Geico vs. State Farm: Which is Better for Car Insurance?
- Expertise: Auto insurance, home insurance and renters insurance
- Education: University of California-Berkeley (BA in History)
Rob Bhatt is a licensed insurance agent and joined the staff of Lending Tree in 2021. Previously, he spent more than 20 years writing for and editing regional publications in California, Nevada and Washington. Rob enjoys helping readers understand how different coverages work so they can make informed purchasing decisions, and he specializes in producing research-backed content for LendingTree about auto, home and renters insurance. His work has been cited by ABC, Business Insider, MSN and Yahoo.
State Farm has cheaper car insurance quotes than Geico for most drivers. However, Geico is often a better deal for military members and federal employees.
Geico vs. State Farm: Which is better for car insurance?
State Farm is a better car insurance company than Geico, with some exceptions. State Farm has cheaper rates than Geico for most drivers.
Geico’s discounts for military members and federal employees make it a good option if you’re in one of these groups. Geico is also cheaper than State Farm for drivers with bad credit.
J.D. Power gives State Farm higher scores than Geico for overall satisfaction and claims satisfaction. However, Geico has a slightly better complaint rating from the National Association of Insurance Commissioners (NAIC).
Geico
| Pros | Cons |
|---|---|
| Discounts for military, federal employees and other groups | More expensive than State Farm for most drivers |
| Cheaper quotes than State Farm for drivers with bad credit | Lower satisfaction ratings than State Farm |
| Slightly better NAIC complaint rating than State Farm | Does not offer its own home or renters insurance |
| A++ rating from A.M. Best |
State Farm
| Pros | Cons |
|---|---|
| Cheaper quotes than Geico for most drivers | Does not offer military discounts |
| Better customer satisfaction ratings than Geico | Accident forgiveness not available |
| Offers its own home and renters policy for bundling | Slight lower NAIC complaint rating than Geico |
| A++ rating from A.M. Best | High rates for drivers with bad credit |
Is State Farm cheaper than Geico?
State Farm has cheaper average auto insurance rates than Geico for good drivers, those with a prior incident and teens. Geico is cheaper for drivers with bad credit.
Cheapest liability and full-coverage quotes: State Farm
State Farm’s quotes are cheaper than Geico’s for liability car insurance and full-coverage insurance.
State Farm charges an average of $597 a year for liability insurance, or $50 a month. This is 18% less than Geico’s rate of $727 a year.
State Farm’s quotes for full-coverage car insurance average $1,487 a year, or $124 a month. This is 23% less than Geico’s rate of $1,937 a year.
| Company | Liability annual rate | Full-coverage annual rate |
|---|---|---|
| State Farm | $597 | $1,487 |
| Geico | $727 | $1,937 |
| U.S. average | $772 | $1,970 |
Since auto insurance rates vary by customer, we recommend comparing quotes from multiple companies when you shop.
Cheapest quotes for a bad driving record: State Farm
State Farm has cheaper auto insurance quotes than Geico for drivers with a ticket, accident or driving under the influence (DUI).
State Farm charges drivers with a prior speeding ticket an average of $1,616 a year for full coverage, or $135 a month. This is 35% less than Geico’s rate of $2,493 a month.
State Farm’s rates for drivers with an at-fault accident average $1,843 a year, or $154 a month. Geico charges these drivers $3,341 a year, or 81% more than State Farm. State Farm’s rate for drivers with a DUI is only 4% less than Geico’s rate.
| Company | Ticket annual rate | Accident annual rate | DUI annual rate |
|---|---|---|---|
| State Farm | $1,616 | $1,843 | $4,402 |
| Geico | $2,493 | $3,341 | $4,584 |
| U.S. average | $2,427 | $2,930 | $3,626 |
Cheapest quotes for drivers with bad credit: Geico
Geico has cheaper car insurance quotes than State Farm for drivers with bad credit. Geico’s rates for drivers with bad credit average $3,093 a year for full coverage, or $258 a month. This is 45% less than State Farm’s rate of $5,654 a year.
| Company | Bad credit annual rate |
|---|---|
| Geico | $3,093 |
| State Farm | $5,654 |
| U.S. average | $3,705 |
In most states, insurance companies factor your credit history and usage into your insurance rates. However, eight states, including California, Massachusetts and Michigan, don’t allow this.
