GEICO vs State Farm
GEICO is the cheaper of these two on the published averages. Whether that makes it the better buy depends on three things the price never tells you.
The verdict
State Farm takes it, 1–0 on rounds.
On averages GEICO is cheaper by about $163 a year — but get your own quote from both, because the published averages disagree with each other by nearly as much as they differ from one another.
Choose GEICO if…
- • You want GEICO's lower average rate
- • You drive well and will accept being monitored
Choose State Farm if…
- • You want State Farm's particular strengths
- • You want a telematics programme that cannot raise your rate
Round by round
- Round 1Being tracked for a discountState Farm winsGEICO5/10
10% max
DriveEasy — can increase your rate
- Advertised up to 10%
- Opt-in
- Bad driving can increase your premium
- Typical real saving is nearer 10%
Source: https://www.insuremojo.com/telematics-insurance-discount-programs/
State Farm8/1030% max
Drive Safe & Save — discount only, never an increase
- Cannot be used to raise your rate
- Opt-in
- Advertised maximum is rarely reached
- Typical real saving is nearer 10%
Source: https://www.insuremojo.com/telematics-insurance-discount-programs/
State Farm can only discount you. The other one can charge you more.
- Round 2What happens when you claimTieGEICO6/10
see note
undercuts the market on premium but does not reach the top three on claims satisfaction
- Large enough to have a mature claims operation
- Not a leader on claims satisfaction
Source: https://www.jdpower.com/business/insurance/auto-claims-satisfaction-study
State Farm6/10no standout record
nothing notable in the published studies
- Large enough to have a mature claims operation
- Not a leader on claims satisfaction
Source: https://www.jdpower.com/business/insurance/auto-claims-satisfaction-study
The cheap ones are rarely the ones you want on the phone after a crash.
- Round 3Size, reach and who you deal withTieGEICO7/10
second-largest auto insurer by market share
market position
- Established national carrier
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
State Farm7/10largest auto insurer in the US, agent-based
market position
- Established national carrier
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
Both are big enough to pay a claim. That is the floor, not a feature.
State FarmSide by side
- Rates vary widely by driver
- Figures from independent rate studies
- Advertised up to 10%
- Opt-in
- Rates vary widely by driver
- Figures from independent rate studies
- Anyone can buy it
- Established national carrier
- About $334/yr more on average
- Bad driving can increase your premium
- Typical real saving is nearer 10%
- Not a leader on claims satisfaction
- About $497/yr more on average
- Advertised maximum is rarely reached
- Typical real saving is nearer 10%
- Not a leader on claims satisfaction