USAA vs. State Farm

State Farm and USAA were both included in our list of the best overall car insurance providers for 2025. State Farm won the best overall for price and coverage, while USAA earned the spot of the best insurer for members of the military. If you’re eligible for USAA, it’s likely your best option, due to their low average rates and high customer service ratings. But it’s important to always compare rates from multiple companies to make sure you’re getting the best deal and the coverage you need.

USAA vs. State Farm: Pros and Cons of Each

USAA Is Better For:

• Most military drivers, due to their low average rates and military-specific resources
• Drivers who may benefit from accident forgiveness
• Those who prioritize customer service

State Farm Is Better For:

• Those who would prefer not to have to apply for membership
• Nonmilitary-affiliated drivers

USAA’s average rates beat State Farm’s in every category we looked at, including for different age groups (though they almost tied for 25-year-old drivers) and high-risk drivers. State Farm offers rates lower than the national average in many cases, but military drivers will still likely fare better with USAA in terms of cost.

It’s important to note that these rates are averages and that your quotes might differ. Always evaluate several quotes from different insurance companies before purchasing a policy.

Both USAA and State Farm offer basic auto coverage options such as liability, comprehensive, and collision, medical payments, personal injury protection, and uninsured/underinsured motorist.

You can also add other coverages to your policy depending on your needs, but the options vary by company:

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

**Vehicle loans from State Farm Bank include Payoff Protector coverage, which is similar.

Add-on coverage options also vary by state, so double-check if the coverage you need is available where you live by checking your quote or speaking to an agent.

Auto insurance discounts are a great way to save money on your policy and are offered by all major insurers, including USAA and State Farm. However, the specific discounts available vary both by insurer and by state, so be aware of what you might be eligible for.

Both companies have common discounts, such as bundling. But only State Farm has a safety feature discount, and only USAA has a new vehicle discount.

You can see the only main discounts offered by both providers in the table below:

Based on various industry studies, State Farm scores very well compared to other major insurers when it comes to customer service, but USAA still outranks it most of the time. In fact, USAA consistently has one of the highest scores in J.D. Power’s studies, but it’s not officially ranked because it “does not meet study award criteria,” likely because of its exclusive membership. Here’s how the two companies stack up in several customer experience areas:

Claims Satisfaction

USAA scored 726 out of 1,000 in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, well above the average of 697.³ State Farm also scored above average with a score of 710 but falls slightly below USAA.

However, State Farm narrowly beat USAA in the 2024 CRASH Network Report Card, which tracks auto shops’ experiences dealing with insurers. The report gave USAA a D+ grade and State Farm a C-. It’s worth noting, however, that none of the 10 largest insurers scored higher than a C+.⁴

Customer Service

USAA scored significantly higher than State Farm in every region covered in J.D. Power’s 2024 U.S. Auto Insurance Study, which tracks overall customer satisfaction with insurers. As mentioned earlier, USAA isn’t technically ranked among the other insurers, but their scores are clearly well above average and above most other companies’ scores.

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

State Farm wins when looking at the complaint indices from the National Association of Insurance Commissioners (NAIC), which tracks customer complaints against insurers. State Farm had a complaint index of 1.96 as of 2023,⁵ while USAA’s was 2.78.⁶ However, both companies receive more complaints than average; 1 is considered the benchmark number of expected complaints for a company in the market.

Shopping

When it comes to the process of shopping for and buying an auto insurance policy, J.D. Power’s 2024 U.S. Insurance Shopping Study indicates that customers are more satisfied overall with USAA. This may be largely due to the fact that State Farm does not let you purchase a policy online. Customers can request a quote online, but the purchasing process must be completed on the phone with a State Farm agent.

USAA and State Farm policyholders can take advantage of the companies’ robust online platforms and mobile apps to manage their policies, file claims, get roadside assistance, and more. Here’s a breakdown of each app:

The results of J.D. Power’s 2024 U.S. Insurance Digital Experience Study once again favored USAA, which received a score of 743 out of 1,000 in the service category and 544 out of 1,000 in the shopping category. State Farm, on the other hand, received scores of 703 and 513 in the service and shopping categories, respectively.⁸

USAA and State Farm are solid options if you’re looking for auto insurance coverage, but keep in mind that USAA requires membership and is only available to the military community. If you are eligible for USAA, you will likely get better rates and have a better experience than with State Farm. Regardless, it’s a good idea to get quotes from multiple companies and evaluate the factors that are most important to you before making an insurance decision.

If you’re interested in signing up for a telematics program to save money on your premium, keep in mind that State Farm will not increase rates due to unsafe driving, but you do risk having your rates go up with USAA if it detects unsafe driving habits. While this might not necessarily be a dealbreaker, it’s important to consider as you weigh your options.

Similarly, if you’re prone to accidents and would like to take advantage of accident forgiveness coverage, which prevents rate increases after your first at-fault accident, you’ll want to consider USAA over State Farm. Accident forgiveness is also useful if you have an inexperienced driver (like a teenager) on your policy. As always, discount and coverage availability vary by state, so confirm whether the coverages you want are available where you live when comparing companies.

Overall, USAA may be hard to beat in terms of rates and customer service experience if you are eligible for their products. But with State Farm, you won’t have to deal with the inconvenience of applying for membership — although you will need to get a quote and purchase a policy by phone rather than on the website.

At AutoInsurance.com, we evaluate auto insurers using four primary criteria:

• Price (40% weight): We assess average premiums for full and minimum coverage based on a standard driving profile featuring good credit and a clean record. Additionally, we review rates for various other profiles, including drivers with violations or poor credit, and factor in available discounts. Our full coverage analysis incorporates the following limits:
  • Bodily injury liability: $100,000 per person/$300,000 per accident
  • Property damage liability: $50,000 per accident
  • Uninsured/underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
  • Comprehensive and collision coverage: $500 deductible
• Claims Handling (25% weight): A strong claims process is quick, transparent, and efficient, emphasizing clear communication, fair assessments, and prompt resolution. We analyze claims practices using resources like the CRASH Network Insurer Report Card, J.D. Power Claims Satisfaction Report, and financial-strength ratings from AM Best and S&P Global Ratings. When possible, we also incorporate feedback from actual customer experiences.
• Customer Experience (25% weight): We examine how easy it is to navigate the entire customer journey, from obtaining a quote and buying a policy to managing coverage and accessing documents. We evaluate online tools, agent interactions, website functionality, and mobile app usability, drawing insights from sources such as J.D. Power studies, the NAIC complaint index, BBB ratings, and app reviews.
• Coverage Options (10% weight): Beyond state minimum requirements, we prioritize insurers offering enhanced coverage choices like accident forgiveness, gap insurance, rideshare protection, and more.

Read more about our ratings and methodology.