USAA and State Farm are two of the top choices for auto insurance nationwide, but which is right for you? In this review, we will compare USAA vs State Farm coverage, cost, discounts, and more to help you decide where you should go for 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 provider 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.
In this article:
USAA And State Farm Highlights
Our in-depth review of USAA found that the auto insurance provider is the best option for military members and their families. State Farm, on the other hand, has great coverage for teens and student drivers thanks to a variety of discounts for those age groups.
Here’s an overview of what we found when we compared USAA vs State Farm.
| USAA | State Farm | |
|---|---|---|
Overall Rating | 5.0 | 4.5 |
Superlative | Best for Military | Best for Students |
Availability | For military members, available in 50 states | No restrictions, available in 48 states* |
Coverage | 4.5 | 4.0 |
Cost | 4.5 | 4.0 |
Customer Service | 5.0 | 3.5 |
AM Best Financial Strength Rating | A++ | A++ |
J.D. Power Claims Servicing | 5/5 | 3/5 |
Mobile App Google Play Rating | 4.6 | 4.1 |
*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 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 coverage you might want to consider adding onto 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 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.
Other forms of auto insurance coverage can be purchased for an additional charge. Some of these 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.
| USAA | State Farm | |
|---|---|---|
Bodily Injury Liability | ✓ | ✓ |
Property Damage Liability | ✓ | ✓ |
Collision | ✓ | ✓ |
Comprehensive | ✓ | ✓ |
Personal Injury Protection | ✓ | ✓ |
Medical Payments | ✓ | ✓ |
Uninsured/Underinsured Motorist | ✓ | ✓ |
Roadside Assistance | ✓ | ✓ |
Rental Car Reimbursement | ✓ | ✓ |
Rideshare Insurance | ✓ | ✓ |
Accident Forgiveness | ✓ |
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.
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 discounts, comparing USAA vs State Farm:
| USAA | State Farm | |
|---|---|---|
Multiple Vehicle | ✓ | ✓ |
Multiple Policy | ✓ | ✓ |
Good Student | ✓ | ✓ |
Safe Driver | ✓ | ✓ |
Defensive Driving | ✓ | ✓ |
Driver Training | ✓ | ✓ |
Vehicle Safety | ✓ | |
Anti-Theft | ✓ | |
Passive Restraints | ✓ | |
Accident-Free | ✓ | |
Student Away At School | ✓ | |
New Vehicle | ✓ | |
Annual Mileage | ✓ | |
Vehicle Storage | ✓ | |
Military Installation | ✓ | |
Family Discount | ✓ | |
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 discounts. The data collected by this program can never work against you to increase your car insurance rates – it can only save you money.
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 through the USAA app.
USAA Vs State Farm: Quotes And Claims
When you look at USAA vs State Farm in terms of quotes, both companies offer fast, free quotes online and by phone. USAA received a score of 896 out of a possible 1,000 on J.D. Power’s 2019 U.S. Insurance Shopping Study℠, while State Farm received a score of 847. To start comparing quotes, follow the link below.
If you are a USAA or State Farm customer, you have 24/7 access to your account through a mobile app and website. With both companies, customers can file claims on the app, through the website, or by calling their local agent.
In J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study℠, USAA earned the highest score of any auto insurance company with 900 out of a possible 1,000 points, whereas State Farm earned 878 in the same study. 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: 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.
| USAA | State Farm | |
|---|---|---|
Better Business Bureau (BBB) | Not Rated* | A+ |
AM Best | A++ (Superior) | A++ (Superior) |
*USAA previously held an A+ rating from the BBB but is currently being reassessed following the resolution of the court case Bureau of Consumer Financial Protection vs USAA. For more information, visit USAA’s BBB page.
Here 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.
“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
“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
Conclusion: USAA Or State Farm?
Based on our research of USAA vs State Farm, both providers are excellent choices for car insurance. We give USAA a 5.0-star rating and State Farm a 4.5-star rating.
USAA came out slightly above State Farm, but USAA is only available to military members (active or retired) and their immediate family members. 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.
When you’re ready to start comparing car insurance quotes, follow the link 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.
With Geico, you can get low rates and coverage like mechanical breakdown insurance and roadside assistance. Progressive offers great technology, including the Name Your PriceⓇ tool, and coverage like custom parts and equipment value. We think either would be a great choice for your next auto insurance policy.
