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State Farm and USAA are two of the nation's most recognized car insurance firms, ranked by market share as the first and fifth largest car insurers, respectively. With so many insurance options out there, we have made it easy to compare and contrast these two companies with our one-on-one analysis. For affordability, customer service, covers, and discounts, we have compared USAA and State Farm.

However, shoppers should remember that USAA is only open to active and retired service members and their families, so if you qualify, you will only be able to purchase a policy from USAA.

USAA vs State Farm: Cheaper policies?

When we looked at the nation's largest car insurance providers, we found that USAA was at the top with the lowest rates in our report. Driver profiles paid an average auto insurance representative premium of $895 with USAA. A few positions further down the list were State Farm, with an average study rate of $1260. That was inexpensive enough to put State Farm in fourth place. For both State Farm and USAA, the overall averages are lower than the national average rate of $1323 in our analysis.

On average, USAA, especially for young drivers, provides far cheaper car insurance policies than State Farm. In reality, according to our research, USAA ranks as the country's most affordable major insurance firm. So, generally speaking, it's cheaper than almost any major insurance firm, not just State Farm.

The average study rate at USAA for 25-year-old male driver profiles is $1094. It's $1469 from State Farm. USAA is around 25 percent cheaper. For drivers who are of the age of 35 and above, the rates go down. With USAA and $1205 with State Farm, male driver profiles of this age pay an average study rate of $818. That is a more than 30 percent difference. The lowest representative rates of any age group in our sample are paid for by sixty-year-old driver profiles. With USAA, the average research rate for male profiles of this age is $767. At State Farm, it's $1098, which is again about 30 percent higher than the study average for USAA.

The average study rate with USAA for 25-year-old female driver profiles is $1038, and with State Farm, it's $1330. These tariffs are just about 300 dollars apart. For female profiles between 35 and 60 years of age, these two firms' average representative auto insurance rates are very similar to male profiles of the same period. For the 35-year-old female profile, USAA's average study rate is $823, falling to $768 at age 60. State Farm car insurance's average study rates are the same for male and female profiles in both age groups, at $1205 for 35-year-olds and $1098 for 60-year-olds.

Many Americans travel 12,000 miles a year or so. For driver profiles of 12,000 miles on the odometer per year, USAA has the lowest auto insurance research rates, at an average of $885. The average study rate for this annual mileage by State Farm is $1234, around $350 more.

You will still pay almost the same rates as those that drive more if you go half as much, 6,000 miles a year. At State Farm, the average study cost for a driver profile with this mileage for auto insurance is $1114. It's $829 at USAA. For each of these insurers, that's around a 10 percent drop, and those are more significant discounts than many other insurers give for driving less.

USAA was the cheapest insurer by an average of 25 percent across all driver categories. Those finding the best rates are often advised to compare insurance premiums from three providers (at least) using similar coverage levels.

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USAA vs State Farm: Driver with a clean driving record

In general, safer drivers are rewarded with lower fares. And our driver is old enough at the age of 30 that he won't be quoted at any of the high premiums that drivers are in their teens and early 20s. Getting a clean record goes a long way towards a low insurance premium for vehicles. With State Farm and $885 with USAA, the average study cost for a profile with a strong driving background is $1234. That is a gap of about $350, but for driver profiles with clean records, these are smaller than the national average study cost of $1416.

USAA vs State Farm: Driver with an accident history

In general, drivers who have been involved in an accident are paid a higher premium by insurers. USAA and State Farm are no exception, charging 35 percent and 19 percent more per year respectively for our sample driver. Although USAA is still cheaper on average for our sample driver, it raised rates by $459 per year, while State Farm raised rates by only $338 per year. The numerous formulas used by insurers to change premiums are just another justification for many responsible insurers to shop around.

Your insurance premium will almost certainly rise if you have an accident on your record. The average research rate for our driver profiles after a single accident at State Farm is $1487. At USAA, $1229 is the average representative cost. These are the two lowest prices for this profile in our report, with State Farm's average cost being just around $250 higher than USAA's.

USAA vs State Farm: Young drivers

Auto insurance providers judge younger and less-seasoned drivers to be higher risk policyholders. Though our 18-year-old driver sample would pay far more than its 30-year-old equivalent, he gets a simple discount going over State Farm with USAA. A USAA scheme costs 36 percent less than an identical strategy with State Farm at $3254 per year.

USAA vs State Farm: Customer satisfaction

Customers of USAA rank among the country's most pleased and a tier above State Farm. Customer loyalty to USAA has been generated through a good customer service experience. If customer service is your top priority and decides between State Farm and USAA, our survey indicates that USAA is your best choice.

USAA vs State Farm: Standout features

USAA and State Farm give all the regular covers and discounts offered by most auto insurance firms. Below, we have chosen to illustrate some of these insurers' distinctive characteristics that may stand out for specific customer types. Finally, for both USAA and State Farm, we also list the availability of regular covers and discounts so that you know whether you can find the functionality you want with auto insurance.

USAA has two remaining discounts: truck storage and military installation for active military members. While not unique in the industry, its accident forgiveness coverage separates it from State Farm, which does not have accident forgiveness.

State Farm has a Drive Safe and Save discount, which rewards you for safe driving activities using your mobile. Rideshare drivers may be interested in the firm's rideshare insurance, our option for its standout feature of coverage.

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Standard coverages from USAA and State Farm

Drivers have come to expect a regular amount of coverage available from their insurer anywhere you purchase auto insurance. As two of the country's largest insurers, USAA and State Farm offer all the basic coverage that you will generally find in an auto insurance policy, including:

Standard discounts from USAA and State Farm

You've already noticed that many offer similar forms of discounts if you've shopped with insurance providers before, which reward policyholders for driving responsibly, getting better vehicles, and buying multiple insurance policies. Discounts offered by both State Farm and USAA are given below.

This list is not exhaustive, as discounts available will vary based on where you live. Often speak to your insurance provider about what incentives you may apply for and take advantage of all of them if you buy a policy, whether you shop with USAA or State Farm.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

Frequently Asked Questions

Is USAA insurance cheaper than State Farm?

Compared to State Farm USAA, it is about 25 percent cheaper.

Which is better USAA or State Farm?

For drivers with credit scores of lower than 580, USAA provides better rates than State Farm. Drivers with exceptional credit can lean towards USAA, which usually beats State Farm by $420 a year.

Is USAA insurance really cheaper?

USAA is a top choice when it comes to pricing. USAA is the cheapest national companies with an estimated total study cost of $885 for automobile insurance.

Where does USAA rank in insurance?

USAA is one of the United States' most successful insurance firms, but they have its pros and cons.

Why is State Farm so cheap?

State Farm is cheap as its outstanding reputation for customer service and helps with claims gives them more clients than any other supplier. State Farm rewards client loyalty with incentives for insuring or bundling various plans, such as home and vehicle, with more than one car.

Can I get USAA without being in the military?

USAA membership is typically available to serving, retired, and separated veterans of an "honorable" discharge form from the U.S. military and their qualifying family members. For those associated with the military, USAA is a safe option for insurance for homeowners. At low monthly rates nationally, the firm offers extensive coverage. It has fewer endorsements and discounts than many of its rivals, but it is worth it due to its low prices.

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