State Farm vs. USAA: Best Auto Insurance for 2021
When comparing auto insurance companies like State Farm vs. USAA, you want to analyze both company pricing and company ratings. USAA is more well-reviewed by A.M. Best and the Better Business Bureau. However, State Farm offers more affordable auto insurance rates to men and women of various ages and marital statuses.
- USAA is more well-reviewed by A.M. Best and the Better Business Bureau
- State Farm offers more affordable rates to women of various ages than USAA car insurance.
- State Farm offers more affordable rates to men of various ages
Comparing auto insurance companies can be a stressful experience. In an effort to reduce the stress, this review will be focusing solely on USAA and State Farm.
This guide will not be answering questions like “Why is USAA homeowners insurance so expensive?” or discussing USAA vs. State Farm homeowners insurance. We will only be covering company auto insurance rates and financial ratings in this State Farm vs. USAA Insurance review.
Before we get into the details of State Farm vs. USAA auto insurance, type your ZIP code into our free and helpful tool above to find affordable auto insurance quotes from companies in your area.
State Farm vs. USAA: Which company offers more affordable rates to men?
When you start comparing auto insurance companies, many people look at car insurance rates first.
The following table shows the rates offered to men of various ages by the largest auto insurance companies, including State Farm and USAA. These rates are for single 17 and 25-year-olds as well as married 35 and 60-year-old men.
|Company||Married 60-Year-Old Male Average Annual Rates||Married 35-Year-Old Male Average Annual Rates||Single 25-Year-Old Male Average Annual Rates||Single 17-Year-Old Male Average Annual Rates|
|State Farm Mutual Auto||$1,349.64||$1,529.96||$2,003.27||$5,604.41|
|Travelers Home & Marine Ins Co||$1,702.69||$1,701.83||$1,922.42||$27,457.38|
|Liberty Mutual Fire Ins Co||$3,781.20||$3,967.26||$5,397.88||$15,000.77|
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As you can see, for single 17-year-old males, USAA is over $5,400 more expensive per year than State Farm. For single 25-year-old males, USAA is $900 more expensive per State Farm per year.
For married 35-year-old males, State Farm is about $500 cheaper per year than USAA. Finally, for married 60-year-old males, State Farm is just over $600 cheaper per year than USAA.
It was a landslide. It’s very safe to say our USAA vs. State Farm Insurance review has shown that the latter offers more affordable rates to male drivers. Let’s see if this holds true when we compare the rates offered to women of various ages.
State Farm vs. USAA: Which company offers more affordable rates to women?
We are now going to engage in the same process we did in the last section, but this time we will be analyzing the rates offered to women of various ages by companies including State Farm and USAA.
|Company||Married 60-Year-Old Female Average Annual Rates||Married 35-Year-Old Female Average Annual Rates||Single 25-Year-Old Female Average Annual Rates||Single 17-Year-Old Female Average Annual Rates|
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As you can see, for single 17-year-old females, USAA is $5,400 more expensive per year than State Farm. For single 25-year-old females, USAA is nearly $1,200 more expensive than State Farm per year.
For married 35-year-old females, USAA is over $500 more expensive than State Farm per year. Finally, for married 60-year-old females, USAA is over $600 more expensive per year than State Farm.
Again, State Farm wins. Let’s wrap up with company ratings and see if State Farm can sweep this thing.
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State Farm vs. USAA: Which company is more well-reviewed?
Before we wrap up for the day, we must stress the importance of company ratings from organizations such as A.M. Best and the Better Business Bureau. A positive rating from one or both of these two rating organizations can give consumers confidence that an auto insurance company has and will continue to have financial strength.
The Better Business Bureau’s rating scale goes from the highest score of “A+” down to the lowest score of “F”. The Better Business Bureau gave USAA a score of “B”. Not to mention, USAA is not currently BBB accredited.
What score did the Better Business Bureau give State Farm? It turns out that not only does State Farm lack BBB accreditation, but they also lack a rating as well.
A.M. Best’s Financial Strength Rating (FSR) scale is slightly different in that it ranges from “A++” down to “D”. Not to mention, they actually have two different scales.
State Farm has A.M. Best’s highest rating of “A++”. How did USAA do with A.M. Best? They also received the highest possible score of “A++”.
A.M. Best also has what is called Long-Term Issuer Credit Ratings (Long-Term ICR). Whereas their Financial Strength Ratings are about an insurer’s financial strength as well as its ability to meet ongoing policy and contractual obligations, a Long-Term ICR is focused on the future. A Long-Term ICR can be issued on a long-term basis or short-term basis.
USAA received the highest ICR of “aaa.” What ICR did State Farm receive? They received a much lower, but still good, rating of “a”.
In short, you have two worthy options here, but don’t let your auto insurance company comparison stop with State Farm vs. USAA. Type your ZIP code into our free tool below to find affordable auto insurance quotes from providers in your area.