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Before you weigh State Farm versus USAA, it's important to know that one of these companies doesn't cater to the general public — USAA only provides coverage to qualifying military members and their families.
If you're in USAA's potential customer pool, though, you'll want to consider this insurer because its business model focuses on the specific needs of military families versus a more general insurer like State Farm. For example, while both companies offer similar coverage options, USAA offers discounts tailored to the needs of service members, like up to 15% off your premium for keeping your car in an on-base garage.
Overall, I'd recommend getting a quote from USAA to those who can qualify and urge everyone else to consider State Farm for competitive car insurance rates and good coverage. State Farm would also likely be the better option for people who value support from independent agents and students (or those with students on their policies).
How we evaluate products
FinanceBuzz researches a number of factors in each auto insurance provider to create our reviews. These factors include cost and discounts, complaints and customer satisfaction, coverage, and ease of use. We also gather information from sources such as Insurify, J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC), and the Better Business Bureau to ensure we provide the most useful information to our readers.
USAA pros and cons
- Lower rates for liability and full coverage than other insurers
- Below-average complaints for its market share
- Available in 50 states
- Policies only available to people affiliated with the military
- No GAP insurance
Learn more in our USAA review.
State Farm pros and cons
- Lower rates for liability and full coverage than other insurers
- Below-average complaints for its market share
- No member requirements
- Available in 50 states
- Many local agents
- BBB grade of F
- No GAP insurance
Learn more in our State Farm review.
Which company is better?
| USAA | State Farm | |
| AM Best | A++ | A++ |
| J.D. Power claims satisfaction | 726 (study average 697) | 710 (study average 697) |
| BBB | A+ | F |
| NAIC complaints (private passenger) | 0.96 (Private Passenger) | 0.84 (Private Passenger) |
There isn't a decisive winner between these two insurers when I look at them from the perspective of service quality and consumer satisfaction, but a case could be made for USAA being slightly better on the whole.
The two are tied for financial stability, according to AM Best, but trade for the advantage in other metrics. While USAA has the edge over State Farm in J.D. Power's 2024 Auto Claims Satisfaction Study, State Farm beats USAA slightly with a lower index from the National Association of Insurance Commissioners (NAIC). Both data points reflect on reliability and trustworthiness, but J.D. Power looked specifically at claims for its study to find out more about the experiences customers have with different auto insurers, and the NAIC tracks complaints people make with their state insurance departments and assigns indices according to market share.
Probably a more interesting difference is in the Better Business Bureau (BBB) grades. For the companies to be in such stark contrast here when they're relatively similar everywhere else gives me pause. I tend to give more weight to very negative BBB grades than very positive ones, because I've found it common for insurance companies to have grades of A or A+ and less common for them to have F grades. The BBB states that State Farm's grade is due to "Failure to respond to 32 complaint(s) filed against business," and there are more than 400 unresolved complaints on the platform, at the time of this update.
A reason to avoid State Farm at all costs? Definitely not. But a good reason to take a bit of time to dig into customer reviews? Absolutely.
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Which company is cheaper?
Between State Farm and USAA, USAA is cheaper by mostly modest, sometimes more significant, amounts.
State Farm's average premiums for liability-only and full-coverage car insurance are higher across the board for every type of driver, although the gap between prices from the two is most pronounced for higher-risk drivers, such as teens and people with DUIs.
See how average car insurance rates compare between the two.
| Driver type | USAA liability-only monthly premium | USAA full-coverage monthly premium |
| Clean driving record | $46 | $96 |
| Speeding ticket on driving record | $55 | $116 |
| At-fault accident on driving record | $58 | $122 |
| DUI on driving record | $74 | $156 |
| Teen driver | $79 | $168 |
| Senior driver (60s) | $35 | $74 |
| Senior driver (70s) | $36 | $75 |
| Data sourced from Insurify | ||
| Driver type | State Farm liability-only monthly premium | State Farm full-coverage monthly premium |
| Clean driving record | $53 | $115 |
| Speeding ticket on driving record | $63 | $136 |
| At-fault accident on driving record | $66 | $143 |
| DUI on driving record | $86 | $186 |
| Teen driver | $98 | $212 |
| Senior driver (60s) | $38 | $83 |
| Senior driver (70s) | $34 | $74 |
| Data sourced from Insurify | ||
Clean driving record
For drivers with clean records, meaning no accidents or tickets in their files, average prices are low for both USAA and State Farm relative to other car insurance companies. But for liability-only and full-coverage policies, they're lower for USAA.
To be more specific, you're looking at an average price of $96 for a full-coverage car insurance policy with USAA, compared with an average price of $115 for the same coverage with State Farm. While the difference isn't massive, it is substantial for this type of policy when you're already so far below national averages.
Average rate:
Speeding ticket on driving record
People with speeding tickets are also likely to save on car insurance by choosing USAA over State Farm. Both insurers are competitive for drivers in this situation, which is saying something, but USAA offers an average rate of $55 for liability coverage, and State Farm offers an average rate of $63.
At-fault accident on driving record
Again, average prices are below national average rates for drivers with at-fault accidents in their histories for State Farm and USAA. The gap isn't quite as wide here as it is for the other driver profiles I've covered so far, but USAA's rates are still a bit cheaper for either type of coverage.
