At a Glance: USAA vs. State Farm
State Farm is our high decide for brand new householders. It presents complete protection, lower-than-average insurance coverage charges and 24/7 buyer help, backed by a powerful document of monetary stability.
USAA is our high decide for navy members. It presents home insurance coverage to active-duty navy members, veterans and their households. Despite restricted low cost choices, its insurance coverage premiums are beneath the nationwide common. USAA additionally has a below-average variety of buyer complaints to the National Association of Insurance Commissioners (NAIC).
Compare each corporations at a look utilizing the chart beneath:
*Premiums are based mostly on information obtained from Quadrant Information Services. For comparability, the nationwide common cost for home insurance coverage is $2,417 per 12 months.
**Percentage of claims accepted is predicated on our 2023 survey of 1,500 policyholders who’ve filed a householders insurance coverage declare with the suppliers on this evaluation. Your expertise will differ.
USAA vs. State Farm: Cost and Discounts
According to information from Quadrant Information Services, the typical USAA home insurance coverage premium is $2,196 per 12 months, in comparison with $2,215 from State Farm. Both quantities are beneath the nationwide common of $2,417.
Discounts for bundling home and auto insurance coverage, putting in security options and buying a brand new home may also help you get one of the best charges. State Farm presents barely higher reductions than USAA, with the potential to avoid wasting greater than $1,000 on home and auto insurance coverage charges by bundling.
Cost by State
Nationally, USAA and State Farm have comparable charges in comparison with the nationwide common. However, the businesses have extensively totally different home insurance coverage premium prices whenever you have a look at state-specific information.
Variables reminiscent of home measurement, dwelling age, building sort, location and your credit score rating decide your insurance coverage charges. Requesting insurance coverage quotes is the easiest way to get a transparent image of how a lot you’ll pay for a house owner’s coverage.
Home Insurance Discounts
State Farm and USAA insurance coverage make it simple to decrease premiums with reductions, however State Farm presents extra alternatives for important financial savings. You can save greater than $1,000 by bundling your home and automobile insurance coverage coverage with State Farm. The identical mixture might solely decrease your USAA premium by 10%, which can be about $200 in financial savings based mostly on the corporate’s nationwide common premium.
USAA Discounts
- Multi-policy bundling
- Claims-free
- Connected home
- Installed safety gadgets
State Farm Discounts
- Bundling
- Claims-free
- Home safety and anti-theft gadgets
- Impact and fire-resistant roofing
- High deductible
- Automatic sprinklers/hearth suppression machine
USAA vs. State Farm: Customer Service and Claims
Both USAA and State Farm have lower-than-average grievance charges. State Farm has an NAIC grievance index of 0.53 and USAA’s NAIC grievance ratio is 0.30. Both householders insurance coverage insurance policies are beneath the National Complaint Index common of 1.0, displaying fewer-than-average complaints about home insurance coverage insurance policies. It additionally signifies excessive buyer satisfaction relating to coverage servicing, with each insurance coverage corporations scoring properly for claims satisfaction.
State Farm has on-line, cellphone and agent-handled avenues for help and claims dealing with. The common wait time for claims processing and response is 12 days, with 95% accepted based mostly on a 2023 MarketWatch Guides survey. USAA has coverage servicing by way of a cell app and on-line buyer portal. Policyholders usually obtain a response in 15 days, with 93% of claims accepted.
According to the 2023 J.D. Power U.S. Property Claims Satisfaction examine, USAA obtained 886 out of 1,000 factors on the client satisfaction index rating. This is above the nationwide common of 874 however beneath State Farm’s rating of 829.
USAA vs. State Farm: Customer Reviews
Customer critiques for each insurance coverage suppliers point out an absence of high quality customer support from native places of work. However, there are additionally many constructive feedback from policyholders, particularly highlighting fast claims settlements and easy-to-use know-how.
USAA Reviews
“I really like USAA — it serves veterans. The mobile app is amazing. Intuitive and easy to use. Every time I talk to an agent they are friendly and knowledgeable.” —Richard Pedro by way of Trustpilot
“I have been a member for over 30 years and have been happy with [USAA’s] service. I have auto and home insurance and do my banking with [USAA]. I have even taken out a USAA loan. I have never had a problem with any of its services. [USAA] has helped when I needed collision repair, roof replacement and when a company said it had not received payment, [USAA] assumed responsibility. ” —GA Thomas by way of Trustpilot
“A recent hail storm hit our neighborhood. Very large hailstones rained down for 15 minutes. I contacted my friend’s roofing company to see if I should file a claim. Yes, extensive damage on a roof less than four years old. I had paid out of pocket for a better roof, plus gutters and gutter guards. The inspector showed up and said some damage. USAA sent me a check for $3,500 [with] no explanation of what it covered. When the roofer looked at the letter he asked what it was supposed to cover, no explanation.” —Sky H. by way of Trustpilot
State Farm Reviews
“I can’t express how pleased l am with State Farm in Texas. I have been a client of this specific office for about seven years and couldn’t ask for a more responsive and kind group of people than those there. I started with one car, then went to two [and] recently added my home. State Farm is extremely responsive if there is a problem.” —Cynthia O. by way of the Better Business Bureau (BBB)
“Very good experience with NYC agent [who] was very helpful!!” —Heike Ok. by way of the BBB
“[State Farm] would like to patch our siding instead of replace [it]. We have been customers for 20 years and have only ever had one claim. The new siding looks new and the old siding is faded and stained. [State Farm] refuses to listen or compromise at all. Every time I call they ask me to send pictures, which I do. Then [State Farm] says it doesn’t look so bad. My house is a $600,000 plus investment [and] I don’t think a patchwork is acceptable.” — Alexandra S. by way of the BBB
The Bottom Line
Both USAA and State Farm provide complete home protection choices at below-industry-average insurance coverage charges. Both insurance coverage corporations obtain robust scores for monetary stability and buyer satisfaction. However, you’ll observe a couple of variations when evaluating USAA and State Farm householders insurance coverage insurance policies, reminiscent of available reductions and endorsements. These can affect which supplier is a more sensible choice to fulfill your protection wants.
USAA is our alternative for a house owner’s insurance coverage supplier for active-duty navy members, veterans and their households. It solely presents monetary merchandise to this market phase and has specialised information of protection wants and potential reductions.
State Farm presents high quality customer support, with representatives available across the clock to reply questions, make coverage changes or enable you to file a declare. Standard protection with State Farm is powerful and features a few advantages that different insurance coverage corporations provide for an added charge. For these causes, we discover that State Farm home insurance coverage is an appropriate alternative for brand new householders.
***AM Best scores are correct as of July 2023.