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Last updated on May 19, 2020

Geico vs. State Farm

A head-to-head comparison of two popular national car insurance providers ​
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The auto insurance market in the United States is now worth more than $288 billion and continues to see steady growth. But an expanding market means more provider options—how do drivers decide which company best meets their vehicle insurance needs both upfront and over time?

In our GEICO vs. State Farm review, we’ll take a look at two well-known auto insurance operators and see how they stack up. Which discounts do they offer? How do they compare on claims and customer service? What other features are available?

Here’s what you need to know.

GEICO – 4.0/5


Best Digital Experience
Geico

GEICO offers extensive discounts for drivers along with a great digital and mobile experience

Pros 

  • Huge variety of discounts
  • Great mobile app
  • Top rating for purchasing experience customer satisfaction

Cons

  • Limited access to local agents
  • Some policies underwritten by third parties
  • No gap insurance

State Farm – 3.8/5


Best Ride-Share Coverage
State Farm
State Farm


State Farm offers better-than-average customer service along with comprehensive rideshare and rental coverage

Pros

  • More than 19,000 agents nationwide
  • Better-than-average customer service
  • Great coverage for rideshare drivers

Cons

  • Fewer discounts than similar providers
  • Higher than average premiums for coverage
 J.D. Power Insurance Shopping Study ScoreJ.D. Power Auto Claims Satisfaction Study ScoreAM Best financial strength rating
Geico867/10003/5A++
State Farm860/10003/5A++

Data effective 05/08/20

Discounts 

When it comes to car insurance, GEICO and State Farm offer similar options for coverage, deductibles, and limits. Drivers can expect their premiums to vary based on driving history, accident records, and any fines or infractions they’ve accrued. Location also makes a difference—insurance models vary by state, meaning the type and amount of insurance you need depends on where you live.

The biggest difference between GEICO and State Farm? Discounts. Both offer a variety of discounts for clients, but compared side by side, it’s clear that GEICO comes out ahead.

This isn’t to say that State Farm doesn’t offer great discounts. For example, the company’s Drive Safe & Save program uses data from drivers’ smartphones and OnStar services to calculate discounts based on how safely they drive. And new drivers under 25 can save with Steer Clear if they haven’t had any at-fault accidents or moving violations in the past three years.

GEICO meanwhile, offers a host of discounts. These include a 25% cost reduction for airbags, a 25% discount for anti-theft systems, a 15% new vehicle discount, 25% savings for multi-vehicle coverage, and even a 1% discount for having daytime running lights.

Claims and Customer Service 

Both GEICO and State Farm score well in purchase experience satisfaction and overall customer and claims satisfaction. In fact, GEICO takes the top spot in the J.D. Power 2020 U.S. Insurance Shopping Study with a score of 867/1,000, while State Farm ranks at 860, which matches the national average. 

In the J.D. Power 2019 U.S. Auto Claims Satisfaction Study, meanwhile, both companies earn a 3 out 5 Power Circle Rating, which is about average. Both companies have an “A+” rating with the Better Business Bureau (BBB), but it’s worth noting that GEICO has approximately twice the number of complaints when compared to State Farm.

Both auto insurance providers offer coverage across all 50 states, and while State Farm leverages independent agents to issue policies, the company has more than 19,000 agents nationwide, making it easy to find an insurance expert.

Other Features 

While GEICO stands out for above-average discounts, the company also pushes ahead of the pack when it comes to its mobile application and digital support. The app is consistently well-rated across both Google Play and the Apple App Store and the company’s online service is second to none. If users need help with policy questions or need to start a claim, GEICO’s app makes it fast and easy to get in touch with an insurance professional.

State Farm also has a well-reviewed mobile application but pulls past GEICO in rental car coverage and rideshare insurance. Almost all vehicle policies issued by State Farm automatically include coverage for rental vehicles, something that’s an add-on with most other providers. State Farm also makes it easy to add rideshare coverage if you’re an Uber or Lyft driver—without taking out a new policy.  

Further Reading

FAQ

Is GEICO or State Farm better?

The answer depends on what you need. GEICO offers a great mobile and online experience, while State Farm offers superior rental and rideshare coverage.

Does GEICO really offer the cheapest insurance?

GEICO offers a wide variety of discounts for everything from airbags to car alarms and daytime running lights, in turn, reducing the premiums paid by clients.

Is State Farm a good insurance company? 

While State Farm’s standard offerings are similar to GEICO’s, the company offers better-than-average customer service and easy access to more than 19,000 agents nationwide.

About the Authors

Doug Bonderud is an award-winning freelance writer with the unique ability to translate complex financial concepts into approachable, actionable content that both captures reader interest and delivers key brand messaging.