or my family.”
-Mickey via BBB
“[I] was not properly notified that my insurance was going to get [cancelled with State Farm]. I called and asked how my cancellation notice was sent, and I was told that it was mailed out. I never [received] a letter stating my insurance was canceled. Now I am in the process of losing my license. I drive [a] truck for a living, and this will be a huge impact on my income.”
Our Take On USAA Vs State Farm
Based on our research of USAA vs State Farm, both insurers are excellent choices for car insurance. USAA and State Farm both offer full-coverage insurance options and a variety of discount offers. State Farm is available to all drivers, while USAA is only available to military members and their immediate family. However, USAA boasts slightly higher customer satisfaction scores.
USAA came out slightly above State Farm but is not available for everyone. If you fall outside of the eligibility group, State Farm could be a great auto insurance provider for you, especially if you can take advantage of the many discounts for teen and student drivers.
Learn more about the providers in our complete USAA insurance review and State Farm insurance review. When you’re ready to start comparing free car insurance quotes, call our team at (844) 246-8209 or fill out the form below.
Other Top Recommendations For Car Insurance
When you’re shopping for car insurance, it’s smart to do your research and get quotes from multiple providers to be sure that you’re getting the best rates for your vehicle. After you’ve checked out USAA and State Farm, take a look at the other car insurance companies that round out our top four choices: Geico and Progressive.
After doing our homework on the nation’s best auto insurance providers, we named Geico the Best Overall and Progressive the Best for High-Risk Drivers. Both companies have A+ ratings from the BBB and positive reviews from customers.
Geico: Best Overall Provider
With Geico, you can get low rates and specialty coverage like mechanical breakdown insurance and roadside assistance. In our research, we found Geico to offer some of the lowest insurance rates overall, particularly for customers who are able to take advantage of discount offers such as:
- Good student discount
- Good driver discount
- Defensive driver discount
- Discounts for airbags, anti-lock brakes, and anti-theft devices
- Multiple policy discount
- Multiple vehicle discount
- Military discount
- Federal employee discount
Many Geico reviews praise the company for its excellent insurance claims service and low-cost policies.
Progressive: Best For High-Risk Drivers
Progressive offers great technology features, including the Name Your PriceⓇ tool and Snapshot® mobile app. It’s a good choice for high-risk drivers because it offers good rates for those with a DUI or accident on their driving record. Customers can save with Progressive’s many insurance discount offers such as:
- Continuous insurance
- Teen driver
- Good student
- Distant student discount
- Online quote
- Sign online
- Pay in full
- Automatic payment
In addition to offering full coverage auto insurance, Progressive also offers specialty policies that insure custom parts and equipment value. You can read more in our in-depth Progressive insurance review.
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.