State Farm and USAA are two of the biggest insurance companies in the United States that sell home, renters, auto, and life insurance. Both are in our list of the best home insurance companies, but they offer different types of coverage and different discounts.
To compare USAA and State Farm home insurance, the MarketWatch Guides team looked at separate reports on prices, coverage options, customer satisfaction, and the companies’ financial health.
USAA vs State Farm How Do They Compare on Home Insurance?
When it’s time to insure your most valuable asset, you want the best coverage at the lowest cost. That’s why many homeowners considering USAA and State Farm home insurance are trying to identify which insurer offers better value.
In this detailed guide, we’ll compare USAA and State Farm on key factors like
- Coverage options
- Discounts
- Claims satisfaction
- Technology
- Available discounts
- And more…
Whether you’re focused on finding the cheapest rates or highest quality service, understanding how these two insurance giants stack up can help you make the right choice. Let’s dive in to the details!
USAA Home Insurance Overview
USAA is only available to military members, veterans, and their families. But for eligible buyers, they offer:
- Average annual premium of $1,200
- A+ rating for financial strength from A.M. Best
- 95% customer satisfaction rating
- Policies available in 50 states
Coverages include typical options like dwelling, personal property, loss of use, personal liability, and medical payments to others. You can also add coverages like earthquake insurance, flood, valuable possessions, and umbrella insurance.
State Farm Home Insurance Overview
Founded in 1922, State Farm is the #1 home insurer in the U.S. Highlights include:
- Average annual premium of $1,300 nationwide
- A++ financial strength rating from A.M. Best
- 90% satisfaction rating on claims handling
- Policies sold in all 50 states
In addition to standard home insurance, State Farm offers options like scheduled personal property to cover high-value items and earthquake insurance. Their Platinum Policy provides identity theft monitoring and other enhanced benefits.
How Coverage Options Compare
While both USAA and State Farm offer standard homeowners policy types, USAA has a few unique options:
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Valuable Possessions Coverage – Covers items like jewelry, computers, and collectibles beyond traditional policy limits.
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Mastercard Benefits – USAA Visa cards provide perks like cell phone protection, rental car coverage, and extended warranties.
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Rideshare Coverage – Protects you if involved in an accident while driving for Uber or Lyft.
State Farm also provides a few optional coverages USAA doesn’t:
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Scheduled Personal Property – For high-value collections, musical instruments, and equipment
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Identity Restoration – Provides identity theft monitoring and resolution services
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Green Building Reimbursement – Extra funds to repair eco-friendly home features
For the most common types of losses like fire, theft, or liability both offer comprehensive protection. But USAA has a slight edge for covering valuables and modern sharing economy risks.
How Discounts Compare
Both insurers offer a range of discounts to reduce your premiums. Here are some key opportunities to save with each:
USAA Home Insurance Discounts
- Multi-policy – Up to 15% off for bundling auto or life insurance
- New home – 8% off if built within the last 15 years
- Security system – Up to 5% off for alarms, monitoring and sprinklers
- Paperless – Up to $20 off for enrolling in e-statements
State Farm Home Insurance Discounts
- New home – 17% off if built within the last 5 years
- Protective devices – Up to 15% off for extinguishers, alarms, surge protectors
- Multi-policy – Up to 17% when bundling auto and life insurance
- Welcome discount – Up to 25% off your first year as a new customer
State Farm offers significantly higher new home construction and multi-policy discounts. But USAA provides better ongoing savings for paperless statements and home security.
How Claims Satisfaction Compares
Both USAA and State Farm receive high marks for claims handling. But USAA pulls ahead slightly in overall satisfaction:
- USAA has a 95% satisfaction rating on claims resolutions
- State Farm scored 90% in the J.D. Power claims satisfaction survey
Feedback for USAA includes:
- “The adjuster arrived the same day I reported my kitchen fire claim. Excellent service.”
- “My totaled roof got replaced quickly after a major hailstorm.”
- “The mobile app made starting my water leak claim painless. USAA kept me updated throughout.”
Meanwhile, State Farm reviews say:
- “State Farm made the claims process smooth when a pipe burst and flooded our finished basement.”
- “I’m satisfied with how they resolved my fence damage claim, but wish it was a bit faster.”
- “The claims estimator provided a fair settlement when my tree fell during a storm.”
While State Farm also receives positive feedback, USAA pulls ahead in terms of agent responsiveness, ease of filing claims, and fast resolution with policyholders.
How Technology Compares
Insurtech improvements give homeowners more ways to manage policies. USAA offers the more advanced experience:
- USAA provides a highly-rated mobile app to view documents, pay bills, and file claims.
- You can use voice assistants like Alexa to ask policy questions.
- Their website dashboard provides real-time updates on the claims process.
State Farm’s offerings include:
- A decent mobile app for bill pay, ID cards, and starting claims
- Some smart home device integration through Google Assistant
- Email and text alerts to keep customers informed
Feedback indicates USAA’s best-in-class app and voice-enabled support make them the leader in digital insurance interactions. State Farm has improved in recent years but still lags behind.
