State Farm vs USAA

Verdict

State Farm and USAA are both owned by the people they insure, and both were founded in 1922, but they sell in opposite ways. State Farm, a mutual and the largest U.S. auto insurer, wrote $69.16 billion of private passenger auto premium in 2025 (18.61%) through more than 19,200 captive agent offices. USAA, a reciprocal exchange for the military community, wrote $22.96 billion (6.18%) entirely direct, online, in its app and by phone. It has no local agents.

On ratings USAA is ahead. AM Best affirmed its A++ (Superior) rating in June 2026, while State Farm was downgraded to A+ (Superior) in November 2025. USAA isn't rank-eligible in J.D. Power studies, but its published scores beat every ranked insurer in all 11 regions in 2026. It scored 741 in the 2025 claims study against State Farm's 716 (tied 8th of 20). Both return money to customers. State Farm announced a $5 billion auto dividend in 2026, averaging about $100 per vehicle. USAA said it returned a record $3.8 billion to members in 2025.

USAA is only for active-duty and reserve members, honorably discharged veterans, certain cadets and the spouses and children of members. If you qualify and don't need an agent, it is a strong first quote. If you want a local agent, State Farm is the stronger fit. Either way, compare both prices.

Choose State Farm if

• You aren't eligible for USAA.
• You want a named local agent to handle your policies and help with claims.
• You plan to bundle auto with home, renters or life through one agent.
• You have a driver under 25 who could earn the Steer Clear discount.

Choose USAA if

• You qualify through military service or a family member. USAA's 2026 J.D. Power scores topped every region.
• You live in Massachusetts or Rhode Island, where State Farm doesn't write new auto business.
• You need deployment-friendly features: vehicle storage discounts of up to 60%, on-base garaging savings and overseas coverage.
• You want a mileage-based option (SafePilot Miles) alongside a safe-driving program.
• You are comfortable handling everything by app, website and phone.

Key differences

Check USAA eligibility first, then get both quotes with identical limits and deductibles. Drive Safe & Save isn't offered in California, Massachusetts or Rhode Island, so check which telematics options apply in your state (see telematics programs from the major insurers compared). car insurance for military members and veterans covers other choices for service members, and the compare auto insurers side by side shows the full profiles side by side.