Head-to-head comparison
State Farm vs USAA
This is a comparison that only applies to military members, veterans, and their eligible family. USAA writes only for the military affinity population; State Farm is open-market. For USAA-eligible households USAA has published consistently among the top of the industry on both claims satisfaction and price for the eligible profile, while State Farm offers the ~19,000-agent captive network and the broader coverage menu typical of the mass-market nationals. The real deltas: eligibility, telematics structure (SafePilot's phone-only model vs Drive Safe & Save's dual-track), the 2025 AM Best divergence (USAA affirmed Superior; State Farm Mutual Automobile downgraded), and gap-coverage availability.
Pick State Farm if you…
- Do not qualify for USAA membership and need a carrier open to all consumers.
- Want Drive Safe & Save, which can lower or raise premium at renewal (up to 30% discount).
- Have a Steer Clear-eligible driver under 25 with a clean record for an added discount.
Pick USAA if you…
- Qualify through active-duty, veteran, or military-family status for USAA membership.
- Deploy, park on base, or store your vehicle for vehicle-storage and on-base discounts (where available).
- Want SafePilot, USAA's app-based safe-driving program with discount tiers (state availability varies).
At a glance
Why this comparison exists. USAA writes personal auto only for the military affinity population (active-duty, Guard, Reserve, veterans, spouses, and children of members). State Farm is open-market. This comparison is useful only for shoppers who have confirmed USAA eligibility; for the general shopper, State Farm's realistic alternatives are the other national mass-market carriers (Allstate, GEICO, Progressive, Farmers).
Where these two actually differ
Who can actually buy a USAA policy
USAA is a military-affinity carrier. Eligible applicants are: active-duty, National Guard, Reserve, honorably discharged veterans, pre-commissioning officer candidates, and their spouses and children. If you are not in one of those groups, USAA is not available to you, and this comparison ends there. State Farm is open-market and available to any U.S. driver. For eligible households, USAA's eligibility is a one-time check at enrollment; once a USAA member, children of USAA members retain eligibility.
SafePilot vs Drive Safe & Save
USAA SafePilot is a phone-only telematics program; the mobile app detects driving behavior without a plug-in device. State Farm Drive Safe & Save historically used a plug-in device, now also runs through the mobile app. SafePilot's published upside and surcharge rules differ by state; verify the state addendum. Drive Safe & Save pairs a sign-up discount with ongoing mileage-and-behavior credit and has more limited surcharge exposure in most states. For low-mileage drivers, Drive Safe & Save's mileage mechanic typically wins; for consistent-safe drivers, SafePilot's phone-only enrollment is the lighter-lift option.
Coverage menu: gap gap and military-specific coverages
State Farm notably does not sell gap insurance (loan/lease payoff) on personal auto: stated plainly on its own auto page. USAA offers gap coverage (listed as Loan/Lease Insurance) and additionally offers military-specific protections including partial coverage during PCS moves, flexibility for garaging while on deployment, and overseas-shipment coverage. If you carry a lease or a loan with meaningful equity gap, USAA is the clearly-fit quote; State Farm is not.
AM Best divergence 2025: USAA affirmed, State Farm Mutual downgraded
USAA was affirmed at A++ (Superior) in June 2026, the highest AM Best FSR tier. AM Best downgraded State Farm Mutual Automobile Insurance Company and affiliates on November 14, 2025 from A++ (Superior) to A+ (Superior), citing multi-year underwriting results on the personal-auto book. Both carriers remain above most consumer-facing thresholds, but the trajectory differs; buyers who weight counterparty strength heavily should note the divergence. USAA's bank-plus-insurance group structure is also distinct from State Farm's pure mutual-insurance structure, which matters for members who hold multiple USAA products.
Claims-satisfaction signal: USAA historically among the top
USAA has historically scored among the top of J.D. Power's U.S. Auto Insurance Study on both overall satisfaction and claims satisfaction; because USAA is an affinity carrier, J.D. Power publishes USAA's scores separately from the mass-market national ranking. State Farm has also scored above the national mass-market mean on claims satisfaction. For USAA-eligible households, the published signal consistently favors USAA; for shoppers choosing between the two realistic alternatives (USAA for eligible, State Farm for the general market), the choice is driven more by eligibility than by survey averages.