And the Winner Is…
While State Farm is a solid option for home insurance, USAA pulls ahead in several key areas:
- More discounts like paperless and multi-policy savings
- Unique coverages for valuables, rideshares, ID theft
- Higher customer satisfaction with claims handling
- Leading technology like mobile apps and voice support
The only downside is USAA eligibility is limited compared to State Farm. But for military members and their families who can get USAA insurance, it’s typically the stronger choice over State Farm if available in your area.
Tips for Choosing Between USAA and State Farm
If deciding between these two insurance leaders, keep these tips in mind:
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Check eligibility – USAA requires military/veteran affiliation. State Farm is open to all.
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Get quotes – compare costs between both since pricing varies by location risk.
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Review risks – consider earthquake, flooding, or high-value items that need extra coverage.
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Ask about discounts – see where you qualify for the most savings.
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Compare tech – if you want advanced apps and features, USAA excels.
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Look at reviews – while both have satisfied policyholders, USAA edges out State Farm in service feedback.
By evaluating these key factors, you can determine whether USAA or State Farm offer the right fit and value for protecting your home.
The Bottom Line
When comparing USAA vs State Farm for home insurance, USAA pulls ahead for service, technology, and special coverages. Membership eligibility is more limited but overall they provide a stronger combination of rates and satisfaction if available in your state.
State Farm remains a solid national insurer with some discount advantages. But USAA has higher marks for claims, apps, and addressing the needs of today’s policyholders. Shopping around is wise, but for most military members, USAA emerges as the winning choice over State Farm if offered in your area.
USAA vs. State Farm: Customer Service and Claims
Both USAA and State Farm have lower-than-average complaint rates. State Farm has an NAIC complaint index of 0. 53 and USAA’s NAIC complaint ratio is 0. 30. Both homeowners insurance policies are below the National Complaint Index average of 1. 0, showing fewer-than-average complaints about home insurance policies. It also indicates high customer satisfaction regarding policy servicing, with both insurance companies scoring well for claims satisfaction.
State Farm has online, phone and agent-handled avenues for assistance and claims handling. A survey by MarketWatch Guides found that the average wait time for claims processing and response is 2012 days, with 2095% of claims being approved. USAA has policy servicing through a mobile app and online customer portal. Policyholders typically receive a response in 15 days, with 93% of claims approved.
According to the 2023 J.D. Power U.S. Property Claims Satisfaction study, USAA received 886 out of 1,000 points on the customer satisfaction index ranking. This is above the national average of 874 but below State Farm’s score of 829.
USAA vs. State Farm: Customer Reviews
Customer reviews for both insurance providers indicate a lack of quality customer service from local offices. However, there are also many positive comments from policyholders, especially highlighting quick claims settlements and easy-to-use technology.
Both USAA and State Farm offer comprehensive home coverage options at below-industry-average insurance rates. Both insurance companies receive strong scores for financial stability and customer satisfaction. There are, however, some differences between USAA and State Farm home insurance policies, such as the discounts and add-ons that are available. These can influence which provider is a better choice to meet your coverage needs.
USAA is our choice for a homeowner’s insurance provider for active-duty military members, veterans and their families. It only sells financial products to this group of people and knows a lot about their coverage needs and possible discounts.
State Farm has great customer service, and people are available 24 hours a day, 7 days a week to answer questions, make changes to your policy, or help you file a claim. The coverage that comes with State Farm is strong, and it includes some extras that some other companies charge extra for. For these reasons, we find that State Farm home insurance is a suitable choice for new homeowners. Compare Homeowners Insurance Policies Answer a few simple questions and well take care of the rest.
State Farm vs USAA, which is better
FAQ
Who is the number 1 home insurance company in America?
Is USAA cheaper than other home insurance companies?
Is USAA really the cheapest insurance?
Why does USAA have an F rating?
Is state Farm better than USAA?
In addition, both have good reputations for customer service. However, these insurance companies have crucial differences. USAA’s coverage is limited to military members and their families. State Farm doesn’t have replacement cost coverage included in a basic policy, unlike USAA. Which is Better?
Are USAA & State Farm Home insurance rates the same?
Nationally, USAA and State Farm have comparable rates compared to the national average. However, the companies have widely different home insurance premium costs when you look at state-specific data. Variables such as home size, dwelling age, construction type, location and your credit score determine your insurance rates.
Do USAA and State Farm offer home insurance discounts?
USAA and State Farm offer discounts that may help you save on your home insurance costs. These include savings opportunities commonly offered by home insurers, such as discounts for bundling home and auto coverage and installing protective devices like fire alarms and home security systems.
How much does USAA home insurance cost?
According to data from Quadrant Information Services, the average USAA home insurance premium is $2,196 per year, compared to $2,215 from State Farm. Both amounts are below the national average of $2,417. Discounts for bundling home and auto insurance, installing safety features and purchasing a new home can help you get the best rates.