State Farm vs. USAA: Pros & Cons (2021)

State Farm and USAA are two of the top auto insurance companies in the United States. USAA auto insurance costs are $61 cheaper per month, but State Farm has a much bigger market share. While both companies are good, USAA has a better J.D. Power score than State Farm. Factors that determine State Farm vs. USAA auto insurance rates will vary based on your driving record and other factors.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jul 18, 2021

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What You Should Know

  • State Farm has the largest market share in the auto insurance industry
  • Overall, USAA auto insurance is cheaper than State Farm
  • State Farm has rideshare coverage and will provide non-standard auto insurance in 2021
  • USAA Insurance has a more substantial financial strength and better customer satisfaction rating than State Farm Insurance
  • You can use a State Farm login or USAA login to manage your account online or from each company’s mobile app

The best way to save with big companies like State Farm and USAA is to compare them to competitors. Since you’ve focused on State Farm vs. USAA auto insurance, it’s time to compare the factors that determine monthly premiums, discounts, and much more.

If you need more details about both companies, check out our State Farm Auto Insurance Review or USAA Auto Insurance Review for more information.

Before you learn more about State Farm vs. USAA, enter your ZIP code in the free comparison tool above to find auto insurance quotes from the best companies in your local area.

State Farm vs. USAA Auto Insurance: Which company is the cheapest?

Sometimes shopping for car insurance feels like a chore, but you need it if you plan to drive. If you’ve set your sights on State Farm and USAA for affordable auto insurance – you have guessed right. State Farm and USAA are two of the cheapest car insurance companies in the United States.

Before we go into how cheap both companies are, let’s look at how State Farm vs. USAA auto insurance quotes match up.

State Farm vs. USAA Summary
SummaryState Farm Car Insurance StatsUSAA Auto Insurance Stats
Year Founded19221922
HeadquartersOne State Farm Plaza Bloomington, IL 617109800 Fredericksburg Road San Antonio, TX 78288
Phone Number1-800-782-83321-800-531-8722
Websitehttps://www.statefarm.com/https://www.usaa.com/
Available in how many states?All StatesAll States
Direct Premiums$41.1 Billion$15.2 Billion
Market Share16%6%
National Average Auto Insurance$272/month$211/month
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USAA is only available to veterans and their immediate families. Meanwhile, State Farm is open to everyone. If you happen to be a veteran or in the immediate family of a veteran, you can pick between either.

As you keep reading, you’ll see how various factors determine auto insurance rates.

Which is cheapest by driving record?

Both State Farm and USAA look at your driving record when they calculate your car insurance rates. Let’s see how each company’s rates stack up for a clean record and common violations.

State Farm vs. USAA Auto Insurance Rates by Driving Records
Driving Record SummaryState Farm Monthly Auto Insurance RatesUSAA Monthly Auto Insurance Rates
Clean Driving Record$235$161
With 1 Speeding Violation$266$183
With 1 Accident$283$210
With 1 DUI$303$292
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A clean driving record is one of the best ways to maintain cheap auto insurance. However, USAA auto insurance is much less expensive than State Farm.

Which is cheapest by credit score?

Jake from State Farm may have missed the message about your credit history and car insurance policy. You can receive a massive discount on car insurance rates if you have a good credit score.

Why? Auto insurance companies correlate good credit to low chances of filing claims.

This means that customers with poor credit usually have higher than average rates because their credit score correlates to higher chances of filing claims. So how much is State Farm or USAA car insurance based on credit? Let’s find out.

State Farm vs. USAA Auto Insurance Rates by Credit Scores
Credit Score SummaryState Farm Monthly Auto Insurance RatesUSAA Monthly Auto Insurance Rates
Good Credit (670-739)$181$152
Fair Credit Score (580-669)$238$185
Poor Credit Score (300-579)$413$308
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State Farm’s monthly premiums based on credit score are more expensive than USAA. If you’re a veteran with poor credit, you will save $105 more if you buy a policy with USAA.

Which is cheapest by age, gender, and marital status?

Age and gender are two factors that have a significant impact on car insurance rates. Age can reveal the driving experience of the insured person, but gender reveals risk.

Teen and young adult drivers are less experienced than older drivers, and male drivers take more risks behind the wheel. Also, your auto insurance company may look at your marital status.

Why marital status? Single drivers are riskier drivers. Married drivers take less risk and usually are older.

Let’s compare State Farm vs. USAA car insurance based on age, gender, and marital status.

State Farm vs. USAA Auto Insurance Rates by Age, Gender, and Marital Status
Age, Gender, and Marital StatusState Farm Monthly Auto Insurance RatesUSAA Monthly Auto Insurance Rates
Married 60-year-old female$156$121
Married 60-year-old male$156$121
Married 35-year-old female$173$129
Married 35-year-old male$173$128
Single 25-year-old female$195$166
Single 25-year-old male$213$177
Single 17-year-old female$496$401
Single 17-year-old male$610$449
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State Farm and USAA have higher rates for teen drivers. There isn’t a significant drop in the price of car insurance until the age of 25. Even if auto insurance is higher than you expect when you get a quote, there’s a chance you can lower monthly payments. Keep reading to find out more.

Which is cheapest by commute mileage?

Another way you can lower auto insurance rates is by driving less during the duration of your policy. The less you’re on the road, the lower your chances you have of filing a claim.

Driving more could increase your car insurance rates per month. But how much more will you pay at State Farm vs. USAA? Let’s examine the auto insurance rates based on commute mileage.

