State Farm and Geico are two of the largest car insurance companies in the U.S. and have a lot of experience taking care of customers. They each have a lot to offer, but how does State Farm compare to Geico? Forbes Advisor compared State Farm vs. Geico: Here’s how they stack up against each other.
State Farm vs. Geico Car Insurance: Which Is Better?
Geico and State Farm both have strengths and weaknesses that can affect which one is better for you.
Geico’s main strengths are overall affordable rates. Geico’s weakness lies in its leaner lineup of coverage offerings.
State Farm has a lower level of complaints than Geico, but average prices are higher than Geico for most driver types, making that a weakness in this comparison. One exception is that State Farm offers better average rates for drivers with a DUI on their record than Geico. Similar to Geico, State Farm is somewhat lacking when it comes to coverage options.
Both State Farm and Geico did well in our evaluation of the best car insurance companies. Geico earned a score of 4.5 stars compared to State Farm’s 4.0 stars. Geico received higher marks because of its lower car insurance rates for most driver types.
State Farm
- Excellent renewal discount of 14% on average if you stay with the company for a minimum of three consecutive years.
- Good average price for adding a teen driver to a parent’s policy.
- Company will file SR-22sforms for those who must have them.
- Provides a usage-based insurance program (Drive Safe & Save), which monitors drivers to try to get a discount based on driving habits.
- A low level of complaints filed with state insurance departments about car insurance.
- Competitive car insurance rates for drivers with speeding tickets on their records.
- Mediocre auto insurance costs for good drivers and those with an accident or DUI on their record.
- Highest average rates for drivers with poor credit among the companies we compared.
- Doesn’t offer gap insurance.
- Doesn’t provide coverage options like vanishing deductible, accident forgiveness and new car replacement.
Geico
- Superior car insurance rates for good drivers and also those who have a speeding ticket, poor credit or were caught driving without insurance.
- Provides superb rates for seniors and young drivers, two driver types who can be very expensive to insure.
- Offers accident forgiveness insurance.
- Geico’s usage-based insurance program (DriveEasy) is for good drivers looking to reduce their car insurance costs based on driving habits.
- Geico’s car insurance prices for drivers with a DUI are only so-so.
- Doesn’t offer features like new car replacement, a vanishing deductible or rideshare insurance.
- Geico’s average discount for bundling auto and home insurance is rather low at 8%.
Comparing State Farm vs. Geico
State Farm vs. Geico: Which Is Cheaper?
Geico car insurance beats State Farm car insurance for cheaper rates for more driver types.
Geico beats State Farm in all categories but one. Geico has lower average car insurance rates after a speeding ticket than State Farm does. Geico also has cheaper average rates than State Farm for good drivers, drivers who cause an accident with injury, young drivers and senior drivers.
State Farm has cheaper car insurance rates after a DUI, on average, compared to Geico
State Farm and Geico car insurance rates comparison
State Farm vs. Geico: Car Insurance Discounts
Both State Farm and Geico have car insurance discounts, but Geico offers more of them. If you pay in full or set up automatic payments, you can get a discount with Geico but not State Farm.
Geico doesn’t have a new-driver training discount like State Farm, which could be essential if you’re a young driver looking to lower your rates. State Farm’s new-driver training discount requires drivers under age 21 to complete an approved driver education course to receive the discount.
State Farm doesn’t offer discounts for new vehicles or airbags as Geico does.
Discounts are typically applied automatically when the company sees you’re eligible. However, talking to an insurance agent can ensure you’ve received all the discounts available to you.
State Farm and Geico car insurance discounts comparison
State Farm vs. Geico Car Insurance: Coverage Comparison
Geico edges out State Farm for having the most extra coverage types available to drivers, but both companies lack some common features other car insurance companies offer, such as gap insurance. Most car insurance companies today also offer additional coverages and features.
State Farm and Geico both provide basic policy coverages, such as liability car insurance, uninsured and underinsured motorist coverage and medical payments coverage. They both offer collision and comprehensive coverage, which is required if your car is financed or leased.
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 discount. Geico also offers accident forgiveness, while State Farm does not.
