Everything You Need to Know

Comparing USAA vs. State Farm insurance rates can help you get some of the lowest rates in the country. Both companies offer the full spectrum of insurance policies and provide a wide range of discounts. In this article, we provide background information about these two major insurance companies.

What Is USAA Homeowners Insurance?

USAA is a major provider of insurance services, including homeowners and auto insurance. The company serves United States military and reserves members and veterans and their families. USAA is based in San Antonio and has about 34,000 employees globally, a quarter of which are veterans or military spouses. The company serves about 12.8 million customers and has satellite offices all over the country. It also operates in London, Frankfurt, and Luxembourg.

What Services Does USAA Offer?

Besides auto and homeowners insurance, USAA also provides life, health, pet, personal property, and small business insurance, says USNews. The company also operates USAA Bank, which provides a full array of financial products and services, including savings and checking accounts, loan services, mutual funds, and a nationwide ATM network. You can also get retirement planning and investment advice from one of their financial advisors.

USAA is active in all 50 states and Washington, D.C. However, availability of certain products and services may vary by location. Members of USAA receive annual dividends. It has a mobile app that allows members to access their accounts and use a wide range of insurance products and services. However, USAA does not use independent agents to sell its insurance policies.

What Is State Farm Homeowners Insurance?

State Farm is a national insurance provider that operates five businesses that provide dozens of insurance, banking, and investment products and services. The company has about 58,000 employees and 19,000 independent agents. They help the company service its almost 83 million policies and accounts all over the United States. The Bloomington, Illinois-based company has offices all over the country, including corporate offices in Atlanta, Dallas, and Phoenix. AM Best has rated it a stellar A++ for financial strength.

What Services Does State Farm Offer?

State Farm offers homeowners, property, life, disability, and liability insurance policies. It also provides renters, condo, income property, and personal property, farm, ranch, and manufactured homes insurance policies. You can also buy a wide range of add-on coverages separately or as part of a bundle.

Where Can You Buy State Farm Insurance?

USNews says that you can buy State Farm insurance policies from a network of independent agents all over the country. You can get quotes and search for local agents on the company’s website.

Which Company Is Better According to USNews?

In USNews’ 2021 ratings for the Best Homeowners Insurance Companies, USAA came second after Amica while State Farm placed fourth on the list. AM Best gave both companies a top A++ for financial stability. However, you can only use USAA if you are enlisted in the U.S. military, are part of a military family, or are a veteran. Meanwhile, anybody can use State Farm’s insurance policies.

USAA and State Farm provide members all types of insurance policies, including homeowners, auto, and life insurance. Customers can bundle several policies to earn discounts.

Besides homeowners insurance, both insurers provide specialized coverage for other types of dwellings and you can also customize your policies. While USAA members buy policies directly by phone and via the company website, State Farm uses local agents. However, you can use their mobile apps to get information about policies, make payments, and file claims.

Do USAA and State Farm Cover Mold Damage or Removal?

USAA’s standard homeowners insurance policy covers the testing, treatment, and removal of mold. Meanwhile. State Farm’s standard homeowner insurance policies provide a minimum of $10,000 to cover mold and fungus damage.

Do USAA and State Farm Cover Roof Leaks?

Both insurance companies cover the cost of repairing water damage caused by a leaking roof, depending on the cause. For example, both companies will cover the cost of repairing roof damage from a hurricane, but they won’t cover leaks caused by lack of maintenance.

Do USAA and State Farm Cover Termite Damage?

Like most homeowners insurance policies, State Farm’s does not cover termite damage. USAA may cover termite damage, although such coverage often comes with limits.

Do USAA and State Farm Cover Water Damage?

Both USAA and State Farm standard homeowners insurance policies typically cover water damage resulting from a malfunction inside the property, such as a leaking pipe. The insurers don’t cover water damage from clogged drains, faulty sump pumps, and other maintenance issues. USAA and State Farm sell separate policies to cover flood damage.

Do USAA and State Farm Bundle Homeowners Insurance?

Both USAA and State Farm allow you to bundle your homeowners insurance with other insurance policies. Doing so will often save you money.

Which Insurance Company Is Better If You Have Very Poor Credit?

USAA may be the better choice if your credit score is very poor, says The Zebra. If your credit score is lower than 580, USAA’s rates are typically better than State Farm’s. USAA also offers drivers with an exceptional credit score (800 or higher) annual auto rates $420 cheaper than State Farm.

What Are the Average Annual Premiums for Drivers By Credit Score?

Here are the average annual premiums for USAA based on credit level, according to information from The Zebra:

  • Very Poor (300-579) – $2682
  • Fair (580-669) – $1247
  • Good (670-739) – $1057
  • Very Good (740-799) – $910
  • Exceptional (800-850) – $840

    Here are the average annual premiums for State Farm based on credit level, according to data from The Zebra:

    • Very Poor (300-579) – $3522
    • Fair (580-669) – $2003
    • Good (670-739) – $1613
    • Very Good (740-799) – $1451
    • Exceptional (800-850) – $1260

      Which Insurance Company Is Better for High-Risk Drivers?

      USAA is a better insurer than State Farm if your driving record has speeding tickets, DUIs, reckless driving citations, or an at-fault accident. However, be sure to compare rates from multiple insurance providers to get the best deals.

      Check out this guide if you need additional information, resources, or guidance on car insurance.


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