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State Farm is one of the largest car insurance companies in the country. USAA isn't quite as large, but it's growing. If you’re shopping for car insurance and have a connection to the military (more on that later), USAA and State Farm should definitely be on your list.

We’re going to compare State Farm and USAA so you can decide which company is right for you and your situation. As you’ll see, different insurance companies charge very different annual rates, even for the same driver. While USAA tends to be cheaper overall than State Farm and other companies, you need to be a member of the military, a veteran, or an eligible family member to qualify for USAA membership.

Also, keep in mind that car insurance isn’t all about cost. You want to find a company that will treat you right when you make a claim. We have information from real customers on how State Farm and USAA handle claims. Let’s take a look.

USAA and State Farm Car Insurance Rates

When we looked at the largest car insurance companies in the country, we found that USAA was at the top with the cheapest rates in our study. Driver profiles with USAA paid an average auto insurance representative rate of $895. State Farm was a few places further down the list, with an average study rate of $1,260. That was cheap enough to put State Farm in fourth place. The overall averages for both State Farm and USAA are lower than the national average rate in our study of $1,323.

This head-to-head comparison focuses primarily on car insurance rates, but we also looked at how satisfied car insurance customers are with their auto insurance company. For more information, check out our full ranking of the best car insurance companies, and find out what real customers say about USAA, State Farm, and their competitors.

 How We Did This Comparison

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our ranking in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Best Car Insurance Rankings. 

We surveyed 2,799 consumers who filed a car insurance claim in the last five years, asking questions about their car insurance company. These questions covered satisfaction with the ease of filing a claim, customer service, claim status communication, claim resolution, and overall value. We also asked whether they’d recommend the company and if they planned to renew their policy. We used their responses to build our Best Car Insurance Companies ranking and this head-to-head comparison.

Our Study Rates

To get comparative insurance rates for this study, U.S. News also worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the 10 largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford-F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. To get the state-wide study rates shown here, we computed the mean rate for male and female drivers ages 24, 35 and 60 who drive 15,000 miles per year, have medium coverage, good credit and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

USAA vs. State Farm: Pros & Cons

USAA

  • Best overall
  • Cheapest average annual rates
  • Need military connection to join

State Farm

  • Cheaper rates than most
  • Good option if you don’t qualify for USAA

USAA Auto Insurance Information

Customers with USAA auto insurance all have something in common: a connection to the military. To qualify for a USAA policy, you must be a member of the military, a veteran, or the spouse or child of a USAA member. It’s a select population, but it’s large enough to make USAA the fifth largest auto insurer in the country. It has a 5.7 percent share of the market, up a quarter of a point in 2017.

In our survey, people who used USAA auto insurance were quite happy with it. The company came in the with the highest overall score. Respondents were particularly pleased with how easy it was to file a claim and how the claim was resolved. More than nine in 10 respondents were likely to renew their insurance policy with USAA, and to recommend it to others.

Read more in our USAA Review »

State Farm Auto Insurance Information

State Farm holds the No. 1 spot as the largest auto insurer in the United States. It has 18.13 percent of the market, which is about 5.5 points ahead of second-place Geico.

State Farm did very well in our survey, coming in third place behind Travelers. Respondents were mostly happy with the ease of filing a claim with State Farm and with the company’s customer service. Only about 62 percent would recommend State Farm car insurance to others, but three in four would renew their policy with the company.

Read more in our State Farm Review »

USAA and State Farm Car Insurance: Which is Cheapest for Men?

For 25-year-old male driver profiles the average auto insurance study rate at USAA is $1,107. With State Farm, it's $1,501. USAA is cheaper by around $500. Representative rates go down for profiles at age 35. Male driver profiles of this age pay an average study rate of $831 with USAA and $1,237 with State Farm. That’s a difference of about $400.

Sixty-year-old driver profiles pay the lowest representative rates of any age group in our survey. The average study rate for male profiles of this age is $779 with USAA. It’s $1,125 at State Farm, which is about $355 higher than USAA’s study rate. 

Pattanaphong Khuankaew/EyeEm/Getty Images

To determine whether USAA or State Farm offers lower rates to male drivers, we created driver profiles for males in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for driving up to 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

Single 25-year-old male

Married 35-year-old male

Married 60-year-old male

USAA

$1,106.57

$830.63

$778.97

State Farm

$1,501.23

$1,237.06

$1,124.88

USAA and State Farm Car Insurance: Which is Cheapest for Women? 

The average study rate for 25-year-old female driver profiles with USAA is $1,039, and it’s $1,373 with State Farm. These rates are only about $330 apart.

For female profiles at ages 35 and 60, the average auto insurance representative rates from these two companies are very close to those for male profiles of the same ages. USAA’s average study rate for the 35-year-old female profile is $837, dropping to $779 at age 60. State Farm’s average car insurance study rates are identical for male and female profiles in these age groups, at $1,237 for 35-year-olds and $1,124 for 60-year-olds.

We used driver profiles in the ages of 25, 35, and 60 to find out if USAA or State Farm offers lower rates to female driver profiles. The profiles have a clean driving record, insurance coverage for driving up to 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

Single 25-year-old female

Married 35-year-old female

Married 60-year-old female

USAA

$1,039.43

$836.67

$779.02

State Farm

$1,373.10

$1,237.06

$1,124.88

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USAA and State Farm Car Insurance: Which is Cheapest for High Mileage? 