Cheapest auto insurance quotes for teens: State Farm
State Farm has cheaper auto insurance quotes than Geico for teen drivers. For example, State Farm charges 18-year-olds $1,811 a year for liability insurance, or $151 a month. This is 11% less than Geico’s rate of $2,044 a year.
Geico’s full-coverage rate for 18-year-olds is 22% higher than State Farm’s rate.
| Company | Liability annual rate | Full-coverage annual rate |
|---|---|---|
| State Farm | $1,811 | $4,128 |
| Geico | $2,044 | $5,048 |
| U.S. average | $2,433 | $5,824 |
Geico vs. State Farm: Ratings and reviews
State Farm has better car insurance satisfaction ratings than Geico from J.D. Power.
State Farm handily beats the industry averages for overall satisfaction and claims satisfaction. Geico’s ratings in both areas are near industry averages.
Geico has a slightly better auto insurance complaint rating than State Farm from the NAIC.
The NAIC reviews confirmed complaints, which are complaints that lead to a finding of fault. Both companies have fewer confirmed complaints than average for their size.
| Rating | Geico | State Farm | Industry average |
|---|---|---|---|
| Overall satisfaction (higher is better) | 818 | 833 | 820 |
| Claims satisfaction (higher is better) | 882 | 891 | 878 |
| Complaint rating (lower is better) | 0.74 | 0.78 | 1.0 |
Sources: J.D. Power, NAIC
Geico vs. State Farm: Best car insurance coverages
Geico and State Farm both offer all the typical car insurance coverages, with only a few extras.
The typical coverages both companies offer include:
- Liability
- Collision
- Comprehensive
- Uninsured motorist
- Medical payments and/or personal injury protection.
Geico’s extras include:
- Accident forgiveness protects you from a rate increase after your first accident.
- Mechanical breakdown insurance (MBI), which is similar to an extended warranty. It covers breakdowns of your car’s mechanical and electrical systems for up to seven years.
State Farm’s extras include:
- Rideshare insurance for those who use a personal vehicle to drive for rideshare companies like Uber and Lyft.
- Travel expense coverage kicks in for vehicles damaged more than 50 miles from home.
Unlike many of their competitors, neither Geico nor State Farm offers gap insurance.
Car insurance coverage options
| Coverage | Geico | State Farm |
|---|---|---|
| Accident forgiveness | Yes | No |
| Mechanical breakdown | Yes | No |
| Rideshare insurance | No | Yes |
| Travel expenses | No | Yes |
| Gap insurance | No | No |
Geico vs. State Farm: Best discounts
In addition to the most common car insurance discounts, Geico and State Farm each offer unique ways to save.
Bundling
Most companies offer a generous discount for bundling your car insurance with a homeowner or renters policy. State Farm’s bundling discounts extend to each policy. Geico only gives bundlers a discount on car insurance. It offers homeowner and renters policies from other companies.
Safe driving
You can also get a big discount if you sign up for Geico’s DriveEasy or State Farm’s Drive Safe & Save program. Both use a smartphone app to monitor your driving. Driving safely gets you future discounts when you renew.
With Geico’s program, your rates may go up if the app detects unsafe driving. State Farm’s program won’t increase your rates.
Young drivers
Both companies offer a good student discount to young drivers with good grades.
State Farm also offers a discount to young drivers who complete an accredited driver training program. Young drivers with at least three years of incident-free driving can get another discount by completing State Farm’s Steer Clear program.
Defensive driver
Both companies offer a discount to mature drivers who attend an approved defensive driving class.
Military and government employees
Geico offers discounts to active and retired members of the military, as well as guardsmen and reservists.
Geico also offers discounts to federal employees. If you belong to an organization or association in Geico’s affiliate program, you’ll get a discount, too.
State Farm does not offer these types of discounts.
Frequently asked questions
Geico’s offers homeowners insurance from several national and regional companies. These include AIG, The Hartford, Lemonade, Liberty Mutual, Narragansett Bay and Travelers.
No. State Farm does not offer accident forgiveness.
Geico offers accident forgiveness for free after you meet certain driving milestones. You can also add it to your policy before then for a small fee.
State Farm is generally good at paying car insurance claims. Its auto claims satisfaction rating from J.D. Power is well above the industry average. Its complaint rating from the NAIC is also better than average.
Geico began in 1936 as the Government Employees Insurance Company. It initially catered to federal employees and military officers and still offers discounts to these groups.