Jane Dotson
USAA and State Farm are two of the most popular insurance companies, but their discounts and policies differ. State Farm has the cheapest homeowners insurance in Illinois, with an average price of $1,295 per year. In contrast, USAA's average homeowners insurance rate is $127 per month, or $1,524 per year. State Farm's average rates are slightly cheaper at $113 per month or $1,356 per year. However, USAA is only available to active-duty military members, veterans, and certain family members, while State Farm has 50-state availability and no membership restrictions.
| Characteristics | Values |
|---|---|
| Average monthly cost | USAA: $127 |
| State Farm: $113 | |
| Customer satisfaction rating | USAA: High J.D. Power rating |
| State Farm: Higher WalletHub user rating | |
| Customer complaints | USAA: Fluctuating, higher than average |
| State Farm: Lower than average | |
| Availability | USAA: Only for military members, veterans and their families |
| State Farm: Available in all 50 states | |
| Discounts | USAA: Premier Driver, New Vehicle, Multi-policy, Rental Car |
| State Farm: Anti-theft, Defensive Driving, Good Driving, Steer Clear | |
| Mobile app | USAA: iOS and Android app available |
| State Farm: Award-winning iOS and Android app available |
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What You'll Learn
Customer satisfaction and claims management
USAA and State Farm are two of the most popular insurance companies, but their discounts and policies differ. Both companies score well for customer satisfaction and claims management and have robust digital tools. State Farm has a higher user rating on WalletHub and a better customer complaint score from the National Association of Insurance Commissioners (NAIC). State Farm has a lower volume of customer complaints than USAA, indicating a satisfactory level of customer service. USAA has a higher customer satisfaction rating from J.D. Power than State Farm.
USAA has one-third the number of complaints than an average company its size, according to the NAIC. Most people with USAA coverage are happy with their experience. USAA's homeowners insurance comes with replacement cost coverage at no extra cost. With replacement cost coverage, you'll be reimbursed for the full cost to replace damaged or destroyed property, without factoring in depreciation. USAA also offers financial literacy classes to its members as well as retirement planning.
State Farm has the cheapest homeowners insurance in Illinois, with an average price of $1,295 per year. State Farm also has the cheapest car insurance rates in Illinois. The company is known for offering affordable car insurance, quality customer service, and a standard array of auto insurance options. State Farm also offers bundling options, specialised coverage, and discount opportunities that may help drivers save money on their policies. The State Farm Mobile app is an award-winning tool for managing your insurance and bank account.
Both companies have high financial stability marks, multiple discounts, and robust coverage options. State Farm provides robust policy types and plenty of add-on coverage, making them a solid option for both standard homeowners and those with unique coverage needs. USAA exclusively offers policies to military members, veterans, and their families. It provides strong value with an average annual premium of $2,097 for $250,000 in dwelling coverage.
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Discounts and policies
State Farm offers a wide range of discounts to its policyholders, including Anti-theft, Defensive Driving, Good Driving, and Steer Clear discounts. The Steer Clear discount encourages young people to be safer drivers and can save them money on their premiums. State Farm also offers bundling options and specialized coverage that may help drivers save money on their policies. Drivers with blemishes on their driving records may find State Farm's rates lower than its competitors. State Farm also provides robust policy types and plenty of add-on coverage, making it a solid option for both standard homeowners and those with unique coverage needs. However, State Farm currently has only four discount options.
USAA offers discounts that State Farm doesn't, including Premier Driver, New Vehicle, Multi-policy, and rental car discounts. USAA also provides strong value with an average annual premium of $2,097 for $250,000 in dwelling coverage. USAA coverage includes personal property replacement, which replaces lost or damaged items without considering depreciation. This is offered at no extra cost, whereas other providers usually charge extra for this coverage. USAA also offers some extras that appeal to people in the armed forces, such as a $0 deductible on uniforms while on active duty. However, USAA is only available to active-duty military members, veterans, and certain family members.
Both State Farm and USAA have mobile apps available for iOS and Android that allow users to manage their insurance and banking accounts. State Farm's app has won awards for being an excellent tool for managing insurance and bank accounts.
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$23.82 $32.95
Cost and availability
The cost of homeowners insurance varies depending on location, home value, and coverage needs. For example, in Illinois, the average annual cost of homeowners insurance is $2,496, whereas in Chicago, the average cost is $2,736.