Geico and State Farm coverage options
State Farm vs. Geico: Bundling Options
Both State Farm and Geico provide home and auto insurance bundling discounts, but State Farm has a bigger discount. Bundling discounts is when you have more than one type of policy with the same insurance company.
State Farm’s bundling discount when you combine auto and home is 23%, while Geico’s average discount for bundling auto and home insurance is 8%.
Here’s a look at which types of insurance you can bundle with auto insurance for each company.
Geico and State Farm bundling options
State Farm vs. Geico Car Insurance: Which has Fewer Complaints?
Complaints about State Farm auto insurance are lower than Geico and better than the industry average. Geico is slightly higher than average.
How an insurance company responds to a car insurance claim is vital to customer satisfaction. That’s true whether you call your insurer or file a car insurance claim online.
Consumers’ most common complaints about State Farm and Geico were related to liability coverage. The top reasons people submitted complaints against State Farm and Geico to state departments of insurance were identical:
- Claims handling delays
- Unsatisfactory claims settlements/offers
- Claims denials
State Farm vs. Geico: Collision Repair
To get an idea of how State Farm and Geico handle claims, we looked at grades provided by the CRASH Network. Each year the CRASH Network surveys collision repair professionals for their insights into insurance companies’ claims processes.
In 2022, State Farm and Geico both received a C- letter grade in this report. This grade shows that collision repair specialists feel the companies’ claims handling practices are average at best.
State Farm and Geico collision repair grades
Summary: State Farm vs. Geico Car Insurance
Geico and State Farm are fairly evenly matched, but one difference is that Geico has better and cheaper car insurance rates for more driver types, including good drivers, drivers with a speeding ticket, young drivers and older drivers. State Farm is better for drivers with a DUI and has a lower consumer complaint level.
Both companies have an average (C-) grade for collision repair and a so-so selection of optional coverage offerings. Both have a decent list of discounts that you may be eligible to receive.
Getting a car insurance quote from each is a must to see who will offer you the best rates for your specific situation.
Methodology
Ratings are based on Forbes Advisor’s analysis of the best car insurance companies. To identify the best car insurance companies we evaluated each company based on its average rates for a variety of drivers, the coverage options offered, complaints against the company and collision repair grades from auto body professionals.
Auto insurance rates (50% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Car insurance coverage options (25% of score): Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings. But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category, we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.
Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against the companies that operate in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials.
Collision repair (5% of score): If you’re lucky, you’ll have very little experience with collision repairs. That also means you won’t necessarily know if you’re getting superior claims service compared to other insurers.
Collision repair professionals have the advantage of dealing with insurers daily and seeing which companies try to cut corners on claims, and which companies have processes that slow down the repair process.
For this reason we incorporated grades of insurance companies from collision repair professionals, supplied by CRASH Network.
State Farm vs. Geico Car Insurance FAQs
Is Geico bigger than State Farm?
No, Geico has a smaller market share than State Farm. State Farm is the biggest U.S. car insurance company, with a 16% market share. Geico is No. 2 with a 14% market share.
Who is the No. 1 auto insurer in the U.S.?
State Farm ranks No. 1 for size.
State Farm was ranked among the best car insurance companies by Forbes Advisor, with 4 stars out of 5. American Family, Auto-Owners, Nationwide and USAA received 5 stars.
Is State Farm a good car insurance company?
State Farm received 4.0 out of 5 stars from Forbes Advisor thanks partly to competitive rates and low customer complaints. Car insurance companies differ depending on multiple factors, including driver profile and discounts, so it’s wise to get car insurance quotes from multiple companies when shopping for a car insurance policy.
How do I get Geico’s good driver discount?
You can earn good driver savings from Geico by staying accident-free for five years. If you haven’t had any accidents in five years, you can potentially save up to 26% on Geico car insurance.
Good drivers pay an average of $1,716 annually for a Geico car insurance policy. Geico has the best average rates for good drivers of the companies we compared, except for USAA, which is only available to veterans, military members and their families.
Are people happy with Geico?
Geico has a slightly higher than average level of complaints filed with state insurance departments about car insurance.
