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USAA vs. State Farm

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  • USAA has a strong customer service reputation and flexible payment and coverage options, despite limited availability.
  • State Farm is the nation’s largest car insurance provider and offers strong coverage options and discount opportunities.
  • Read our comparison between these top two providers to make the best choice for your auto insurance needs.

Affiliate disclosure: Automoblog and its partners may be compensated when you purchase the products in this article.

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, 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.

USAA vs. 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.

USAAState Farm
Overall Rating4.64.7
SuperlativeBest for Military FamiliesBest Overall
AvailabilityFor military members, available in 50 statesNo restrictions, available in 48 states*
Customer Service4.64.7
AM Best Financial Strength RatingA++A++
J.D. Power Claims Satisfaction890/1,000882/1,000
Mobile App Google Play Rating4.14.7

*Although State Farm advertises nationwide availability, the company is no longer taking on new customers in Massachusetts or Rhode Island. Find out more about Massachusetts car insurance and Rhode Island car insurance in our reviews.

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 from USAA or State Farm include the following:

  • 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.

USAA vs. State Farm Coverage Options

When comparing USAA vs. State Farm, both car insurance providers offer a variety of choices for coverage.

USAAState Farm
Bodily Injury LiabilityYesYes
Property Damage LiabilityYesYes
Personal Injury ProtectionYesYes
Medical PaymentsYesYes
Uninsured/Underinsured MotoristYesYes
Roadside AssistanceYesYes
Rental Car ReimbursementYesYes
Rideshare InsuranceYesYes
Accident ForgivenessYes
Glass CoverageYes
Guaranteed Asset Protection (GAP)Yes

USAA vs. State Farm Cost

Our cost estimates show that USAA tends to be a more affordable option for car insurance coverage than State Farm. On average, USAA costs $1,054 per year for a full coverage policy, while State Farm averages $1,481 per year. However, the final cost you pay for car insurance will depend on factors, such as your location, demographic information, the company you choose to underwrite your policy, and the discounts available to you.

Is USAA Cheaper Than State Farm?

Yes, our research shows that car insurance from USAA is generally 33% 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. 

USAA vs. State Farm Car Insurance Discounts

The best way to lower your car insurance rates is to take advantage of car insurance discounts. Here’s a look at the discount opportunities offered by USAA and State Farm:

USAAState Farm
Multiple VehicleYesYes
Multiple PolicyYesYes
Good StudentYesYes
Safe DriverYesYes
Defensive DrivingYesYes
Driver TrainingYesYes
Vehicle SafetyYes
Passive RestraintsYes
Student Away At SchoolYes
New VehicleYes
Annual MileageYes
Vehicle StorageYes
Military InstallationYes
Family DiscountYes
Length of Membership SavingsYes

State Farm Drive Safe and Save

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 SafePilot

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 and 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.

USAAState Farm
Better Business Bureau (BBB)Not RatedA+
AM BestA++ (Superior)A++ (Superior)

USAA vs. State Farm Customer Satisfaction

In J.D. Power 2022 U.S. Auto Claims Satisfaction Study?, USAA tied for fifth with 890 out of a possible 1,000 points, whereas State Farm earned 882 in the same study. USAA also scored 875 out of 1,000 points while State Farm scored 890 in the J.D. Power 2022 U.S. Insurance Shopping Study. 

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.

USAA vs. State Farm Customer Reviews

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.”

-via BBB

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.”

-via BBB

USAA vs. State Farm: Which Is Better?

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 families. 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.

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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 Discount Selection and Progressive the Best for High-Risk Drivers. Both companies have A+ ratings from the BBB and positive reviews from customers.

Geico: Best Discount Selection

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:

  • Multi-policy
  • Multi-car
  • Continuous insurance
  • Teen driver
  • Good student
  • Distant student discount
  • Homeowners
  • Online quote
  • Sign online
  • Paperless
  • 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.

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.

  • Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
  • Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
  • Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
  • Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
  • Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
  • Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.