USAA vs. GEICO

In our most recent ranking of the best overall car insurance providers, USAA was named the best insurer for the military while GEICO was the cheapest widely available insurer. If you’re eligible for USAA, it will likely offer you the lowest rates, but it’s always worth getting quotes from multiple companies.

USAA vs. GEICO: Pros and Cons of Each

USAA Is Better For:

• Most military drivers thanks to its low average rates
• Drivers with a financed or leased vehicle
• Those who prioritize customer service

GEICO Is Better For:

• Those who would prefer not to go through a membership process
• Drivers with low credit

USAA wins against GEICO when it comes to cost, offering lower average rates almost across the board for various driver profiles. GEICO’s average rate is slightly lower for drivers with low credit. However, most eligible military drivers will likely find lower rates with USAA.

As with all average rates, keep in mind that your quoted rate might differ, so plan to get quotes from multiple companies before making a decision.

Drivers will find standard coverage options from both USAA and GEICO, including liability, comprehensive and collision, medical payments, personal injury protection and uninsured/underinsured motorists.

Both companies also offer optional add-on coverage options that can choose to add to your policy:

*USAA offers car replacement assistance, which pays out 20 percent more than your car’s actual cash value if it’s totaled or stolen. You can use this to pay off your loan or put it toward a new vehicle.

Coverage options vary by state, so always confirm what’s available in your area by checking your quote or reaching out to your agent.

Additionally, if you’re a homeowner looking to bundle auto and home insurance, USAA is likely the better choice as it underwrites its own home policies. In contrast, GEICO relies on third-party insurers for home insurance.

USAA and GEICO offer many auto insurance discounts that eligible policyholders can take advantage of. These include common discounts like bundling and telematics discounts, which are discussed in more detail below.

However, certain discounts are only offered by one company or the other. Discounts are not the be-all-end-all when it comes to your premium, but being eligible for more discounts from a certain company may mean you get the lowest rate from that company.

The table below provides a full list of the main discounts that both companies offer. Remember that available discounts vary by state, so always confirm what’s available where you live.

Overall, customers are more satisfied with USAA’s customer service than with GEICO’s based on various industry studies and data. Here’s how the companies compare in various customer experience areas:

Claims Satisfaction

In the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, USAA scored 726 out of 1,000, well above the average of 697.² The company is not technically ranked with the other insurers because it “does not meet study award criteria,” likely because of its exclusive membership. Meanwhile, GEICO tails behind with a score of 692 out of 1,000, putting it in 16th place.

USAA ranked slightly lower than GEICO in the 2024 CRASH Network Report Card, which tracks auto shops’ experiences dealing with insurers. USAA received a D+ grade, compared to GEICO’s C-. However, neither score is particularly high. It’s worth noting that none of the 10 largest insurers scored higher than a C+.³

Customer Service

In J.D. Power’s 2024 U.S. Auto Insurance Study, which tracks overall customer satisfaction with insurers, USAA scored significantly higher than GEICO in every region. Again, it can’t technically be ranked, but its scores are well above average, which would put it in the top companies when compared to competitors’ scores.

Here is a breakdown of each company’s score (out of 1,000) by region:

Based on complaint indices from the National Association of Insurance Commissioners (NAIC), which tracks customer complaints against insurers, both companies receive more complaints than average, but GEICO wins in this area. As of 2023, it had a complaint index of 1.83,⁴ while USAA’s was 2.78.⁵ An index of 1 is considered the expected amount of complaints for a company in the market.

Shopping

Customers tend to be more satisfied with USAA’s process when it comes to shopping for and purchasing a policy, according to J.D. Power’s 2024 U.S. Insurance Shopping Study. Both companies allow customers to get quotes and purchase policies online or by phone.

The J.D. Power study evaluates factors beyond the quote process, including policy offerings, price and distribution channel, so this may indicate that customers are satisfied with aspects of USAA like its cost and availability of agents.

USAA and GEICO both have robust online platforms and mobile apps through which policyholders can file claims, access policy information, get roadside assistance and more. Here’s a breakdown of each app:

J.D. Power’s 2024 U.S. Insurance Digital Experience Study indicates that customers are most satisfied overall with USAA’s digital tools over GEICO’s. It received an above-average score of 743 out of 1,000 in the service category, while GEICO received a score of 668, which is below the segment average.⁶

In the shopping category, both scored above average, but USAA still came out ahead with a score of 544 out of 1,000 compared to GEICO’s 519.

USAA and GEICO are both great options for auto insurance coverage as long as you’re eligible for USAA’s military-exclusive membership. Members of the military can also get special discounts from GEICO, but USAA may still end up offering a lower rate. It’s always wise to get quotes from multiple companies before purchasing a policy.

USAA’s products and services are specifically designed for the military community, so this is another important intangible benefit to consider beyond just the cost and coverage options. For example, it offers support and resources that members may find beneficial and are not available from standard insurers like GEICO.

Both companies have great financial strength ratings from AM Best as well as high ratings from the BBB, so you can rest assured that they are trustworthy and able to pay out claims. They also both have usage-based telematics programs that offer significant savings if you drive safely.

However, USAA beats GEICO in most customer service metrics, sometimes rather significantly. Given this, as well as its lower average premiums for most drivers, most military members will likely do better with USAA as long as they don’t mind the membership process.

At AutoInsurance.com, we use four key factors to evaluate auto insurers:

• Price (40%): We analyze average premiums for both full and minimum coverage for a standard driving profile of a good driver with good credit. We also looked at rates for other driver profiles, including those with violations or low credit. We also consider available discounts. Full coverage averages use the following limits:
  • Bodily injury liability: $100,000 per person/$300,000 per accident
  • Property damage liability: $50,000 per accident
  • Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
  • Comprehensive and collision: $500 deductible
• Claims handling (25%): An auto insurer’s claims handling process should be quick, transparent and efficient, with clear communication, fair evaluation of damages and timely payment or resolution. We assess claims practices using sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report and financial strength from sources like AM Best and S&P Ratings. We also include real-life customer experiences when possible.
• Customer experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings and app store reviews.
• Coverage options (10%): We review each company’s coverage offerings and prioritize providers with options beyond the state-required minimums, such as accident forgiveness, gap coverage, rideshare coverage and more.

Read more about our ratings and methodology.