USAA vs. State Farm Auto Insurance: Which Insurer Is Better
|

USAA vs. State Farm Auto Insurance: Which Insurer Is Better?

One of the hardest parts of choosing an auto insurance company is deciding which is best for you, especially when you have several options available to you.

This decision to choose the company to buy insurance coverage is more than a nightmare. The economy is hard, and people are scared of purchasing car insurance from a company that won’t meet their expectations in the long run.

So if you were left with either choosing USAA vs. State Farm auto insurance, which of the top insurance companies are you going to pick? Difficult right? That’s why we are here. We created this USAA vs State Farm auto insurance review specifically to help you pick the best car insurance company to buy your coverage.

Pros and Cons of USAA

Here are the 5 pros and cons of USAA:

Pros

  • Excellent customer service.
  • Competitive insurance rates for military members and their families.
  • A wide range of financial products and services.
  • High customer satisfaction ratings.
  • Access to exclusive member benefits.

Cons

  • Limited eligibility: only available to military members, veterans, and their families.
  • Limited physical branch locations.
  • Some customers may find better rates with other providers.
  • Not all services are available to non-military family members.
  • Limited ATM network compared to larger banks.

Pros and Cons of State Farm

Here are the 5 pros and cons of State Farm:

Pros

  • Extensive network of agents and local offices for personalized service.
  • Diverse insurance products are available, including auto, home, life, and more.
  • Strong financial stability and high credit ratings.
  • User-friendly mobile app and online tools for policy management.
  • Good customer service reputation.

Cons

  • Can be relatively more expensive than some competitors.
  • Rates may vary significantly depending on location and individual circumstances.
  • Limited discounts compared to other insurers.
  • Coverage options may not be as customizable as with some other providers.
  • Some customers report occasional claim processing delays.

USAA vs. State Farm Auto Insurance: Which is Better?

Generally, based on our reviews and metrics of comparison, USAA auto insurance is better than State Farm in almost all aspects. USAA takes the lead in customer service, claims handling process, loyalty of customers, and price. State Farm, on the other hand, has solid rankings, but they can fluctuate a bit.

See also  8 Car Insurance Claim Adjuster Secret Tactics You Should Know

For instance, we asked State Farm customers some questions, and not even half of the people who purchased auto insurance with State Farm were totally satisfied with their discounts. From the same respondents, less than one-third were totally happy with State Farm’s good driver tracking programs.

The main downside of USAA auto insurance is that it’s usually restricted to members of the military, those who are veterans, and their families. This means that if you are not a military personnel or related to one, then you don’t qualify for USAA.

Most people don’t see USAA as an option when they want to buy car insurance because of the military requirements. If you qualify, you’ll need to become a member before getting a quote. So, it is less straightforward to get a quote with USAA compared to State Farm, where anyone interested can easily get an online quote.

State Farm also tends to have lower average premiums for drivers with a record of DUI.

According to available data, State Farm scores highly in areas such as customer loyalty, customer support, and the high possibility of customers renewing their car insurance coverage.

USAA vs. State Farm: USAA comes top in customer service

The data available to us shows that USAA is better than State Farm in the area of customer service.

Approximately 75% of USAA-insured respondents who have yet to file a claim reported being totally satisfied with how easy it is to reach customer service. On the flip side, approximately 68% of State Farm-insured individuals without a claim expressed the same level of satisfaction with the ease of contacting customer service.

When it comes to filing a claim, roughly 81% of USAA customers who went through the process were totally satisfied with its ease, compared to 71% of State Farm drivers who felt the same way. It’s worth mentioning that in this category, State Farm secures the second spot among the other best auto insurance companies in the USA.

USAA vs. State Farm: USAA comes on top in handling claims

USAA surpasses State Farm by a substantial margin when it comes to handling car insurance claims. Indeed, State Farm holds the fifth position among the top auto insurance companies, although its score in this category is still higher than the national average.

Just to give you some context, approximately 74% of respondents expressed complete satisfaction with how USAA resolved their claims, whereas only 67% gave State Farm the exact rating.

USAA vs. State Farm: USAA comes top for Customer Loyalty

USAA takes the top spot for customer loyalty rate, with State Farm securing the second position. Therefore, if you don’t meet USAA’s rigid membership criteria, State Farm emerges as the top choice when considering customer loyalty, which is an aspect of customer satisfaction. Despite its strengths, State Farm doesn’t excel in every aspect of customer loyalty.

