USAA vs. State Farm: Home Insurance Comparison

USAA and State Farm homeowners insurance rank are two of the top five insurers in our rankings. They scored well for affordability and financial stability, with USAA having a slight edge over State Farm on customer satisfaction and premium affordability.

USAA is known for its exceptional customer service and competitive rates for military members and families, averaging around $1,966 per year. This insurer offers customers a range of tailored coverages and discounts.

State Farm, the largest home insurance provider in the U.S., has strong financial backing and a broad network of agents to offer support. The company offers a wider range of coverage and discount options, enabling policyholders to customize their coverage as needed.

Learn more about these insurers through MoneyGeek’s comparative analysis.

Although both companies fare well in all categories, USAA scored higher overall for having perfect satisfaction and stability scores. The company offers coverage in 50 states and Washington, D.C. State Farm, on the other hand, provides more coverages and discounts. The insurance company operates in 48 states.

MoneyGeek’s analysis of each company’s affordability shows that USAA is cheaper. USAA’s average baseline premium, at $1,966 per year, is more affordable by an average of $172 than State Farm’s policies.

Keep in mind that the average cost of home insurance can depend on various personal factors such as your credit history, your home’s location and the potential cost of rebuilding your home.

When calculating rates, insurance companies consider various factors. A customer’s home location and the dwelling coverage amount have the most impact on rates.

Your dwelling coverage is a key component in your homeowners insurance policy and should be enough to rebuild or repair your home if it’s damaged. Choosing a coverage amount that provides sufficient protection for you and your home is important.

USAA Homeowners Insurance is typically more affordable than State Farm for a range of dwelling coverage amounts, starting at $100K and going up to $3M. As the level of dwelling coverage increases, the price difference between the two companies becomes more noticeable.

The cost of homeowners insurance can differ significantly based on the state where you reside. For example, USAA's average baseline premium is the most affordable in West Virginia at $742 per year, while it charges its highest premiums of $3,451 per year in South Carolina. State Farm's policies, on the other hand, are the least expensive in Rhode Island at $765 per year and the most expensive in Texas at $3,994.

Location can significantly impact insurance costs, and comparing premiums across states can help you make an informed decision about your coverage options. Use MoneyGeek’s table below to determine how much USSA and State Farm homeowners insurance costs in your state.

While finding a cheap insurer is cost-effective, spending more for better customer service can make a difference when filing or processing a claim. USAA has a perfect customer satisfaction score of 5 out of 5, while State Farm scores 4 out of 5. Since USAA policies are cheaper than State Farm’s, customers enjoy exceptional service at an affordable cost.

Homeowners insurance typically includes three primary coverages: dwelling, personal property and liability. Optional add-ons are available if you want additional protection beyond these basics.

State Farm offers a broader range of coverage options, with 12 different add-ons available to customers. In comparison, USAA offers only three optional coverages.

USAA offers earthquake and home rental coverage as options. State Farm coverages include identity theft, extended reimbursement, scheduled personal property, equipment breakdown, risk consulting and service line.

The coverage information presented here is based on MoneyGeek’s data from the companies’ websites. Some coverages may or may not be available in your location.

USAA offers a range of discounts to help lower insurance premiums. Protective device discounts are available for homes with security systems or other protective devices, while insurance bundling discounts are available when you combine your home insurance policy with another type of insurance policy. USAA also offers claims-free, homebuyer, and green home discounts, to reward policyholders with a history of responsible behavior or who have taken steps to make their homes more energy-efficient.

Similarly, State Farm offers claims-free, protective device and insurance bundling discounts. It also provides new home, home renovation, continuously insured, and roofing material discounts, which reward policyholders for various responsible behaviors or property improvements.

State Farm offers more financial incentives in the form of discounts than USAA. State Farm has a new home discount for those who have recently built or purchased a new home. Because newer homes have newer systems and structures, they are less likely to encounter problems or failures, resulting in fewer insurance claims. Those who have recently renovated their home can also score a discount.

MoneyGeek collected this data from the companies’ websites. We thoroughly research each insurer’s offerings, but companies may have discounts that aren’t advertised.

MoneyGeek also offers recommendations for the best homeowners insurance if USAA and State Farm don’t meet your needs.

Remember that various factors impact the cost of homeowners insurance, including how much it costs to repair your home, its location, coverage type and more. Use MoneyGeek’s homeowners insurance calculator to get a more accurate estimate of your premium.