State Farm and Geico are two of the biggest names in the car insurance space. State Farm® is the largest property and casualty insurance company in the U.S., issuing auto policies since 1922. It’s praised for its customer service and easy-to-navigate online application and claims process. In business since 1936, Geico draws praise for its low rates and nationwide availability.
The two companies offer many of the same benefits, but there are some key differences you should keep in mind when shopping for car insurance.
State Farm Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
State farm is one of the largest auto insurers based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Pros
- High customer satisfaction
- Largest car insurance company in the U.S.
- Accident forgiveness
Cons
- High volume of complaints
- Doesn’t offer gap insurance
- Premiums higher than average
Geico Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Pros
- Lowest average rates
- Inclusive coverage options, including high-risk drivers
- Available nationwide
Cons
- High premiums for high-risk drivers
- Fewer branches for in-person services
- Doesn’t offer gap insurance
State Farm vs. Geico Car Insurance
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State Farm vs. Geico pros and cons
State Farm pros and cons
Pros
- Can buy policy and file claims online
- Lots of discounts available
- Safe driving discount worth up to 30% off
Cons
- Higher-than-average rates
- Low score from the Better Business Bureau
- Accident forgiveness requires nine years of being a customer
Read more: State Farm Auto Insurance Review 2024
Geico pros & cons
Pros
- Low average rates
- Available nationwide
- Affordable rates for high-risk drivers
- Offers non-owner policies and SR-22 insurance
Cons
- Limited number of agents
- No gap insurance or rideshare insurance
- Below-average customer service scores
Read more: Geico Auto Insurance Review 2024
State Farm vs. Geico: Coverage
| Coverage | State Farm | Geico |
|---|---|---|
| Accident forgiveness | No | yes |
| New car replacement | No | No |
| Gap insurance | Payoff Protector pays the difference between policy payout and remaining loan for cars financed through State Farm. | No |
| Underinsured motorist/uninsured motorist (UM/UIM) | Yes | Yes |
| Mechanical breakdown insurance | No | Yes |
| Medical payments (MedPay) | Yes | Yes |
| New car replacement coverage | No | No |
| Non-owner insurance | Yes | Yes |
| Pay-per-mile | All states except California, Massachusetts, New York and Rhode Island | 28 states, District of Columbia* |
| Personal injury protection (PIP) | Yes | Yes |
| Roadside Assistance | Yes | Yes |
| Rental car | Yes | Yes |
| Rideshare insurance | Yes | No |
| Travel expense | Yes | No |
| Vanishing deductible | No | Yes |
State Farm offers travel expense reimbursement, which Geico does not. It pays up to $500 for food, lodging and related costs if your car breaks down more than 50 miles from home.
Geico offers optional mechanical breakdown insurance which covers repairs if your car breaks down, needs replacement parts or has other mechanical issues.
State Farm vs. Geico: Price
Geico has the advantage on price: Monthly premiums for full coverage average $164 with Geico, according to Bankrate data, well below both State Farm’s $219 a month and national average of $193 per month. Its low rates landed Geico on our list of best low-cost insurers.
| State Farm | Geico | |
|---|---|---|
| Full coverage | $2,624 | $1,984 |
| Minimum coverage | $827 | $552 |
| Teen* | $4,900 | $3,810 |
| Young adult* | $3,085 | $2,315 |
| Senior* | $2,446 | $2,090 |
| Bad credit | $9,043 | $2,905 |
| Speeding Ticket | $3,051 | $2,464 |
| At-fault accident | $3,375 | $2,841 |
| DUI | $4,762 | $4,588 |
Source: Bankrate data from June 2024. Teen driver quote assumes 16-year-old with full coverage on married parents’ policy. Young adult driver quote assumes a 25-year-old on their own full coverage policy. Senior quote assumes 70-year-old with full coverage.
