USAA vs. State Farm: Compare Car Insurance Rates and Coverage

USAA vs. State Farm car insurance quotes

USAA offers cheaper car insurance policies for eligible drivers than State Farm. In fact, USAA ranks as the cheapest major insurance company in the country. So it’s generally cheaper than almost every insurance company, not just State Farm.

Cheapest for most drivers: USAA

USAA offers cheaper quotes than State Farm for both full- and minimum-coverage car insurance. However, both insurers are cheaper than the national average.

A full-coverage policy from USAA costs $1,170 per year, or $98 per month, on average. That’s $143 per year less expensive than the same coverage from State Farm and 53% less expensive than the national average.

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Drivers also pay less for minimum-coverage from USAA. It costs $432 per year, or $36 per month, on average. That’s $100 per year less expensive than the same coverage from State Farm, and 55% cheaper than average.

Cheapest for drivers with prior incidents: USAA

Drivers who have a speeding ticket, at-fault accident or DUI on record also pay less for car insurance from USAA than State Farm.

Auto insurance from USAA is significantly cheaper for drivers with a DUI violation. A full-coverage policy costs $2,222 per year, which is 38% less expensive than State Farm.

While USAA is cheaper across the board, State Farm’s quotes are fairly comparable after a single speeding ticket or accident. Drivers insured with USAA pay 1% less after a ticket and 3% less after an at-fault accident than those who choose State Farm.

Cheapest for young drivers: USAA

Young drivers can also find cheaper car insurance with USAA compared to State Farm. On average, an 18-year-old driver can expect to pay 27% less for coverage from USAA. That equals a difference of $482 per year for minimum coverage and $789 per year for full coverage.

Young drivers who have a speeding ticket or an at-fault accident on their record will find cheaper rates with USAA, too. A minimum-coverage policy from USAA costs 28% less than the same coverage from State Farm for these drivers.

State Farm vs. USAA car insurance rates by state

Although USAA has lower rates than State Farm overall, there are some states where drivers can find cheaper quotes from State Farm.

Of the 42 states where data was available from both insurers, USAA offers cheaper quotes in 27 states, while State Farm has lower rates in 15.

The largest difference in price is in Hawaii, where a full-coverage policy from USAA costs $2,383 less per year than State Farm. On the other hand, State Farm costs $592 per year less than USAA in Pennsylvania.

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USAA vs. State Farm car insurance discounts

USAA and State Farm offer all of the standard discounts that most auto insurance companies do.

State Farm has a slight advantage over USAA in terms of discounts because its discounts are useful to more customers. However, active-duty service members may find the discounts available from USAA to be more useful.

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This list is not exhaustive, as available discounts may differ depending on where you live. Whether you shop with USAA or State Farm, always talk to your insurance agent about what discounts you could qualify for, and take advantage of all of them if you do purchase a policy.

State Farm discounts

State Farm offers six discounts that are not available from USAA, three of which can help young drivers and their families save money on their car insurance.

USAA discounts

USAA offers four discounts that are not available at State Farm.

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USAA vs. State Farm car insurance coverage options

As two of the biggest insurers in the country, USAA and State Farm offer all the basic coverages you would typically see in an auto insurance policy. In addition, both insurers have a number of common coverage add-ons, like roadside assistance, rental car reimbursement and rideshare insurance.

State Farm auto insurance coverages

State Farm only offers one type of coverage not available from USAA: nonowners insurance. This coverage protects drivers who don’t own a vehicle but borrow a car often to drive, or drivers who need to file an SR-22 without a vehicle.

With State Farm rideshare insurance, you’ll be covered:

In comparison, USAA only offers what is called rideshare gap protection, which covers the first stage listed above: the time in which you’re on duty and waiting to pick up customers. But USAA does not cover the time after you’ve accepted a rideshare request.

USAA auto insurance features

USAA offers a few coverage options that are not available from State Farm, the most useful of which is car replacement. This coverage helps replace your car after a total loss by paying an extra 20% more than the actual cash value of your vehicle. This coverage is unusual because it’s not limited to new cars — drivers can add car replacement assistance coverage to any vehicle that has comprehensive and collision coverage.

In addition, USAA also offers essential services expense coverage, funeral expense coverage and work loss coverage. Drivers who purchase PIP insurance already have these coverages included; however, they may be useful for those who live in a state where PIP coverage isn’t available.

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USAA vs. State Farm availability

State Farm and USAA are the largest and fifth-largest auto insurance companies in the U.S., and both offer coverage to drivers across all 50 states.

To purchase a policy, you have to be an active-duty member of the military, a veteran or a family member of a policyholder.

For that reason, State Farm auto insurance is available to more drivers than USAA.

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USAA vs. State Farm customer service

Both State Farm and USAA provide policyholders with an excellent customer experience, but USAA received slightly higher scores from industry reviewers.

USAA earned top marks on J.D. Power’s auto claims satisfaction study, which means that drivers are happy with its claims process. In addition, USAA receives fewer customer complaints than other insurers of a similar size, according to the National Association of Insurance Commissioners (NAIC).

While State Farm’s scores aren’t as high, they’re still excellent. The insurer was ranked above average by J.D. Power, and also receives fewer complaints than its competitors.

Both insurers earned an A++ financial stability rating from AM Best, indicating that they have the ability to pay out claims, even in difficult economic situations.

Methodology

ValuePenguin researched thousands of car insurance quotes from across the entire country for all the states in which data for USAA or State Farm was available.

The sample driver is a 30-year-old man driving a 2015 Honda Civic EX with a clean driving record, except where noted. Coverage levels for minimum-coverage insurance are based on the legal requirements of each state. Coverage levels for a full-coverage policy are:

ValuePenguin’s analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.