Telematics side by side
State Farm
Program Drive Safe & Save
Tracks acceleration, hard_braking, cornering, phone_use, speed, mileage
Can raise rate? Yes
Enrollment max Initial discount for enrolling
Renewal max Up to 30% based on how you drive; some states permit above 30%; New York capped at 30%
State exclusions CA, MA, RI
State Farm re-adjusts premium at each policy renewal (typically every six months) using up to the prior 12 months of data. The adjustment CAN be a discount OR a surcharge. State Farm specifically notes that if mileage exceeds 7,500 miles annually, premium may increase. That is a meaningful difference from telematics programs that only offer a discount. Not available in California, Massachusetts, or Rhode Island; a discount may not be available in North Carolina depending on individual facts. Enrollment uses the State Farm mobile app plus a mailed Bluetooth beacon paired with the app. Tracked behaviors include acceleration (described as starting fast off the line), braking (fast, hard stops), cornering (quick, sharp turns), phone distraction (defined as phone moving while vehicle moving and screen on), speed over posted limit by 8+ mph, and annual mileage.[4]
USAA
Program SafePilot
Tracks acceleration, hard_braking, cornering, time_of_day, mileage, phone_use
Can raise rate? No
Enrollment max Up to 10% initial enrollment discount per publisher summaries
Renewal max Up to 30% continued safe-driving discount per publisher summaries
State exclusions CA
Publisher summaries describe SafePilot as a discount program (up-to-10% enrollment, up-to-30% safe-driving) with no documented rate-increase mechanic in the materials fetched at review. Treat the no-increase framing as derived from publisher summaries rather than a direct USAA statement; state program materials in your state are the source of truth. State availability per publisher summaries: 47 states plus Washington, D.C.; California NOT included. State availability changes over time as USAA files or withdraws products by state; confirm with USAA before enrolling.[5]
Financial strength
State Farm
AM Best FSR A+ (Superior)
Long-Term ICR aa (Superior)
Outlook Stable
Affirmed Nov 14, 2025
MATERIAL RATING EVENT: On November 14, 2025, AM Best DOWNGRADED the Financial Strength Rating of State Farm Mutual Automobile Insurance Company and its affiliates to A+ (Superior) from A++ (Superior), and downgraded the Long-Term ICR to "aa" (Superior) from "aa+" (Superior). Outlook was revised to stable from negative. AM Best attributed the action to a revision in the group's operating performance assessment to adequate from strong, reflecting adverse underwriting experience in private-passenger auto and homeowners, a challenging regulatory environment, and elevated weather-related losses. A+ (Superior) remains a strong rating in absolute terms; the direction of the change is the honest context to attach to it.[1]
USAA
AM Best FSR A++ (Superior)
Long-Term ICR aaa (Exceptional)
Outlook Stable
Affirmed Jun 25, 2026
On June 25, 2026, AM Best affirmed the FSR of A++ (Superior) and the Long-Term ICR of "aaa" (Exceptional) of United Services Automobile Association and its property/casualty and life/health subsidiaries, with a stable outlook. AM Best cited improved operating performance in recent years supported by rate increases and other underwriting and claims actions, and assessed risk-adjusted capitalization at the strongest level as measured by BCAR. A++ is the top tier on AM Best's FSR scale; "aaa" is the top tier on the Long-Term ICR scale. Among the four other R6-A baseline reviews, only GEICO also carries A++ (Superior); State Farm, Progressive, and Allstate currently sit at A+ (Superior).[1]
Coverage differences
| Coverage | State Farm | USAA |
|---|---|---|
| Accident forgiveness | — | OfferedAvailability and eligibility vary by state and driving history. |
| Personal injury protection (PIP) and medical payments | — | OfferedAvailability and required amounts are state specific. |
| Emergency road service / car rental & travel expenses coverage / rideshare driver (select states) | OfferedCommonly-bundled endorsements. Availability, limits, and state-specific rules vary; confirm with a State Farm agent. | — |
| Rideshare gap coverage in some states | — | OfferedAvailability varies. |
| Roadside assistance and rental reimbursement | — | OfferedCommon optional add-ons. |
| Vehicle-storage coverage during deployment or non-use | — | OfferedDocumented on USAA's military page. Amounts, terms, and state availability vary; publisher summaries flag North Carolina and Virginia as exclusion states for the storage benefit. |
| Collision | OfferedDamage to your vehicle from an impact with another vehicle or object. | Offered |
| Comprehensive | OfferedNon-collision damage (theft, vandalism, weather, animal strikes). | Offered |