Many Americans drive about 12,000 miles a year. USAA has the cheapest auto insurance study rates for driver profiles with 12,000 miles on the odometer each year, at an average of $895. State Farm’s average study rate for this annual mileage is $1,260, which is about $370 more.

We created driver profiles with high annual mileage (12,000 per year) to compare car insurance rates through State Farm and USAA. The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

12,000 miles annually

USAA

$894.95

State Farm

$1,260.12

USAA and State Farm Car Insurance: Which is Cheapest for Low Mileage?

If you drive half as much – 6,000 miles a year – you usually don’t have to pay as much for car insurance. At State Farm, the average auto insurance study rate for a driver profile with this mileage is $7,138. At USAA, it’s $841. Those are bigger discounts than many other insurers offer for driving less.

We analyzed the different representative rates charged by USAA and State Farm to driver profiles with low mileage (only 6,000 per year).The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

6,000 miles annually

USAA

$841.48

State Farm

$1,137.50

USAA and State Farm Car Insurance: Which is Cheapest for Good Credit?

On average, drivers with good credit have some of the lowest car insurance rates. State Farm’s average study rate for the driver profile with good credit is $1,260, and it’s $881 with USAA. That’s a difference of only about $380.

Our study checked rates through USAA and State Farm using driver profiles with good credit. The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, and a clean driving record. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

Good Credit

USAA

$881.14

State Farm

$1,259.74

USAA and State Farm Car Insurance: Which is Cheapest for Bad Credit?

Drivers with poor credit pay higher car insurance rates than those with good credit. State Farm’s representative rate more than doubles for driver profiles with bad credit, to an average of $2,815. USAA’s average study rate for these driver profiles also doubles, to $1,826. That’s still lower than State Farm’s representative rate by about $1,000.

To verify that a bad credit can impact car insurance rates, we created driver profiles insured through State Farm and USAA with a poor credit score. The profiles were based on 25-, 35-, and 60-year-old males and females with 12,000 miles of driving per year, a clean driving history, and a medium level of insurance coverage. Vehicles used in the analysis are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

Poor Credit

USAA

$1,825.94

State Farm

$2,815.36

USAA and State Farm Car Insurance: Which is Cheapest for Good Drivers? 

Having a clean record goes a long way toward having a low car insurance rate. The average study rate for a profile with a good driving history is $1,260 with State Farm and $895 with USAA. That’s a difference of more than $350, but both are lower than the national average study rate of $1,323 for driver profiles with clean records.

Our study compared rates through USAA and State Farm to find out which insurer has better rates for driving profiles with a clean record. These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

Clean record

USAA

$894.95

State Farm

$1,260.12

USAA and State Farm Car Insurance: Which is Cheapest After a Speeding Ticket? 

Speed increases the chance of an accident, and insurance companies do not like accidents and the claims that come with them. A driver profile with a speeding ticket raises the average auto insurance study rate to $1,028 with USAA and $1,409 at State Farm. USAA is still about $380 cheaper. 

We tested our driving profiles to check rates following a speeding ticket. These driver profiles for males and females in each of the following ages: 25 years, 35 years, and 60 years. The profiles have 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

With 1 speeding violation

USAA

$1,027.98

State Farm

$1,408.71

USAA and State Farm Car Insurance: Which is Cheapest After an Accident?

Having an accident on your record will almost definitely raise your insurance rate. At State Farm, the average study rate for our driver profiles after a single accident is $1,502. At USAA, the average representative rate is $1,217. 

To compare the rates offered by USAA and State Farm to driving profiles with an accident on their driving history, we used male and female profiles in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for driving up to 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Company

With 1 accident

USAA

$1,216.68

State Farm

$1,501.96

USAA and State Farm Car Insurance: Which is Cheapest After a DUI?

There’s no easier way to quickly raise your auto insurance rate than to drive under the influence. A DUI conviction on our driver profile's record raises the average rate in our analysis at State Farm to $1,692 – about $430 more than its average study rate for driver profiles with a clean record. USAA raises the study rate for driver profiles with a DUI to an average of $1,711. USAA's representative rate doubled compared to its average for a driver profile with a clean record.

We analyzed car insurance rates for a driver profiles with a DUI. These profiles were males and females aged 25-, 35-, and 60-years old. They had a good credit score, a medium level of insurance coverage, and 12,000 miles of driving per year. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis.

Company

With 1 DUI

USAA

$1,710.92

State Farm

$1,692.09

Get Cheap Car Insurance Quotes in Your Area

Get great auto insurance coverage at an even better price.

The Best Car Insurance Companies

This head-to-head comparison looks mainly at cost. For more information, check out our full ranking of the Best Car Insurance Companies and learn about what real customers say about USAA, State Farm, and their competitors.

Our Car Insurance Ranking:

  1. USAA
  2. Travelers
  3. State Farm
  4. Geico
  5. Farmers
  6. Nationwide
  7. Progressive
  8. Allstate
  9. American Family

The Cheapest Car Insurance Companies

For more information, check out our full list of the cheapest car insurance companies.

Average Annual Rates: