USAA vs. State Farm Car Insurance [2025]: Which Is Best for You?

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 members of the military and their families.

If you’re in USAA’s potential customer pool, though, you’ll want to consider the benefits of using an insurer focused 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.

USAA vs State Farm at a glance

	USAA	State Farm
Best for	Military members, veterans, pre-commissioned officers, and their families	Families with young drivers
Important features	Coverage options aimed at meeting the needs of military families Discounts related to military life Mobile app available	Widespread network of independent agents Discounts for young drivers Mobile app available
J.D. Power claims satisfaction score	726 (compare to study average of 697)	710 (compare to study average of 697)
BBB rating	A+	F
AM Best rating	A++	A++

When to go with USAA

USAA’s recent advertising campaign featuring legendary character actor Sam Elliott and beloved pro footballer Rob “Gronk” Gronkowski may have you wondering if getting your insurance through the company is the right move. But USAA coverage isn’t available to everyone.

You’re a qualifying member of the U.S. Armed Forces

Your link to the U.S. military is the primary factor determining whether USAA would be the right choice for you. USAA membership (and subsequent coverage) is only available to U.S. military members and veterans, pre-commissioned officers, and their spouses and children.

If you don’t meet one of these criteria, you won’t be eligible to join USAA and get coverage. Active Duty, Guard, and Reserve members qualify as serving in the U.S. Armed Forces for purposes of USAA coverage, and veterans must have received an Honorable or General Under Honorable Conditions Discharge to be eligible.

Contracted Cadets and Midshipmen attending a U.S. Service Academy or affiliated program, as well as Officers or Warrant Officer Candidates who are commissioning within 24 months, also qualify for USAA membership.

You’re the spouse, former spouse, or child of a USAA member

Spouses of qualifying service members and veterans, as well as divorced or widowed spouses of qualifying USAA members, are also eligible for coverage. Divorced spouses of USAA members are eligible for coverage so long as their former spouse joined USAA before or during the subject marriage. Divorced spouses who’ve since remarried to a non-USAA member are not eligible. Widowed spouses of USAA members are eligible regardless.

Children of USAA members are eligible to apply for membership and coverage with no restrictions.

USAA provides relevant coverage and discounts

Even if you qualify for USAA coverage based on your own status as a member of the U.S. Armed Forces or through a family member, that doesn’t mean it will necessarily be the best choice for you. Weigh your coverage options and get a quote first to determine whether USAA can meet your coverage and budget needs.

Every state has different minimum insurance requirements, but USAA offers insurance in all 50 states, Washington, D.C., and a number of foreign countries and overseas territories, which can be useful for active duty military members who may be required to move with some frequency.

Likewise, USAA offers discounts aimed specifically at service members, including a discount for putting your car in storage while on deployment and a discount for keeping your car in a garage on a military base.

Learn more in our USAA review.

When to go with State Farm

State Farm has been around since 1922, and its jingles and spokespeople are instantly recognizable to anyone with cable TV. But the insurer’s ubiquity doesn’t mean it’s definitely the right choice for you.

You value working with an independent agent

State Farm is notable among competitors for its focus on working directly with agents. The company takes its “Like a good neighbor…” tagline quite literally.

Some car insurance companies will have just one agent per major city, whereas State Farm counts 50 agents in my hometown of Philadelphia alone. Even a smaller city like Bozeman, Montana, has seven State Farm agents.

If you value working directly with a dedicated agent, whether in person or over the phone, State Farm certainly delivers on that front. USAA, meanwhile, does not work with independent agents. You’d be stuck communicating via the company’s mobile app, website, or customer service phone numbers.

You have a student on your policy

While USAA does offer a good student discount of up to 10%, State Farm offers not only a good student discount of up to 25%, but also 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.

If you’re insuring a young driver, this combo of discounts could lead to serious savings that are worth considering when you’re deciding between State Farm and USAA.

Learn more in our State Farm review.

USAA vs. State Farm: Coverage options

State Farm and USAA offer similar types of coverage. Both companies offer what can be considered a standard roster of coverage options.

• Collision coverage
• Comprehensive coverage
• Liability coverage
• Uninsured & underinsured motor vehicle coverage
• Medical payments and personal injury protection 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.

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 lower your car insurance premium.

FAQs

Bottom line

Whether State Farm or USAA is the right insurer for you will depend on a number of factors. If you’re not in the U.S. military, a veteran, or the spouse or child of a current or former service member, though, USAA is off the table.

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.