USAA vs State Farm
USAA 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
Rounds split 1–1; State Farm edges it on total score.
On averages USAA is cheaper by about $497 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 USAA if…
- • You want USAA's lower average rate
- • You want a telematics programme that cannot raise your rate
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 1What you actually payUSAA winsUSAA9/10
$1,533
average annual full-coverage premium
- Cheaper on the published averages
- Figures from independent rate studies
- Your own quote may differ sharply
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
State Farm5/10$2,030
average annual full-coverage premium
- Rates vary widely by driver
- Figures from independent rate studies
- About $497/yr more on average
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
About $497 a year apart — and USAA is the cheaper one.
- Round 2Whether you can even buy itState Farm winsUSAA3/10
military members, veterans and their families only
who is allowed to buy a policy
- Consistently the cheapest major insurer
- Military affiliation required
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
State Farm9/10open to all
who is allowed to buy a policy
- Anyone can buy it
Source: https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
USAA wins on paper and is unavailable to most people.
- Round 3Size, reach and who you deal withTieUSAA7/10
consistently the cheapest major insurer
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
- Cheaper on the published averages
- Figures from independent rate studies
- Consistently the cheapest major insurer
- Established national carrier
- Rates vary widely by driver
- Figures from independent rate studies
- Anyone can buy it
- Established national carrier
- Your own quote may differ sharply
- Military affiliation required
- Advertised maximum is rarely reached
- Typical real saving is nearer 10%
- About $497/yr more on average
- Advertised maximum is rarely reached
- Typical real saving is nearer 10%
- Not a leader on claims satisfaction