THE VERDICT
USAA is better than State Farm for people who qualify for membership, per WalletHub’s grading criteria. USAA beats State Farm in terms of cost, types of insurance, discount availability, and claims satisfaction, though State Farm receives a lower volume of customer complaints than USAA.
The average State Farm car insurance premium is $60 per month, according to WalletHub’s research. The average USAA car insurance premium is $41 per month.
While both State Farm and USAA provide coverage to people in all 50 states and Washington D.C., USAA insurance policies are only available to active, retired and honorably discharged U.S. military members and certain family members. That is a major limitation for most people – just ask Gronk. Read on to learn more about how State Farm and USAA stack up against one another.
Compare State Farm vs. USAA
- Types of Insurance: USAA beats State Farm
- Cost: USAA beats State Farm
- Discounts: USAA beats State Farm
- NAIC Rating: State Farm beats USAA
- J.D. Power Rating: USAA beats State Farm
- Market Share: State Farm beats USAA
USAA has a higher customer satisfaction rating from J.D. Power than State Farm. However, State Farm has a higher user rating on WalletHub and a better customer complaint score from the National Association of Insurance Commissioners (NAIC).
Both companies have nevertheless received more than the average number of customer complaints for insurance companies their size, according to the NAIC. Customers say that State Farm has problems with its claims-handling process and that USAA has problems with its customer service practices. Still, State Farm and USAA are both in good standing with leading credit rating agencies like AM Best, S&P, and Moody’s Investors Service, a testament to their financial strength and claims-paying ability.
State Farm is ultimately better than USAA when it comes to attracting customers, though. State Farm is the largest provider of private-passenger car insurance in the U.S., having sold 16% of all premiums written in 2021, according to the Insurance Information Institute. USAA ranks fifth in the nation, with 6% of personal auto insurance premiums written in 2021.
State Farm vs. USAA: Customer Satisfaction Ratings
| Source |
State Farm |
USAA |
| NAIC Complaint Index |
1.35 |
1.71 |
| J.D. Power Rating (Customer Satisfaction) |
3.3/5 |
3.7/5 |
| J.D. Power Rating (Claim Satisfaction) |
4.4/5 |
4.5/5 |
| WalletHub Editor's Rating |
4.1/5 |
3.5/5 |
| WalletHub User's Rating |
3.0/5 |
2.5/5 |
The NAIC Complaint Index is calculated by dividing a company’s number of complaints by its share of market premiums. The average is always 1.00, and both State Farm and USAA exceed that benchmark. WalletHub and J.D. Power both use a standard 5-star scale for rating.
To learn more about what sets these two insurance providers apart, check out WalletHub’s full
State Farm review and
USAA insurance review
