USAA vs. State Farm: Which Has Cheaper Car Insurance?
USAA has cheaper rates than State Farm but is only available to drivers with military connections.
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- USAA is a better choice if you're an active-duty military member, veteran, or the spouse or child of a USAA member. Full coverage from USAA costs $125 per month, on average. Plus, USAA has good coverage and discounts along with excellent service.
- If you can't get USAA, State Farm is still a good company. Its rates are still cheap, at an average of $192 per month for full coverage, and it has good quality coverage and typically good service.
Best for | USAA | State Farm |
|---|---|---|
| Price |
Yes
| |
| Discounts |
Yes
|
Yes
|
| Coverage |
Yes
| |
| Customer service |
Yes
| |
| Availability |
Yes
| |
| ValuePenguin rating | 4.5/5
Star Fill
| 4/5
Star Fill
|
| Full review | USAA review | State Farm review |
Is USAA insurance cheaper than State Farm?
USAA sells cheaper car insurance than State Farm, at an average rate of $125 per month for full coverage.
Cheapest overall: USAA
USAA has cheaper average rates than State Farm.
- Full coverage costs an average of $125 per month from USAA compared to $192 per month from State Farm.
- Minimum coverage from USAA costs $41 per month, on average. The same coverage from State Farm costs an average of $73 per month.
- If you can't get USAA because you aren't affiliated with the military, State Farm is still a good choice because it's cheaper than average.
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USAA vs. State Farm average car insurance rates
Policy type | USAA | State Farm |
|---|---|---|
| Minimum coverage | $41 | $73 |
| Full coverage | $125 | $192 |
Rates are monthly.
Cheapest for drivers with bad records: USAA
USAA is a cheap choice for drivers with accidents, tickets or a DUI.
- On average, USAA charges $57 less per month for drivers with a ticket and $44 less per month for drivers with an accident compared to State Farm.
- USAA is also a cheap choice if you have a DUI. State Farm's average rates for drivers with a DUI are expensive.
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State Farm vs. USAA for drivers with bad records
Incident | USAA | State Farm |
|---|---|---|
| Speeding ticket | $153 | $210 |
| Accident | $174 | $218 |
| DUI | $248 | $469 |
Rates are monthly and for full coverage.
Cheapest for young drivers: USAA
USAA has cheaper rates than State Farm for young drivers.
- On average, full coverage for an 18-year-old costs $310 per month from USAA. That's $244 per month cheaper than State Farm's average rate.
- USAA has cheap rates for 18-year-olds who want minimum coverage, too, at an average $112 per month. State Farm charges $233 per month, on average, for minimum coverage.
- USAA also has cheap minimum coverage rates for young drivers who have poor driving records, such as a ticket or at-fault accident.
USAA vs. State Farm car insurance rates for young drivers
USAA | State Farm | |
|---|---|---|
| Minimum coverage | $112 | $233 |
| Speeding ticket | $163 | $258 |
| Accident | $180 | $265 |
| Full coverage | $310 | $554 |
Rates are monthly for an 18-year-old driver. Speeding ticket and accident rates are minimum coverage. Full coverage rates include higher liability coverage than required by state law.
State Farm vs. USAA car insurance rates by state
USAA has cheaper rates than State Farm in every state where rates are available.
USAA has cheaper average car insurance rates in all 43 states and Washington, D.C. where rate data was available from both insurance companies.
The biggest price difference between USAA and State Farm is in Utah, where State Farm costs an average of $246 more per month than USAA. Rates are most similar in South Dakota, with just a $1 monthly difference between the two companies.
