What’s Better for Auto Insurance – USAA or State Farm?

Last Updated on June 6, 2021

With so many different options when it comes to car insurance, it can be difficult to choose which is the best for your needs. USAA and State Farm are both nationally recognized providers of auto insurance, and they’re both known for their excellent customer service and reasonable rates. In this article, we’ll compare and contrast these two popular insurance providers to help you determine which is the best fit for your needs.

What are the advantages of USAA?

usaa vs. state farmThe biggest advantage of USAA is that they offer incredibly affordable insurance policies with great value. In most cases, premiums with USAA will be lower than the competition (including State Farm). The reason they can keep their policies so low is that they have a limited customer base, as they are only available to members of the military and their families. If USAA is available to you, it’s highly unlikely that you will find a more affordable premium anywhere else.

One of the other reasons that USAA stands out from its competitors is because of its excellent customer service. Filing claims is relatively easy, and agents are very helpful and always willing to answer questions. They are rated very highly in terms of customer satisfaction on comprehensive surveys of insurance company experiences. Since USAA doesn’t have a large customer base, they are able to put plenty of effort into providing a great customer experience for their policyholders.

What are the advantages of State Farm?

State Farm provides an excellent range of coverage options when it comes to your vehicle. You can really customize your policy to make sure it addresses all the factors that are most important to you when it comes to car insurance. They have a great roadside assistance option that you can add to your policy, and they also offer insurance for RVs, motorcycles, classic cars, and other non-traditional vehicles that aren’t always insured by other companies.

State Farm also offers an excellent selection of discounts. While USAA also offers plenty of helpful discounts, State Farm has a very extensive menu of potential discounts to choose from that will bring your premiums down while maintaining the value of your insurance policy. It’s very easy to bundle your car insurance with other types of insurance that State Farm offers and receive a discount on all of your policies. They are also known for their accessibility, with offices conveniently located throughout the US where you can talk to an agent. They also have an online portal, and you can file claims 24 hours a day, seven days a week.

What are the disadvantages of USAA?

The biggest disadvantage of USAA is that not everyone qualifies for it. You can only use USAA if you are a member of the military, or if a member of your family is a military member and USAA insurance holder. This means that the affordable pricing that USAA offers is simply not available to everyone.

What are the disadvantages of State Farm?

State Farm is one of the biggest insurance providers in the US, which means that their customer service phone lines can take longer than some other companies. While State Farm does adhere to high customer service standards, it’s harder for them to maintain that standard than a small company like USAA. State Farm also has a higher customer complaint ratio than USAA, but their customer base is so much larger that this number could be negligible.

The other downside to State Farm is that it is more expensive than USAA and some other insurance companies. However, you do get a lot of value with the coverage that you purchase from State Farm. It’s a good option for people who care a lot about the overall value of their insurance, but if your main concern is just getting the lowest premium price, State Farm likely isn’t going to be the best option for you.

Comparing USAA and State Farm

Overall, USAA and State Farm are very similar in terms of their policy offerings. Both offer extensive coverage options, including liability, personal injury, collision, comprehensive, and anything else you might need. They also both have a great selection of discounts that can bring your policy down. Their discount options are slightly different, but there’s a lot of overlap, and there’s a good chance you could qualify for at least one or two of their discount options.

USAA and State Farm are also quite similar in that they are known for great customer service. They both have local branches throughout the states they operate in where you can talk to an insurance agent. They go to great lengths to make sure that all of your questions are answered and that you feel comfortable with the policy you purchase. They also are both known for having relatively streamlined claims processes.

The biggest difference between the two is that USAA is only available to military members and their families. If you qualify for USAA, it’s always best to use them as your auto insurance provider, because they are by far the most affordable among the big insurance companies, and they provide great value for money. However, if you don’t qualify for USAA, State Farm is a great insurance option to look at. They are particularly great if you are concerned about customer service and want flexible policy options. The first step to finding the right insurance policy is always getting a quote, which you can do online with State Farm.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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