See also  6 Top Strategies to Get Cheap Auto Insurance Quotes on USAA

USAA vs. State Farm Auto Insurance: Which is Cheaper?

The average auto insurance rate for USAA is cheaper than State Farm. To make it clearer, USAA boasts a lower overall average rate at $875, while State Farm’s average rate is $1,169. It’s worth noting that average rates for both companies are less than the national average of $1,321 in the United States.

Please note that auto insurance rates are not fixed. They can change a lot depending on factors like your driving record, where you live, and how old you are, all of which can play a role in what you pay.

This is why I am a strong advocate of getting car insurance quotes directly from the insurer that you want.

We are committed to helping you find the best car insurance rates between USAA and State Farm. Here is an overview of the average rates of the two companies in various demographics.

USAA is cheaper than State Farm for Teen Drivers

Company17-year-old Females17-year-old Males
State Female$2,986$3661
USAA$,2,714$2,955
National Average$4,515$5,140
USAA vs. State Farm: Auto insurance rates for teen drivers

Insurance for teenage drivers is expensive across all insurance companies. However, premium rates for both State Farm and USAA are below the national average rate.

When it comes to teen drivers, not only is USAA the more affordable choice between the two companies that we are reviewing, but it also stands out as the cheapest option among the top insurance companies in the United States.

USAA Is Cheaper than State Farm for Young Adults

Company25-year-old Females25-year-old Males
State Farm$1,262$1,396
USAA$1,033$1,086
National Average$1,487$1,555
USAA vs. State Farm: Car insurance rates for young adults

Young adults might find USAA to be a potentially cheaper option compared to State Farm. However, the auto insurance rates for the two insurers are below the national average in the USA for young adults.

USAA is cheaper than State Farm for Adults

Company35-year-old Females35-year-old Males
State Farm$1,139$1,139
USAA$812$810
National Average$1,274$1,278
USAA vs. State Farm: Auto insurance rates for young adults

For young adults that are within the age bracket of 35 years old, when you want to buy auto insurance, USAA has the lowest rates when compared with State Farm. In this category, State Farm holds the third-lowest rate if you compare it with other top insurers.

USAA is cheaper than State Farm for Seniors

Company60-year-old Females60-year-old Males
State Farm$1,038$1,038
USAA$755$756
National Average$1,149$1,183
USAA vs. State Farm: Auto insurance rates for seniors

Once more, when it comes to senior drivers, USAA takes the lead with the lowest auto insurance rate among the top car insurance companies. On the other hand, State Farm is expensive and falls below the rates of the national average.

USAA Is Cheaper than State Farm for Insuring Drivers with Poor Credit

InsuranceAverage Annual Rate
State Farm$2,803
USAA$1,602
National Average$2,227
USAA vs. State Farm: Car insurance rates for drivers with poor credit

If you have poor credit, expect to pay a higher premium for vehicle insurance. Taking a closer look, you will discover that the total rate that USAA offers for this demographic is about twice the average rate for USAA.

Despite the impact of poor credit, USAA’s rate is less than the rate of both State Farm and the national average in general.

See also  What Happens if You Drive Without Insurance and Get Pulled Over in the United States?

USAA is cheaper than State Farm for good drivers

CompanyAverage Annual Rate
State Farm$1,169
USAA$875
National Average$1,321
USAA vs. State Farm: Auto insurance rates for good drivers

It is good to drive safely, and it shows in the amount you will pay for insurance. If your driving record is clean, USAA offers the cheapest rate among all the top insurers in the United States. You will definitely pay more if you insure your car with USAA, but their rate is below the national average.

USAA is cheaper than State Farm for drivers with a speeding ticket

CompanyAverage Annual Rate
State Farm$1,299
USAA$1,049
National Average$1,604
USAA vs. State Farm: Vehicle insurance rates for speeding ticket

Having a speeding ticket can really impact your insurance policy. People with speeding violations tend to pay more on their policy because insurance companies see them as high-risk.

If your driving record contains a speeding violation, USAA has the lowest premium rate among the top-rated car insurance companies, including State Farm. Therefore, if you missed out on USAA due to their strict requirements, I recommend that you try State Farm.