| Gap coverage | Not offeredNOT offered by State Farm on the main auto page. State Farm suggests the reader's auto loan provider is the usual source for this coverage. If you finance or lease a vehicle and expect the lender to require gap-style coverage, verify with your lender that a third-party gap product is acceptable. | — |
| Bodily injury and property damage liability | OfferedState minimum limits vary; higher limits generally available. | OfferedState minimum limits vary. |
| Uninsured / underinsured motorist | OfferedRequired or optional depending on state. | OfferedRequired or optional depending on state. |
Dated events that specifically move this matchup
Affects State FarmAM Best downgraded State Farm Mutual Automobile Insurance Company (November 14, 2025)Nov 14, 2025
AM Best downgraded State Farm Mutual Automobile and affiliates from A++ (Superior) to A+ (Superior) on November 14, 2025, citing multi-year underwriting results. State Farm remains well above most consumer-facing thresholds; the downgrade signals balance-sheet pressure on the personal-auto book.[1]
Affects USAAAM Best affirmed USAA at A++ (Superior) with stable outlook (June 25, 2026)Jun 25, 2026
AM Best affirmed United Services Automobile Association (USAA) and its property/casualty subsidiaries at A++ (Superior) in June 2026, citing capital adequacy and the stability of the affinity-member base.[1]
Who should quote each
Pick State Farm ifAny U.S. shopper, especially agent-channel and in-person preference
- You are not USAA-eligible. State Farm is the realistic choice between these two.
- You want a local agent; State Farm's ~19,000-office network is the largest personal-lines captive-agent footprint.
- You drive significantly below average annual miles and want to capture that explicitly via Drive Safe & Save mileage credit.
- You weight J.D. Power claims-satisfaction signal and want the higher-scored national mass-market option.
Pick USAA ifUSAA-eligible households (military, veteran, family)
- You or a parent is active-duty, National Guard, Reserve, honorably-discharged veteran, or a direct family member. USAA is open to you.
- You carry a loan or lease and need gap-equivalent coverage (USAA Loan/Lease Insurance).
- You expect PCS orders, overseas deployment, or vehicle shipment during the policy term; USAA writes military-specific endorsements for these events.
- You want to consolidate auto, home, banking, and investment products under one affinity organization.
Quote both ifUSAA-eligible households shopping full coverage
- For USAA-eligible households, running parallel quotes at identical coverage is still the right move. USAA's published advantage on claims satisfaction does not automatically mean USAA is cheaper for every eligible profile.
- Low-mileage drivers in states where Drive Safe & Save strongly credits mileage: compare the SafePilot behavior-only pricing vs the Drive Safe & Save mileage-weighted pricing on your actual annual miles.
- Military households approaching a PCS or deployment event: USAA's event-specific endorsements may change the net cost even if the base rate is close.
- Buyers who weight counterparty strength: USAA's A++ affirmation and State Farm's A+ downgrade both inform the decision for buyers who read AM Best as a tie-breaker.
Get real quotes from State Farm and USAA on your own profile.
Compare car insurance quotesCommon questions
Is USAA cheaper than State Farm?
For USAA-eligible households, publisher comparisons at identical coverage have historically shown USAA pricing at or below State Farm for most clean-record profiles. The exact gap varies by state, vehicle, and driver history. Both carriers return bindable quotes in 15 to 20 minutes; running parallel quotes is the only reliable way to see your actual price.
Who qualifies for USAA?
USAA eligibility is open to: active-duty U.S. military, National Guard and Reserve members, honorably-discharged veterans, pre-commissioning officer candidates, and the spouses and children of USAA members. Once a child of a USAA member joins, they retain eligibility for life. If no one in your household has a military connection, you are not USAA-eligible.
Does State Farm offer gap insurance?
No. State Farm's own auto page states gap coverage is not offered. USAA Loan/Lease Insurance (gap-equivalent) is available to eligible members on financed or leased vehicles.
Which is better for claims?
USAA has historically scored among the top of J.D. Power's claims-satisfaction study (reported in a separate affinity tier). State Farm has also scored above the mass-market national mean. For USAA-eligible households the published signal favors USAA; for the general market State Farm is the stronger published scorer among the national mass-market carriers.
