When comparing USAA and State Farm, it’s important to consider coverage options, pricing, claims process, customer service, and overall reputation. USAA is known for offering exclusive benefits to military members, veterans, and their families, while State Farm provides nationwide coverage and a strong network of local agents.
This comparison will help you determine which insurer best fits your needs based on policy offerings, discounts, and customer experience.
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Coverage Options
Both USAA and State Farm offer standard auto, home, and life insurance policies, but USAA includes unique military-specific benefits, while State Farm provides a wider range of financial services.
USAA Coverage Options
- Auto Insurance: Standard liability, collision, comprehensive, uninsured/underinsured motorist, medical payments
- SafePilot® Telematics Program: Offers discounts based on safe driving habits
- Car Replacement Assistance: Pays for a new car if your vehicle is totaled
- Military-Specific Benefits: Overseas auto insurance, deployment discounts, and vehicle storage options
- Homeowners Insurance: Covers dwelling, liability, personal property, and military uniform replacement
- Umbrella Insurance: Extra liability protection beyond standard policies
State Farm Coverage Options
- Auto Insurance: Liability, collision, comprehensive, uninsured/underinsured motorist
- Drive Safe & Save™ Telematics Program: Provides savings for good driving habits
- Steer Clear® Program: Offers discounts for young drivers
- Homeowners Insurance: Covers dwelling, liability, and additional coverage options such as flood and earthquake insurance
- Life and Health Insurance: Provides term, whole, and universal life insurance policies
- Banking and Financial Services: Offers banking, investment, and retirement planning options
Key Takeaway: USAA is better for military members, offering deployment-related benefits and exclusive discounts, while State Farm provides a broader range of financial services.
Pricing and Discounts
Insurance pricing depends on factors like location, driving history, credit score, and policy choices. USAA typically offers lower premiums for military members and their families, while State Farm provides extensive discounts for bundling and safe drivers.
USAA Pricing & Discounts
- SafePilot® Telematics Discount – Rewards safe driving behavior
- Military Deployment Discount – Savings for storing a vehicle while on active duty
- Bundling Discount – Savings when bundling home and auto insurance
- Good Student and Multi-Vehicle Discounts
State Farm Pricing & Discounts
- Drive Safe & Save™ Telematics Discount – Personalized savings for tracking driving behavior
- Multi-policy and multi-vehicle discounts
- Accident-Free Discount – Rewards safe drivers over time
- Good Student and Defensive Driving Discounts
Key Takeaway: USAA generally offers lower rates for military families, while State Farm provides better bundling discounts and financial service benefits.
Claims Process
Both USAA and State Farm offer 24/7 claims support, but USAA is known for its exceptional claims satisfaction ratings.
USAA Claims Process
- Fast claims processing with high customer satisfaction ratings
- 24/7 claims support via phone, mobile app, or online portal
- Military-specific claims handling for deployment-related situations
State Farm Claims Process
- 24/7 claims support with local agent assistance
- Online and mobile app claims tracking
- Rental car reimbursement and travel expense coverage available
Key Takeaway: USAA is highly rated for claims satisfaction, while State Farm offers local agent support for personalized claims assistance.
Customer Service
USAA Customer Service
- Top-rated for customer service and claims satisfaction
- Exclusive to military members and their families
- 24/7 online and phone support
State Farm Customer Service
- Strong local agent network for in-person support
- Digital tools for policy management and claims tracking
- Highly rated for policy personalization
Key Takeaway: USAA is consistently rated as a top provider in customer service, while State Farm offers strong agent-based support and digital tools.
Unique Features
USAA Unique Features
- SafePilot® Telematics Program – Provides discounts based on driving behavior
- Military Deployment Discounts – Savings for storing vehicles while on duty
- Car Replacement Assistance – Helps cover the cost of a new car after a total loss
- Uniform Coverage – Protects military uniforms with no deductible
State Farm Unique Features
- Drive Safe & Save™ Telematics Program – Offers savings for safe driving
- Steer Clear® Program – Designed for young and new drivers to earn discounts
- Banking and Investment Services – Offers financial planning and loan options
- Accident-Free Discount – Rewards long-term policyholders with clean driving records
Key Takeaway: USAA is the best choice for military members and veterans, while State Farm provides more financial services and incentives for young drivers.
Availability
- USAA: Available nationwide, but only for active military, veterans, and their families.
- State Farm: Available nationwide with no restrictions on eligibility.
Key Takeaway: State Farm is available to all drivers, while USAA is exclusive to military members and their families.
Reputation and Reviews
Both USAA and State Farm are financially strong and have high customer satisfaction ratings.
USAA Reputation
- A++ (Superior) rating from A.M. Best for financial strength
- Ranked #1 in customer satisfaction by J.D. Power
- Highly rated for military-specific benefits
State Farm Reputation
- A++ (Superior) rating from A.M. Best for financial strength
- Ranks highly for agent support and policy customization
- One of the largest insurance providers in the U.S.
Key Takeaway: USAA consistently ranks as the top insurance provider for military families, while State Farm is highly rated for accessibility and customer support.
Final Verdict: Which One is Better?
The best insurance provider between USAA and State Farm depends on your military status, budget, and service preferences.
Choose USAA if:
✔️ You are a military member, veteran, or part of a military family
✔️ You want lower premiums and military-specific benefits
✔️ You prefer a top-rated customer service experience
Choose State Farm if:
✔️ You want a nationwide insurance provider with strong local agent support
✔️ You are a young driver looking for discounts and financial planning services
✔️ You need a broad range of insurance and investment products
Both USAA and State Farm are excellent choices depending on your needs. USAA is best for military families, while State Farm offers great agent support and additional financial services.
Still unsure which is right for you? Contact Blake Insurance Group today for a personalized quote and expert advice! 🚗🏡
USAA vs. State Farm - Frequently Asked Questions
USAA generally offers lower auto insurance rates compared to State Farm. USAA’s average monthly premium is around $89, while State Farm’s average is $112. However, USAA is only available to military members, veterans, and their families.
USAA consistently ranks #1 in customer satisfaction for auto insurance, according to J.D. Power’s Auto Insurance Study. State Farm also ranks highly for customer service and agent support, but USAA receives the highest ratings for overall satisfaction.
State Farm tends to offer better coverage options for high-risk drivers, including those with DUIs, speeding tickets, or at-fault accidents. USAA has stricter underwriting guidelines, making it less flexible for high-risk drivers.
USAA is specifically designed for military members, veterans, and their families, offering military deployment discounts and financial services tailored to service members. State Farm does not have military-specific benefits but provides competitive pricing for the general public.
USAA’s average homeowners insurance rate is around $1,384 per year, while State Farm’s average is $1,312 per year. USAA offers specialized coverage for military members, including protection for military uniforms.
USAA offers SafePilot®, which tracks driving habits and rewards safe drivers. State Farm offers Drive Safe & Save™, which monitors real-time driving behavior and customizes rates accordingly. Both programs offer discounts based on driving habits, but State Farm’s program is available in more states, while USAA’s is limited to military families.
USAA consistently ranks at the top for customer service and claims satisfaction, while State Farm is highly rated for agent-based customer service and policy customization.
✔ Choose USAA if you prefer top-rated customer support and are eligible as a military member or veteran.
✔ Choose State Farm if you prefer local agent support and broader policy availability.
Blake Nwosu
Owner & Principal Agent
Blake Insurance Group
Phone: (888) 387-3687
Email: [email protected]
Hours: Mon-Fri 9:00 am to 5:00 pm
Sat-Sun: Closed