State Farm vs. Geico: Discounts
Discounts can significantly lower your premiums and should definitely be considered when pricing a policy. Not all discounts are available in all states, however, and some may not be combined.
| Discount | State Farm | Geico |
|---|---|---|
| Accident-free | Yes, up to 25% | Yes, up to 22% for five years |
| Airbags | No | Yes, up to 23% |
| Anti-lock brakes | No | Yes, up to 5% |
| Anti-theft | Yes | Yes, up to 23% |
| Automatic payment | No | No |
| Bundling | Yes, up to 17% | Yes, discount varies |
| Daytime running lights | No | Yes, up to 3% |
| Defensive driving course | Yes, discount varies | Yes, discount varies |
| Driver training | Yes, discount varies | Yes, discount varies |
| Employees/members | No | Yes, varies |
| Good student | Yes, up to 25% | Yes, up to 15% |
| Federal workers | No | Yes, up to 12% |
| Military | No | Yes, up to 15% |
| Multiple vehicle | Yes, up to 20% | Yes, up to 25% |
| Multiple policy | Yes, up to 17% | Yes, discount varies |
| New vehicle | No | Yes, up to 15% |
| Paperless | Not disclosed | No |
| Passive restraint | Up to 40% on medical-related coverage for some cars | Yes |
| Pay-in-full | Not disclosed | Not disclosed |
| Save-driving app | Yes, up to 30% | Yes, up to 25% |
| Student away at school | Yes, not disclosed | No |
| Teacher | No | Available with some professional associations |
Both companies have usage-based insurance discounts that reward good driving habits. But State Farm‘s Drive Safe & Save can earn you 30% off, while Geico‘s DriveEasy can only save drivers up to 25%.
In addition, DriveEasy is available in fewer states and poor scoring can result in your rates increasing.
Geico does have a military discount that could be worth up to 15% off, as well as lower rate options for teachers, federal employees and members of certain organizations.
State Farm vs. Geico: Customer service
State Farm comes out on top for customer satisfaction: It was among the top three insurers in six out of the 11 regions surveyed in J.D. Power’s 2024 auto insurance study. It came in fourth place out of 17 in a separate survey on insurance shopping and fifth out of 24 for claims satisfaction.
Geico, meanwhile, rated below average in most regions in J.D. Power’s auto insurance study and scored poorly in the surveys on insurance shopping and claims satisfaction.
According to the National Association of Insurance Commissioners, State Farm received an average number of complaints for a provider of its size. However, it received a C- from the Better Business Bureau which cited unresolved complaints.
Geico also received the average number of complaints but received an A+ from the BBB, the organization’s highest grade.
Both State Farm and Geico earned an A++ (Superior) for financial strength from A.M. Best, the agency’s highest grade and a strong indicator of their ability to pay out on policyholders’ claims.
State Farm vs. Geico: Which is better?
Choosing the right auto insurance depends on your priorities: State Farm has a much stronger record with customer service and additional coverage options Geico doesn’t, like rideshare insurance and payoff protection (a form of gap insurance).
If you’re looking to save money, though, Geico’s shines brighter. Its average rates are lower in just about every category, especially for teens and drivers with bad credit.
The best way to decide between insurers is to get quotes for the same coverage and compare premiums and discounts to see which is the better fit.
FAQs
Which is cheaper, Geico or State Farm car insurance?
According to data CNBC Select gathered from Bankrate, Geico offers lower rates than State Farm.
Can I buy car insurance online with Geico or State Farm?
Both Geico and State Farm offer the ability to get quotes for and buy an auto insurance policy online quickly and easily.
What other kinds of insurance do State Farm and Geico sell?
Do Geico and State Farm have in-person insurance agents who can help me?
Both Geico and State Farm offer in-person agents to help you with getting a policy and even file a claim if needed. Geico even offers the option to search for Spanish-speaking agents on its site.
Who is State Farm car insurance right for?
State Farm is a good fit for those who want quality customer service and don’t mind paying a little bit more for it. While it doesn’t offer the cheapest car insurance rates on the market, it’s earned higher marks for customer service than some other companies.
Who is Geico car insurance right for?
Those looking for cheap car insurance might find that Geico is a good fit. The brand’s low prices can be especially useful for those who would usually receive higher rates, like young adult and teen drivers or those with accidents on their records.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of pet insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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