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State Farm vs. USAA: Which Car Insurance Is Cheaper?

Enter your zip code below to view companies that have cheap auto insurance rates.

Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: Jul 8, 2021

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Key Takeaways

  • When it comes to State Farm vs. USAA, State Farm car insurance is more expensive
  • USAA insurance is only offered to military families and veterans
  • USAA has better financial and customer satisfaction ratings than State Farm

You have a lot of choices when it comes to car insurance companies, and comparing them side by side can help you narrow down your options.

State Farm vs. USAA: which company will provide the best and cheapest car insurance for you? We’ll compare rates, discounts, financial ratings, and customer satisfaction ratings to help you answer that question.

Before jumping into this State Farm vs. USAA car insurance review, get free quotes by entering your ZIP code to compare multiple companies in your area.

Is State Farm car insurance or USAA car insurance cheaper?

Just what factors are used to determine your car insurance rates may surprise you.

Companies consider your age, gender, marital status, driving record, and credit history when determining your insurance premium. This is why rates are different for every driver.

Let’s start by comparing how affordable State Farm vs. USAA car insurance rates are by age, gender, and marital status.

You may already know that young driver car insurance is costly, but you might be surprised to discover just how much age affects your car insurance rates.

State Farm vs. USAA Average Annual Car Insurance Rates by Age, Gender, and Marital Status
Age, Gender, and Marital StatusState Farm Average Annual RatesUSAA Average Annual Rates
Single 17-year-old female$4,875.91$4,695.06
Single 17-year-old male$6,130.77$5,225.88
Single 25-year-old female$1,979.45$1,913.08
Single 25-year old male$2,176.45$2,119.73
Married 35-year-old female$1,734.93$1,484.88
Married 35-year-old male$1,734.93$1,482.91
Married 60-year-old female$1,558.06$1,395.84
Married 60-year-old male$1,558.06$1,400.76
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In a comparison of State Farm vs. USAA car insurance rates, you can see that State Farm is more expensive than USAA, no matter the age, gender, or marital status of the driver.

Your driving record is one of the most important factors that car insurance companies look at. Accidents, speeding tickets, and DUIs will cause your rates to skyrocket.

State Farm vs. USAA Average Annual Car Insurance Rates by Driving Record
Driving RecordState Farm Average Annual RatesUSAA Average Annual Rates
Clean record$2,821.18$1,933.68
With 1 accident$3,396.01$2,516.24
With 1 DUI$3,636.80$3,506.03
With 1 speeding violation$3,186.01$2,193.25
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USAA has the cheaper rates regardless of your driving record, though you might notice that USAA also has larger rate increases for infractions than State Farm.

When determining your car insurance rates, your credit score may also be taken into account.

Car insurance companies believe that if you have a better credit score, you’re more likely to pay for your own losses rather than filing a claim.

State Farm vs. USAA Average Annual Car Insurance Rates by Credit Score
Credit HistoryState Farm Average Annual RatesUSAA Average Annual Rates
Good$2,174.26$1,821.20
Fair$2,853.00$2,219.83
Poor$4,951.20$3,690.73
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Yet again, USAA is the cheaper choice.

Car insurance companies can no longer use your credit score to calculate your rates in some states, such as California, so make sure to check your local insurance laws before making any kind of judgment based on these rates alone.

You may live in a state, such as California or Michigan, where basing car insurance on credit score is illegal. Check out our car insurance by state page before judging State Farm vs. USAA car insurance rates based on credit score alone.

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Does State Farm or USAA have better car insurance discounts?

Car insurance discounts are one of the most effective ways to greatly reduce your rates. Many discounts, such as good student and multi-car discounts, are available from most auto insurance companies.

The table below shows you the discounts offered by State Farm and USAA. The amount of the discount is listed if it is known. Look through this list to see which company can provide you with the most savings.

State Farm vs. USAA Car Insurance Discounts
Car Insurance DiscountsState Farm (%)USAA (%)
Anti-lock Brakes5x
Anti-Theft15x
Claim Free1512
Daytime Running LightsN/Ax
Defensive Driver53
Distant Studentxx
Driver's Ed153
Driving Device/App505
Early SigningN/A12
Family LegacyN/A10
Garaging/StoringN/A90
Good CreditxN/A
Good Student253
Homeowner3N/A
Low Mileage30x
LoyaltyN/Ax
Marriedxx
Militaryxx
Military GaragingN/A15
Multiple Policies17x
Multiple Vehicles20x
Newer Vehicle4012
Occasional OperatorN/Ax
Paperless/Auto Billing$23
Passive Restraint40x
Safe Driver1512
Senior DriverN/Ax
Vehicle Recovery5x
VIN EtchingN/Ax
Young DriverN/A$75
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The two companies offer many of the same discounts, but there are some differences. For example, State Farm offers a homeowners discount and USAA doesn’t. However, USAA offers a family legacy discount and State Farm does not.

Also, it wouldn’t hurt to ask about bundling discounts. Be sure to compare USAA vs. State Farm homeowners insurance before bundling. Many ask, “Why is USAA homeowners insurance so expensive?” USAA may not offer a bundling discount.

When you compare State Farm vs. USAA car insurance quotes, make sure you ask about any available discounts.

How do State Farm and USAA compare in financial strength and customer satisfaction?

Let’s take a closer look at external ratings for State Farm vs. USAA car insurance companies.

A.M. Best ranks the financial stability of insurance companies. State Farm received an A++ rating, and USAA insurance scored an A++ from A.M. Best. This means both companies have a superior ability to meet their financial obligations.

State Farm is not rated by the Better Business Bureau, but USAA scored an A-.

J.D. Power rates businesses based on customer satisfaction, looking at criteria like price, billing, claims, and products offered. State Farm ranked about average in most areas, while USAA ranked above average.

With your State Farm login or USAA login, you can access your account, pay bills, and get proof of insurance on the companies’ websites and mobile apps. You can also get a USAA or State Farm car insurance quote online.

Additional coverages, such as roadside assistance and homeowners insurance, are also available from State Farm and USAA.

If you need assistance or have concerns, you can contact each company 24 hours a day. The USAA customer service number is (800) 531-8722, and the State Farm number is (800) 782-8332.

Maybe you’re wondering, “Can I get USAA and State Farm insurance near me?” Yes, both companies are available in all 50 states.

You’ll have a good experience with USAA and State Farm claims departments, and you can expect both to handle your complaints with regard.

Before you buy State Farm vs. USAA car insurance, do more research by entering your ZIP code into our free comparison tool to compare car insurance quotes from the car insurance companies in your area.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

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