State | USAA | State Farm |
|---|---|---|
| Alabama | $119 | $156 |
| Alaska | $116 | $179 |
| Arizona | $165 | $203 |
| Arkansas | $112 | $167 |
| California | $159 | $287 |
| Colorado | $172 | $236 |
| Connecticut | $150 | $256 |
| Delaware | $197 | $212 |
| Florida | - | $215 |
| Georgia | $148 | $285 |
| Hawaii | $112 | $161 |
| Idaho | - | $85 |
| Illinois | $165 | $181 |
| Indiana | $82 | $169 |
| Iowa | $123 | $129 |
| Kansas | $101 | $183 |
| Kentucky | $144 | $184 |
| Louisiana | $210 | $319 |
| Maine | $75 | $155 |
| Maryland | $103 | $180 |
| Massachusetts | $144 | - |
| Michigan | $146 | $353 |
| Minnesota | $118 | $162 |
| Mississippi | $109 | $142 |
| Missouri | $98 | $200 |
| Montana | $103 | $120 |
| Nebraska | $126 | $177 |
| Nevada | $149 | $286 |
| New Hampshire | $103 | $142 |
| New Jersey | - | $292 |
| New Mexico | $88 | $176 |
| New York | $162 | $274 |
| North Carolina | - | $89 |
| North Dakota | $109 | $124 |
| Ohio | $84 | - |
| Oklahoma | $119 | $186 |
| Oregon | $115 | $123 |
| Pennsylvania | $171 | $184 |
| Rhode Island | $124 | - |
| South Carolina | $113 | $218 |
| South Dakota | $154 | $155 |
| Tennessee | $99 | $199 |
| Texas | $124 | $140 |
| Utah | $119 | $365 |
| Vermont | $84 | $92 |
| Virginia | $106 | $176 |
| Washington | $133 | $169 |
| Washington, D.C. | $123 | $282 |
| West Virginia | $112 | $172 |
| Wisconsin | $104 | $177 |
| Wyoming | $94 | $112 |
USAA vs. State Farm car insurance discounts
USAA and State Farm offer similar car insurance discounts.
Discount | USAA | State Farm |
|---|---|---|
| Multi-policy |
Yes
|
Yes
|
| Multi-car |
Yes
|
Yes
|
| Accident-free |
Yes
|
Yes
|
| Driving behavior discount |
Yes
|
Yes
|
| Good student |
Yes
|
Yes
|
| Usage-based discount |
Yes
| |
| Defensive driving |
Yes
|
Yes
|
| Driver training |
Yes
|
Yes
|
| Student away at school |
Yes
| |
| Young driver safety program |
Yes
| |
| Anti-theft |
Yes
|
Yes
|
| Vehicle safety |
Yes
| |
| Passive restraint |
Yes
| |
| New vehicle |
Yes
| |
| Deployment storage |
Yes
| |
| Family legacy |
Yes
|
Discount names vary between companies.
Discounts often depend on where you live. Whether you shop with USAA or State Farm, always talk to your insurance agent about what discounts you could qualify for, and take advantage of them all.
USAA discounts
USAA advertises 12 discounts, including four you can't get with State Farm.
- If you don't drive often, you can sign up for USAA SafePilot Miles, which lets you pay a personalized lower rate each month based on the number of miles you drive.
- You might save on USAA car insurance if your vehicle is less than 3 years old.
- If you're deployed and store your car on a military base, you could save up to 15% on your comprehensive coverage.
- If your parents also have USAA, you might save 10% on your policy because of the MyUSAA Legacy Discount.
State Farm discounts
State Farm also advertises 12 discounts, four of which are not available from USAA. Two are specifically geared toward young drivers and two are related to your car's safety features.
- If you insure a student who goes to school away from home and doesn't take a car, you can get a discount.
- Drivers under age 25 can sign up for the Steer Clear discount program, which includes videos, lessons and quizzes as well as practice driving trips.
- State Farm gives a discount for cars that have certain safety features, including driver assist technology like forward collision warning and automatic braking.
- Cars with air bags and passive restraint devices (such as automatic seatbelts) are also eligible for a State Farm discount.
USAA vs. State Farm car insurance coverage options
As two of the biggest insurance companies in the country, USAA and State Farm offer all the basic coverages you'd typically see in an auto insurance policy. Both also have a number of common coverage add-ons, such as roadside assistance, rental car reimbursement and rideshare insurance.
Coverage | USAA | State Farm |
|---|---|---|
| Roadside assistance |
Yes
|
Yes
|
| Rental reimbursement |
Yes
|
Yes
|
| Rideshare insurance |
Yes
|
Yes
|
| Accident forgiveness |
Yes
| |
| Car replacement assistance |
Yes
| |
| Nonowners insurance |
Yes
| |
| Bodily injury liability |
Yes
|
Yes
|
| Property damage liability |
Yes
|
Yes
|
| Uninsured and underinsured motorist coverage |
Yes
|
Yes
|
| Comprehensive and collision insurance |
Yes
|
Yes
|
| Personal injury protection |
Yes
|
Yes
|
| Medical payments |
Yes
|
Yes
|
Coverage names vary by company.