USAA and State Farm are two of the most popular insurance companies, but their discounts and policies differ. USAA offers insurance exclusively to military members, veterans, and their families, whereas State Farm has no membership restrictions.
According to The Zebra, State Farm has an average monthly rate of $113, whereas USAA's average rate is $127 per month. However, WalletHub reports that the average State Farm car insurance premium is $60 per month, while the average USAA premium is $41 per month.
State Farm offers a wide range of discounts, including Anti-theft, Defensive Driving, Good Driving, and Steer Clear. USAA also offers several discounts, such as Premier Driver, New Vehicle, Multi-policy, and rental car discounts.
Both companies have received more than the average number of customer complaints for insurance companies of their size, according to the National Association of Insurance Commissioners (NAIC). State Farm has a lower volume of complaints than USAA.
When considering the cost and availability of homeowners insurance, it is important to compare quotes from multiple providers and consider factors such as discounts, coverage needs, and customer satisfaction ratings.
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Customer complaints
USAA and State Farm are two of the most popular insurance companies, but their discounts and policies differ. USAA is only available to military members, veterans and their eligible family members, while State Farm has 50-state availability and no membership restrictions.
USAA has a strong reputation for taking care of its customers. This, coupled with affordable rates and a wide selection of coverage options, makes it a great choice for eligible customers. USAA's average homeowners insurance rate is $127 per month, which is below the national average. The company has also received a relatively low number of customer complaints. According to three years' worth of data from the National Association of Insurance Commissioners (NAIC), USAA had far fewer than the expected number of complaints to state regulators relative to its size for home insurance. USAA's index has seen some fluctuation over recent years, with the volume of complaints per premium dollar amount right at or moderately higher than the industry average. However, it's important to note that USAA topped the list as the best auto insurance carrier in a survey by The Zebra, winning in every category except online experience. USAA also scored higher than State Farm in the 2024 J.D. Power Auto Claims Satisfaction study, although State Farm also performed above average.
State Farm's home insurance received an average number of complaints as logged by the NAIC. State Farm's average premiums are typically higher than average, but the company offers robust policy types and plenty of add-on coverage, making it a solid option for standard homeowners and those with unique coverage needs. State Farm also has a higher user rating on WalletHub and a better customer complaint score from the NAIC. State Farm is also known for offering affordable car insurance, quality customer service, and a standard array of auto insurance options. It also offers bundling options, specialised coverage, and discount opportunities that may help drivers save money on their policies.
Both companies have 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, while USAA has issues with its customer service practices. However, both companies are in good standing with leading credit rating agencies, indicating their financial strength and claims-paying ability.
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Financial stability
USAA and State Farm are two of the most popular insurance companies, but their discounts, policies and availability differ. USAA exclusively serves current and former members of the military and their immediate families. State Farm has 50-state availability and no membership restrictions.
USAA has a strong reputation for taking care of its customers, with highly-rated digital tools, affordable rates and a wide selection of coverage options. It offers financial literacy classes to its members as well as retirement planning. USAA has an average homeowners insurance rate of $127 per month, and an average car insurance premium of $41 per month. The Zebra Customer Satisfaction Survey gave USAA a 4.6/5 rating, and it topped every category in the homeowners portion of the survey. J.D. Power also rates USAA above average in claims and customer service satisfaction. USAA has a net worth of $31 billion and has received a Superior financial strength rating by A.M. Best.
State Farm is the largest provider of private-passenger car insurance in the U.S., having sold 16% of all premiums written in 2021. It also has an award-winning mobile app that can help manage insurance and banking accounts, request roadside service, file and track claims and pay bills. State Farm has an average homeowners insurance rate of $113 per month, and an average car insurance premium of $60 per month. State Farm has received a rating of Excellent from A.M. Best, indicating its ability to pay for claims.
Both companies are 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.
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Frequently asked questions
State Farm is cheaper than USAA on average, with average rates of $113 per month compared to USAA's average of $127 per month. However, your rate will be based on personal factors and be unique to you.
Your insurance rate will depend on your previous claims history, crime rates in your area, and how close you live to a fire station. Your location, home value, and coverage needs will also affect your rate.
USAA is only available to military members, veterans, and their eligible family members.
State Farm offers a wide range of discounts to its policyholders, including Anti-theft, Defensive Driving, Good Driving, and Steer Clear discounts.
