There are many things that you must take into consideration when searching for an auto insurance provider. In this USAA vs State Farm comparison, we’ll look at several important insurance factors to help you with making the best decision today.
A little history about both companies.
In 1922, 25 Army officers came together and decided to insure each other’s automobiles. This was the beginning of the United States Army Automobile Association, which was later changed to the United Services Automobile Association or USAA. William Garrison was the first USAA president.
State Farm was also founded in 1922 and their goal was always to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.
Cheap car insurance rates comparison
USAA offers cheap insurance rates for those in the military. However, after a closer review you can possibly receive a better insurance quote with State Farm. I know people who use USAA and they are more than content about their insurance price.
However, many USAA customers have switched from USAA after finding cheaper insurance companies while shopping around. The only way to know which one is cheaper for you is to get an insurance quote from both companies and compare quotes.
Overall insurance claims satisfaction
All policyholders hope they never have to make a claim. However, in the world of insurance, claims are made and you have to always be prepared in case the unthinkable happens.
I have many friends who insure with both companies who have never had any issues regarding claims. Both companies are backed with billions in assets and both companies did well in the J.D. Power Customer Satisfaction Study. However, USAA ranked 2nd best out of all insurance providers and I’ve heard nothing but positive about their customer service. USAA is one out of three insurance companies with 5 out of 5 Power Circles in the J.D. Power Customer Satisfaction ranking. State Farm received 3 out of 5 Power Circles. In overall customer satisfaction, the initial claims reporting process, and the repair process USAA received 2 more Power Circles than State Farm.
Better Business Bureau will tell you a lot about a company and how the company handles customer complaints. In the BBB rating system, both State Farm and USAA received an A+ rating.
Financial strength
Every year State Farm releases their annual financial results and they always put up great number. In 2015, it was reported that State Farm had over $240 billion dollars in total assets. A.M. Best awarded State Farm with an “A++” rating. S&P Global Ratings awarded State Farm with an “AA” rating.
In 2015, it was reported that USAA had around $137 billion dollars in total assets. Just like State Farm USAA also received an A++ rating from A.M. Best, which is the highest rating that you can receive. Standard & Poor’s gave USAA an AA+ rating which is the second highest of 21 possible ratings.
Auto insurance discounts and features
USAA discounts
Accident Forgiveness – When you remain accident-free for the past five years at USAA, your premium will not go up after an at-fault accident.
Annual Mileage – Did you know that the amount you drive could affect your premium? If you drive less than average you could be saving hundreds on your auto policy. Low-mileage drivers can save with their annual mileage discount.
New vehicle discount – Drivers with vehicles that are three years old or less are able to save with a new vehicle discount.
Membership Loyalty – Members saved over $519 million when they bundled policies. USAA is all about building relationships with their customers. The more policies that you bundle the more you will be able to save.
Driver Training Credit – When a youthful operator has completed an approved driver training course.
Length of Membership Savings – The longer that you remain with USAA the more that you can save.
Military Installation Discount – Policyholders can save up to 15% on comprehensive coverage when they garage their vehicle on base.
Family insurance discount – You could save up to 10% on your auto policy when you insure with USAA and continue the family tradition of using USAA.
State Farm discounts
Vehicle Safety Discount – With State Farm you can save 40% on medical-related coverage. To be eligible for this discount you have to have a vehicle that is 1994 or older.
3 years ticket-free – Safe Drivers can save up to 10% on auto insurance.
Steer Clear Program – With Stay Clear you can save 15% on your premium while learning to become a better driver.
Collector & Classic Car Insurance – State Farm antique car insurance can save you money especially if your classic car is in the garage for a majority of the day. Available coverages for classic cars include liability, medical payments/no fault, comprehensive
collision, uninsured motor vehicle/underinsured motor vehicle, emergency road service, death, dismemberment and loss of sight, and loss of earnings.
Drive safe and save – State Farm’s telematics program allows you to learn and approve on your driving skills. Right from your app you can monitor driving habits and view your potential savings. With this program, you can save up to 25%.
Discount double check – Make sure that you are getting all the discounts that you deserve. This might not seem like much, but many policyholders are oblivious to how much they could be saving on insurance.
Multi-vehicle discount – Add two or more drivers on 1 policy and save up to 15%. (Related individuals)
Roadside assistance
USAA has mixed reviews with their roadside assistance coverage. Many customers have complained about their long wait times. USAA’s emergency roadside assistance will pay up to $100 per occurrence for towing service, flat tire change, gas delivery and more.
State Farm’s 24-hour roadside service offers mechanical labor on site for 1 hour. State Farm’s roadside service also offers tow, locksmith, gas, oil, jumpstart, change of tires, and more.
App comparison
The USAA mobile app lets you manage your insurance policies quickly and easily from your mobile device. However, there are not that many features that customers can look forward to.
State Farm’s app is easy to use, it’s intuitive, personalized, and packed with features such as Car Capture, Steer Clear, Drive Safe & Save, and more.
Bottom Line
USAA has a drawback such as USAA is only available to active or retired members of the U.S. Military. Another way that you can use USAA is if you have an active or retired member of the army in your family. State Farm on the other hand is available to everyone. Both companies have a strong financial rating. Both companies do well in claims, but USAA does slightly better. However, those looking for the cheapest monthly insurance rates, might get a better quote with State Farm. It’s a close battle, but I encourage you take a few minutes to compare quotes today.