USAA auto insurance features
USAA has a few coverage options that State Farm doesn't, including car replacement coverage. This coverage helps replace your car after a total loss by paying an extra 20% over than the actual cash value of your vehicle. This is unusual, because it's not limited to new cars. Drivers can add the coverage to any vehicle that has comprehensive and collision coverage.
USAA also offers accident forgiveness coverage in most states. If you have this coverage and cause an accident, your rates won't go up.
State Farm auto insurance features
State Farm only offers one type of coverage not available from USAA: nonowners insurance. This protects drivers who don't own a vehicle but often drive a borrowed car and drivers without a vehicle who need to file an SR-22.
State Farm's rideshare coverage for drivers who work for a company like Uber or Lyft is more comprehensive than USAA's.
With State Farm rideshare insurance, you'll be covered:
- When your rideshare app is on and you're available to pick up customers
- When you're matched with a customer who needs a ride
- While you're transporting a customer
Once you pick up a passenger, the rideshare company (Uber or Lyft) covers your liability if the passenger is hurt in an accident. But State Farm covers your car and pays a limited amount for injuries even after you've picked up a passenger.
In comparison, USAA offers rideshare gap protection, which only covers you when your app is on and you're waiting to pick up a passenger. As soon as someone gets in your car, USAA's coverage ends and you're only covered by your rideshare company's policy.
USAA vs. State Farm availability
USAA sells car insurance in every state and Washington, D.C.
State Farm is also widely available, but it doesn't currently offer new car insurance policies in Massachusetts or Rhode Island. However, the company will start selling policies in Massachusetts again in 2027.
But car insurance from USAA is not available to all drivers.
To purchase a USAA policy, you have to be an active-duty military member, a veteran or a family member of a policyholder.
For that reason, State Farm auto insurance is more widely available for drivers than USAA.
USAA vs. State Farm customer service
Both State Farm and USAA have an excellent customer experience, but USAA gets slightly higher scores from industry reviewers.
If excellent customer service is a priority for you and you're associated with the military, choose USAA. But if you can't get USAA, State Farm is still a great option for good service.
Industry reviewer | USAA | State Farm |
|---|---|---|
| ValuePenguin rating | 4.5/5
Star Fill
| 4/5
Star Fill
|
| J.D. Power overall satisfaction | 724 | 655 |
| J.D. Power claims satisfaction | 741 | 716 |
| NAIC complaint index | 1.00 | 0.59 |
| AM Best financial strength rating | A++ | A+ |
Frequently asked questions
Is USAA cheaper than State Farm?
On average, USAA has cheaper car insurance rates than State Farm. Full coverage from USAA costs an average of $125 per month from USAA compared to an average of $192 per month from State Farm. Minimum coverage from USAA is $41 per month, on average, while State Farm charges an average of $73 per month for minimum coverage.
Is USAA better than State Farm?
USAA has cheaper rates than State Farm and excellent customer service, but it isn't necessarily better. If you're associated with the military, USAA is probably a great choice. But most people can't get USAA, and that makes State Farm the better option.
Does State Farm have military discounts?
State Farm does not have a military discount except in Louisiana, where state law requires that car insurance companies give a discount to active-duty military, reservists and National Guard members based in the state.
Methodology
To compare rates for USAA and State Farm, ValuePenguin gathered quotes from all 50 states and Washington, D.C. Rates are for a 30-year-old or 18-year-old single man with a good credit score who owns a 2018 Honda Civic EX and doesn't have any accident or tickets on his record, unless otherwise noted.
State minimum coverage is for the minimum required coverage limits in each state. Full coverage quotes include higher liability limits, along with collision and comprehensive coverage.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision deductibles: $500
All rate data comes from Quadrant Information Services, which gets its data from publicly sourced from insurance company filings. Quotes on this page should be used for comparative purposes only. Your own quotes may be different.
About the Author
Senior Writer
Cate Deventer is a Senior Writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