What happened to State Farm with AM Best in 2025?
AM Best downgraded State Farm Mutual Automobile Insurance Company and affiliates in November 2025 (from A++ (Superior) to A+ (Superior)) on November 14, 2025, citing multi-year personal-auto underwriting results. State Farm remains the #1 U.S. personal-auto writer by premium and is well above most consumer-facing thresholds; the downgrade signals balance-sheet pressure, not an immediate solvency concern.
Will USAA cover me during a PCS or overseas deployment?
USAA writes military-specific endorsements for PCS moves, deployment-period garaging flexibility, and overseas vehicle shipment. The specific coverage and process are documented in the USAA military auto-insurance product; call USAA before orders arrive to time the policy changes correctly.
Should I quote both?
Yes, if you are USAA-eligible. Running parallel quotes at identical coverage is the only reliable way to see your actual price; both carriers quote fast and bind digitally.
Sources & methodology
- State FarmAM Best via Business Wire: Downgrades Credit Ratings of State Farm Mutual Automobile Insurance Company and Affiliates (November 14, 2025) (AM Best via Business Wire)
- State FarmState Farm: Car insurance overview (coverage types; statement that gap insurance is not offered) (State Farm)
- State FarmState Farm: Car insurance discounts page (Drive Safe & Save, Steer Clear, Good Student, Passive Restraint, others) (State Farm)
- State FarmState Farm: Drive Safe & Save page (enrollment mechanics, tracked behaviors, discount and surcharge mechanics, state carve-outs) (State Farm)
- State FarmState Farm: About Us (mutual company structure; ~19,000 agents) (State Farm)
- State FarmNerdWallet: State Farm Car Insurance Review (September 2026 modeled rates) (NerdWallet)
- State FarmValuePenguin: State Farm Insurance Review (modeled full-coverage rate) (ValuePenguin)
- SharedAgency Checklists: NAIC 2025 Market Share, Top 25 Private Passenger Auto Insurers (secondary reporting of NAIC 2025 direct-premiums-earned data) (Agency Checklists)
- State FarmS&P Global Market Intelligence: Progressive now No. 1 US private auto insurer for full 12 months, estimates show (May 2026, trailing 12 months ending March 31 2026) (S&P Global Market Intelligence)
- SharedJ.D. Power: 2025 U.S. Auto Insurance Study (regional press release) (J.D. Power)
- SharedInsurance.com: J.D. Power's best and worst auto insurance companies for 2025 (secondary reporting of the 2025 Auto Insurance Study regional scores) (Insurance.com)
- State FarmJ.D. Power: 2025 U.S. Auto Claims Satisfaction Study (press release) (J.D. Power)
- State FarmNational Association of Insurance Commissioners: Consumer Information Source (complaint index methodology and lookup by insurer) (NAIC)
- USAAAM Best via Business Wire: Affirms Credit Ratings of United Services Automobile Association, Its Subsidiaries and USAA Capital Corporation (June 25, 2026); FSR affirmed at A++ (Superior); Long-Term ICR affirmed at "aaa" (Exceptional); outlook stable (AM Best via Business Wire)
- USAAUSAA: Membership eligibility page (active-duty and former U.S. military service; qualifying family members; documentation required at sign-up) (USAA)
- USAAUSAA: Auto insurance overview (coverage types; SafePilot; direct-to-consumer distribution) (USAA)
- USAAUSAA: Military car insurance page (vehicle-storage discount, deployed-driver discount, on-base garaging discount, overseas coverage) (USAA)
- USAAUSAA: SafePilot telematics program (app-based enrollment; tracked behaviors; enrollment and safe-driving discount tiers; state availability) (USAA)
- USAANerdWallet: USAA Auto Insurance Review (September 2026 modeled full-coverage rate ~$1,587/yr against a $2,344 national average) (NerdWallet)
- USAAU.S. News & World Report: USAA Car Insurance Review (2026 modeled full-coverage rate ~$1,492/yr against a $2,510 national average) (U.S. News & World Report)
- USAANAIC: Consumer Information Source (complaint index methodology; per-company, per-state complaint indices) (National Association of Insurance Commissioners)
Every pivot and matrix cell on this page traces to a source listed above. Shared sources (e.g. NAIC Consumer Information Source, J.D. Power press-release landing pages) are attributed to both carriers.