DUI on driving record
For drivers with DUIs, rate differences between State Farm and USAA are a bit wider. When you contrast USAA's average full-coverage rate of $156 with State Farm's rate of $186 for equivalent coverage, you're talking about potentially saving a few hundred dollars a year by choosing USAA.
Teen driver
Teen drivers are often considered the riskiest bunch to insure, and this is reflected in average prices. But with this type of driver again, customers who choose USAA tend to come out on top, on average. State Farm's prices are very competitive when you contrast them with rates from other car insurance companies and the national average, but USAA has some of the lowest prices out there. And for full coverage, the difference between the two isn't all that close.
Read more: Best Car Insurance for Teens and Young Drivers
Senior driver
Seniors enjoy the lowest average rates across the board for auto insurance, and it's no different with State Farm and USAA. And here, the price gap is a lot narrower between the two insurers, and this is because you're looking at such low rates to begin with. 60-year-old drivers pay $38 with State Farm, on average, for liability policies, while the same drivers pay $35 per month with USAA.
Discounts
Both USAA and State Farm offer a fair amount of car insurance discounts, with promising savings potential if you qualify for one or more. Which insurer provides the better discounts really depends on which ones you might qualify for.
For instance, State Farm claims drivers can save up to 40% with its passive restraint discount, which extends to eligible factory-installed safety devices like airbags. USAA offers discounts up to $60 if storing your vehicle results in you driving less. While USAA does offer a good student discount of up to 10%, State Farm offers a good student discount of up to 25% and a driver training discount for drivers under 21. On top of that, it offers a student away at school discount that gives policyholders a break if one of the operators on a covered vehicle is a student under the age of 25 who moves away to school and only uses the car when they're home.
Here are some discounts you can qualify for with both insurers.
| Discount | Does USAA have it? | Does State Farm have it? |
| Loyalty | Yes | Yes |
| Multi-policy/bundling | Yes | Yes |
| Multiple vehicle | Yes | Yes |
| Airbag | No | Yes |
| Anti-lock brakes | No | Yes |
| Anti-theft | Yes | Yes |
| Safe driver | Yes | Yes |
| Good student | Yes | Yes |
| Away-from-home student | No | Yes |
| New car | No | No |
| Pay in full | No | Yes |
| Automatic payments | No | No |
| GAP insurance | No | No |
| Senior | No | No |
| Military | Yes | Yes (select states) |
| Defensive driving course | Yes | Yes |
Drive Safe & Save (State Farm) vs. SafePilot® (USAA)
If you're a consistently safe and cautious driver, you might be able to save with a telematics program with either State Farm or USAA.
State Farm's telematics program is called Drive Safe & Save, and the company claims you can save as much as 30% with safe driving. USAA's program, USAA SafePilot®, offers the same maximum savings potential. Plus, you can save 10% just for enrolling in either.
Both programs work by syncing your driving with a mobile app and collecting GPS data about your trips, including details about your mileage, braking, acceleration, and phone use. Signing up for a safe-driving program doesn't guarantee lower car insurance rates, but it can save you money if you drive responsibly.
Coverage
State Farm and USAA offer similar types of coverage. Both companies offer what can be considered a standard roster of coverage options, with few major differences between them. With each, you can choose from the following:
- Collision coverage
- Comprehensive coverage
- Liability coverage
- Uninsured and underinsured motor vehicle coverage
- Personal injury protection (PIP) insurance
- Medical payments coverage
- Rideshare driver coverage
- Emergency road service coverage
- Car rental reimbursement
State Farm also offers travel expense coverage that could help cover meals, lodging, and transportation if you're in an accident more than 50 miles from your home.
Both USAA and State Farm are somewhat unique for offering rideshare insurance and rental reimbursement.
Non-auto coverage options
Both companies offer a range of other coverage beyond car insurance, including home and property insurance, personal coverage like life and health insurance, and even coverage for business owners.
Each company also offers a discount for bundling auto insurance with one of its other products. Bundling home and car insurance for a discount is one of the simplest ways to save on car insurance.
FAQs
Which is cheaper, USAA or State Farm?
The cheapest policy for you will depend on a wide range of factors, including which coverage you select, where you live, and your driving record and credit history. Get a quote from each that accounts for any discounts you may qualify for to get a better idea of which insurer can offer you the lowest rate.
How do I contact USAA?
USAA offers 24/7 customer service at (800) 531-8722. If you're already a customer, you can also send a secure message by signing into your account or use the live chat feature to get fast support.
How do I contact State Farm?
For questions about specific auto insurance claims with State Farm, call (800) 732-5246. The number for State Farm's emergency road services, available 24/7, is (877) 627-5757. For all other inquiries, call (800) 782-8332.
State Farm maintains a large network of independent agents if you prefer hands-on, in-person support to getting help via digital means.
Bottom line
Whether State Farm or USAA is the right insurer for you will depend on a number of factors, but likely the biggest is whether you can even qualify for both. If you're not in the U.S. military, a veteran, or the spouse or child of a current or former service member, USAA is off the table. In that case, going with State Farm would hardly be settling, considering the insurer's below-average rates, wide range of discounts, and extensive coverage. I also think State Farm is the better choice for teens, despite higher average rates, and would recommend it if you want to work with a local agent.
Make sure to compare quotes across multiple insurers before you settle on one. To explore other options, check out our list of the best car insurance companies.
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