Founded in 1922 by a retired farmer and former insurance salesperson, State Farm is the largest provider of auto insurance in the United States. With over 16% market share, State Farm operates in the Bloomington, Illinois headquarters, with over 19,000 independent agents, and has written over 80 million policies. State Farm is also one of Bankrate’s top picks for the best car insurance company in 2021.
USAA was also founded in 1922, but it has specific eligibility requirements for the purchase of insurance products. USAA requires that you are a current military member, veteran or a close family member to apply for insurance coverage. All insurance products are designed to meet the needs of military personnel. USAA, the fifth-largest auto insurance carrier, employs over 36,000 people and has $200 billion in assets as of 2020. This further highlights the size of the insurance company.
Comparison of car insurance rates between State Farm and USAA
State Farm and USAA differ not only in eligibility requirements, but several other metrics also highlight the differences of these two large carriers. J.D. The providers’ J.D. and Bankrate ratings are similar. However, State Farm has an AM Best rating of A++ (Superior), while USAA has an A++ rating (Superior). The auto premiums for both minimum and full coverage also showcase the variations between the two on a national level, although these rates vary by state and each driver’s unique circumstances.
Rates based on credit score
When you apply for insurance in any state, carriers will often review your credit history. State Farm and USAA are no exception. Higher credit scores usually translate into lower premiums. One caveat to this is if you live in Massachusetts, Hawaii or California — these states do not allow credit history to factor into consideration for rates.
Rates based on age
Rates can also be affected by age. Both carriers pay drivers under 18 the highest premiums on their policies. Premium rates drop significantly once you reach 25. While State Farm rates are slightly higher in certain cases, the trend with both providers is consistent. Your rate will differ from the averages.
Driving record rates
Drivers with DUI convictions, speeding tickets or accidents on their records will see their premiums go up at USAA and State Farm. In some cases, rates can rise as high as 75%. This means that a clean driving record will help you avoid an extreme increase.
Discounts on State Farm vs USAA
When comparing State Farm vs. USAA, it is helpful to review the number of discounts. While both carriers offer many discounts, some are unique to each. While both offer discounts for multi-vehicle, multi-policy and good students, there are some other benefits that you might not be aware of.
- SteerClear(r), a program offered by State Farm that offers discounts to drivers under 25 who aren’t involved in an accident and have maintained a clean driving record for three years. You may be eligible for a 20% discount if you maintain a clean driving record over three years.
- Drive Safe and Save(r), a program that offers safe driving through State Farm. You must enroll. If you are eligible, your driving habits will be monitored via your smartphone.
- Safety equipment — You may be eligible for a discount if your vehicle has an anti-theft, anti-lock brakes or airbags.
- Additional savings for military installations — You may be eligible to receive additional savings if you store your vehicle in a storage unit or garage on base. Premiums could receive a 15% discount.
- Vehicle storage — You may be eligible to receive a larger discount if you store your vehicle elsewhere than on base. You can save up to 60% on vehicles that are stored.
- There are no payment plan fees – Many carriers charge extra fees if you spread your premium payments over several month. USAA does not charge any payment plan fees.
Comparison of State Farm and USAA online and mobile experiences
Both State Farm and USAA offer robust online tools and features that allow customers to access all the information they need to manage their policy. Each carrier offers a mobile app that allows access to ID cards and bill payments, roadside assistance, and filing a claim. State Farm offers additional features, including the ability to communicate with an agent via the app and technical assistance.
- 4.8/5 — The app has a wide range of features, which is why it has received a lot of positive reviews. Customers love the ease of using the app to make mobile payments and navigate it.
- 4.7/5 — Android version offers the same capabilities as the Apple. This includes following through with a claim step-by-step. Positive reviews highlight the ease-of-use, while lower ratings reflect frustrations with the updating process.
- 4.8/5 — The USAA has been well received by customers, who praise its ease of use. You can access EVA through the app, which is a digital voice assistant that you can use to help.
- 4.5/5 — USAA ratings are slightly lower than State Farm. Customers complain about the incessant updates and the frequent app freezes.
Questions frequently asked
State Farm is cheaper than the USAA?
Quotes retrieved from Bankrate show that USAA has lower premiums when comparing State Farm and USAA premiums. Rates are determined by many factors such as age, credit score and driving record. These factors can affect the amount of your premiums, depending on your personal circumstances.
Which is the best auto insurance company?
Bankrate has reviewed several carriers and found Geico, Amica, USAA and State Farm are all top choices. It is important that you review all aspects of each carrier including their financial strength, coverage, discounts, customer service ratings, and digital assets.
Can I change my car insurance carrier at any time?
Yes, you can switch auto insurance at any point and should do so if it makes financial sense for you. Be sure to not cancel your existing policy before you have the new one in place. This will prevent any coverage lapse.