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State Farm and Geico are two of the largest auto insurance companies in the United States and have a lot of experience supporting customers. They each have a lot to offer, but how does State Farm compare to Geico? Here’s how they compare to each other.
Which is better: State Farm or Geico?
Geico and State Farm both have strengths and weaknesses that can affect which one is best for you.
Geico’s main strengths are overall affordable rates and a low level of complaints. Geico’s weakness is its lean range of hedging offerings.
State Farm also has a low level of complaints. State Farm offers reasonable rates, but average prices are higher than Geico for certain types of drivers, making it a weakness in this comparison. State Farm is also somewhat lacking in coverage options.
State Farm and Geico did well in our rating of the best car insurance companies. Geico earned the highest score of 5 stars out of State Farm’s 4.5 stars. Geico received higher ratings due to its lower car insurance rates for most types of drivers.
state farm
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Advantages and disadvantages
- Advantageous rates for drivers with an accident or speeding on their record.
- Very competitive rates for senior drivers, whose rates generally increase with age.
- Decent prices for adding a teen driver to a parent policy.
- Relatively reasonable rates for drivers with a DUI.
- File SR-22sfor those who need it.
- Low level of complaints to state insurance departments regarding State Farm auto insurance.
- State Farm offers its Drive Safe & Save usage-based insurance program. It monitors actual driving behavior and offers a discount if your driving is good enough.
- Poor rates for good drivers and young drivers compared to top competitors.
- High average rates for drivers with bad credit.
- Does not offer gap insurance, which can be useful if you owe more on a car loan than the vehicle is worth.
- Lack of coverage options such as new car replacement, accident forgiveness and vanishing deductible.
Geico
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Advantages and disadvantages
- Great car insurance rates for good drivers.
- Affordable prices for seniors and young drivers, age groups generally expensive to insure.
- Advantageous average rates for drivers with a speeding ticket, bad credit or caught driving without insurance.
- A low level of complaints filed with state insurance departments regarding Geico auto insurance.
- Good drivers can try Geico’s usage-based insurance program (DriveEasy) to try and lower car insurance rates.
- Offers forgiveness insurance in the event of an accident.
- Geico auto insurance rates for adding a teen driver could be more competitive.
- High car insurance rates for drivers convicted of impaired driving.
- Does not offer coverage features such as new car replacement, vanishing deductible, or ride-sharing insurance.
- Geico’s average discount for auto and home insurance bundling is quite low at 8%.
State Farm vs. Geico: Which is Cheaper?
Geico auto insurance beats State Farm auto insurance for cheaper rates for more types of drivers. Geico is cheaper for good drivers as well as young and senior drivers. Geico also leads State Farm with cheaper fares for drivers with a speeding ticket, but it was close, with just $28 between the average prices.
State Farm is usually the cheapest choice for people with an accident or DUI on their records. Geico’s rates for a driver with a DUI are significantly higher, reaching more than $1,000 per year more than State Farm’s, on average.
State Farm vs. Geico Car Insurance: Coverage Comparison
Both State Farm and Geico can provide you with basic policy coverages, such as liability auto insurance, uninsured and underinsured motorist coverage, and medical payment coverage. They both offer collision coverage and comprehensive coverage, which is necessary if your car is financed or leased.
However, most car insurance companies today also offer additional coverages and features. When comparing State Farm and Geico, Geico tops State Farm for having the most additional types of coverage available to drivers. However, the two companies lack some common features that other auto insurance companies offer, such as gap insurance.
Both State Farm and Geico have non-owners insurance, SR-22 insurance, and a usage-based program that monitors your driving and can earn you a rebate. Geico also offers accident forgiveness, unlike State Farm.
State Farm vs. Geico Car Insurance: Which Has Fewer Complaints?
Complaints about Geico and State Farm auto insurance are low compared to the industry average. State Farm has a slightly lower level of complaints than Geico, but not enough to make that a factor in a buying decision.
Complaints about State Farm and Geico auto insurance primarily relate to claims handling. Geico’s biggest problem is claims delays, and most of State Farm’s complaints are about unsatisfactory settlement offers.
State Farm vs. Geico: Collision Repair
To get an idea of how State Farm and Geico handle claims, we looked at the ratings provided by the CRASH Network. Each year, the CRASH Network surveys collision repair professionals to get their perspective on insurance company claims processes.
In 2022, both State Farm and Geico received a C-letter rating in this report. This rating shows that collision repair specialists rate companies’ claims-handling practices as average at best.
State Farm vs. Geico: Auto Insurance Discounts
We analyzed the discounts from State Farm and Geico and found that Geico had several other possible discounts on car insurance. If you pay in full or set up automatic payments, you can get a discount with Geico but not with State Farm.
Geico doesn’t offer new driver training discounts like State Farm, which could be essential if you’re a young driver looking to lower their rates. The State Farms New Driver Training Discount requires drivers under 21 to complete an approved driver training course to receive the discount.
State Farm does not offer rebates for a new vehicle or for airbags, as Geico does.
Discounts are usually applied automatically when the company sees you are eligible. However, speaking with an insurance agent can ensure that you have received all the discounts available to you.
Summary: State Farm vs. Geico Car Insurance
Geico and State Farm are fairly equal as car insurance companies. They both offer low fares to certain segments of drivers. Both companies have low complaint levels, an average (C-) collision repair rating, and an average selection of optional coverage offers. Both have a decent list of discounts you might qualify for.
In the end, Geico wins in a head-to-head contest by the slightest margin. This is because Geico is cheaper for good drivers, those with minor traffic violations like speeding, and young and old drivers. State Farm, however, may be better and cheaper for people with an accident or DUI on their record.
Getting a car insurance quote from each is a must to see who will offer you the best rates for your specific situation.
Methodology
We used pricing from Quadrant Information Services, an insurance data and analytics provider. Average rates, unless otherwise noted, are based on a female driver insuring a Toyota RAV4 with $100,000 bodily injury liability per person, $300,000 per accident and $100,000 property damage liability, motorist coverage no insured and any other coverage required in the state. The rate also includes collision and all perils with a deductible of $500. The rates were analyzed in October 2021.
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