State Farm vs. USAA Auto Insurance Rates by Commute Mileage
Estimated Commute MileageState Farm Monthly Auto Insurance RatesUSAA Monthly Auto Insurance Rates
10 Miles Commute (6,000 miles/yr)$265$207
25 Miles Commute (12,000 miles/yr)$279$216
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USAA is still more affordable than State Farm. If you double your commute mileage at State Farm, you’ll pay $14 more on your policy per month.

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State Farm vs. USAA Auto Insurance: Which company has more coverage options?

Now that you have an idea of how much you’ll spend on State Farm and USAA auto insurance, let’s consider where your money will go. You can choose to have the minimum requirement, but some circumstances require you to get more coverage.

Compare State Farm and USAA to see which company provides more coverage.

Comparing State Farm and USAA Auto Insurance Coverages
State Farm Auto Insurance CoveragesUSAA Auto Insurance Coverages
Collision CoverageCollision Coverage
Comprehensive CoverageComprehensive Coverage
Liability CoverageLiability Coverage
Car Rental and Travel Expenses CoverageUninsured & Underinsured Motorist Coverage
Uninsured Motorist CoverageFull Coverage
Underinsured Motorist CoverageRoadside Assistance
Medical Payments CoveragePersonal Injury Protection
Emergency Roadside AssistanceRental Car Reimbursement
Rideshare Driver Coverage
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USAA may be more affordable, but State Farm has more coverage options. However, USAA makes up for the lack of car insurance options with insurance services, such as Trailer and RV insurance.

State Farm vs. USAA Auto Insurance: Who has more discounts?

If you see an expensive auto insurance quote as you’re putting in your personal information, don’t worry. Discounts can bring costly rates down to cost-efficient prices that are possibly much lower than the monthly rates you saw earlier in the guide.

But which company offers more deals? Let’s compare State Farm and USAA’s discount availability below.

State Farm vs. USAA Auto Insurance Discounts
Auto Insurance DiscountsState Farm AvailabilityUSAA Availability
Adaptive Cruise Control
Adaptive Headlights
Anti-lock Brakes
Anti-Theft
Daytime Running Lights
Electronic Stability Control
Utility Vehicle
Vehicle Recovery
VIN Etching
Lane Departure Warning
Newer Vehicle
Green Vehicle
Forward Collision Warning
Claim Free
Continuous Coverage
Defensive Driver
Distant Student
Driver's Ed
Driving Device/App
Early Signing
Emergency Deployment
Engaged Couple
Family Legacy
Family Plan
Farm Vehicle
Fast 5
Federal Employee
Full Payment
Further Education
Garaging/Storing
Good Credit
Good Student
Homeowner
Life Insurance
Low Mileage
Loyalty
Married
Membership/Group
Military
Military Garaging
Multiple Drivers
Multiple Policies
Multiple Vehicles
New Address
New Customer/New Plan
New Graduate
Newly Licensed
Newlyweds
Non-Smoker/Non-Drinker
Occasional Operator
Occupation
On-Time Payments
Online Shopper
Paperless Documents
Paperless/Auto Billing
Passive Restraint
Recent Retirees
Renter
Roadside Assistance
Safe Driver
Seat Belt Use
Senior Driver
Stable Residence
Students & Alumni
Switching Provider
Volunteer
Young Driver
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USAA provides more discounts than State Farm. Does that make State Farm a bad company? Absolutely not. Having more discounts just means it gives customers more opportunities to save.

Which company has the better financial strength and customer satisfaction ratings?

Whenever you shop for auto insurance, you should look at the ratings to ensure you’re making a confident decision. Although State Farm and USAA are in the top ten, it’s still a good idea to check out what financial strength agencies and other customers are saying about them.

We compiled a collection of ratings to show you where State Farm and USAA stand in finances and customer satisfaction.

State Farm vs. USAA Financial Strength and Credit Ratings
AgenciesState Farm RatingsUSAA Ratings
AM BestA++A++
Moody'sAa1Aa1
S&PAAAA+
NAIC Complaint Index0.981.8
J.D. Power - Power Circle RatingsBetter Than MostAmong The Best
Consumer Reports8995
Apple App Store (iOS)5 stars4 stars
Google Play Store (Android)4 stars5 stars
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A.M. Best, Moody’s, and S&P focus on the financial strength and credit ratings. In other words, these rating agencies target insurance companies’ financial performance. So far, State Farm and USAA have a stable financial outlook. However, USAA has a better S&P rating.

NAIC, J. D. Power, and Consumer Reports are driven by customer surveys, studies, and reviews. According to NAIC, State Farm has fewer complaints than USAA. But, USAA has better J. D. Power and Consumer Reports ratings.

Finally, the mobile app ratings are the reviews from customers on Apple App Store and Google Play Store. State Farm has a stronger score on iOS, while USAA has a better score on Android.

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State Farm vs. USAA Auto Insurance: The Bottom Line

So what are the pros and cons of State Farm and USAA? Both companies are more affordable than most of their competitors. You can get reliable coverage and there are plenty of discounts.

However, USAA is only available to veterans and their immediate families. State Farm would be a good alternative unless you have poor credit. There are several cons, but you can find plenty of pros to negate both companies’ drawbacks.

Comparing auto insurance is important. Why stop at State Farm vs. USAA auto insurance? Enter your ZIP code in the free online quote tool below to compare the top auto insurance companies in your area.

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