USAA is Cheaper than State Farm for after an Accident

CompanyAverage Annual Rate
State Farm$1,405
USAA$1,220
National Average$1,872
USAA vs. State Farm: Car insurance rates after an accident

USAA outshines State Farm with a lower insurance rate for individuals with an accident on their driving record. I noticed that people with speeding tickets pay more money on State Farm than people with accident histories on USAA.

State Farm is cheaper than USAA for after a DUI

CompanyAverage Annual Rate
State Farm$1,568
USAA$1,661
National Average$2,112
USAA vs. State Farm: Auto insurance rates after a DUI

Contrary to the usual trend, State Farm is cheaper than USAA when it comes to insuring drivers with a record of DUI. Although State Farm is cheaper, the rates for the two insurers in this demographic are below the national average rate.

USAA Is cheaper than State Farm for high coverage

CompanyAverage Annual Rate
State Farm$1,256
USAA$931
National Average$1,397
USAA vs. State Farm: Car insurance rates for high coverage

USAA is cheaper in this category. Their rate for high-coverage policies is lesser than State Farm. If you are not eligible for USAA, you can consider State Farm since their rate for the high coverage demographic is below than that of national average.

USAA is cheaper than State Farm for minimum coverage

CompanyAverage Annual Rate
State Farm$1,086
USAA$823
National Average$1,248
USAA vs. State Farm: Auto insurance rates for minimum coverage

You can save money on your insurance by buying the minimum coverage requirements for your state, but this strategy might not work for everyone. Therefore, if you are shopping for the minimum coverage policy, USAA has the best rate. Although USAA is cheaper than State Farm in this category, their rates are below the industry rate.

USAA vs. State Farm Auto Insurance: Comparing Discounts

USAA offers various auto insurance discounts, including safe driver, multi-policy, good student, military installation, annual mileage, family discount, and vehicle storage discounts. 

On the other hand, some common auto insurance discounts offered by State Farm include safe driver, good student, multi-car, anti-theft, defensive driving course, accident-free, and bundling discounts.

Both State Farm and USAA offer similar car insurance discounts. However, from the discounts offered by the two insurers, you will notice that USAA has mainly discounts related to military personnel and their families.

But hey, since discounts can be different based on your location, getting a quote is usually the way to go to figure out which discounts you qualify for.

To explain using our respondents, around 63% of individuals surveyed were totally happy with the auto insurance discounts from USAA. Now, State Farm didn’t quite hit the mark; their score was much lower. Only 41% of the State Farm policyholders were satisfied with the discounts.

Type of DiscountState FarmUSAA
Customer LoyaltyYesYes
Good studentYesYes
Storage/Student that awayYesYes
BundlingYesYes
Multi-carYesYes
Good DriverYesYes
Defensive Driving CourseYesYes
EmployerNoNo
TeacherNoNo
MilitaryNoYes
New CarYesYes
Low MileageYesYes
Online BillingNoNo
Auto-payNoYes
Tracking DeviceYesYes
USAA vs. State Farm auto insurance discounts

Types of Car Insurance Offered by both USAA and State Farm

Inasmuch as USAA and State Farm are available in your location, then you will always find a coverage, even for the minimum requirements in your state.

However, both USAA and State Farm typically offer similar types of car insurance coverage, including:

  • Liability coverage
  • Collision coverage
  • Comprehensive coverage
  • Uninsured/Underinsured motorist coverage
  • Personal Injury Protection (PIP) or Medical Payments coverage
  • Rental reimbursement coverage
  • Roadside assistance

Can I buy USAA and State Farm Car Insurance Online?

Yes, both State Farm and USAA generally offer the option to purchase car insurance online through their respective websites. However, it’s recommended to visit their official websites or contact their customer service for the most accurate and up-to-date information on the purchasing process.

Conclusion: USAA vs. State Farm Auto Insurance

A customer considering USAA may appreciate its military focus, excellent customer service, and competitive rates for military members. State Farm, on the other hand, offers a wide range of coverage options. They also have several local agents across the United States and various discounts to help you save money on your policy.

The choice of buying between State Farm and USAA auto insurance depends on individual preferences, military affiliation, and coverage needs.

If you’re eligible for USAA and have a good driving record, they’re likely the better option. If you’re not eligible for USAA or have a less-than-perfect driving record, State Farm is a good alternative. Consider getting quotes from both companies to compare rates and coverage options.

Secure your peace of mind on the road – choose reliability, choose safety. Purchase your auto insurance today and drive with confidence.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *