Geico vs State Farm | Bankrate (2023)

Geico and State Farm are two of the top insurers in the U.S., but each company offers unique benefits and potential downsides to its customers. Geico, founded in 1936, is the second largest writer of auto insurance policies in the country, according to the Insurance Information Institute, with more than 28 million insured vehicles and 14.4 percent of the market share. The company is known for its gecko mascot, as well as for low prices and its long list of potential discounts.

State Farm is the largest insurer of passenger autos in the U.S., with 16 percent of the U.S. market share. Founded in 1922, the company offers far more than just car insurance policies. Both companies have a lot to offer, including superior AM Best financial strength ratings and above-average customer satisfaction scores from J.D. Power.

• Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

  Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from and Moody’s and factored a company’s corporate sustainability efforts.

  Tier scores are unweighted to show the company’s true score in each category out of a possible five points.

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Geico vs. State Farm comparison

Geico and State Farm are both leaders in the auto insurance industry, offering coverage nationwide. Both companies have a lot to offer, including superior AM Best financial strength ratings and above-average customer satisfaction scores from J.D. Power.

Geico pros and cons

State Farm pros and cons

Is Geico cheaper than State Farm?

While both insurers feature average rates that are below the national average for both minimum and full coverage, Geico’s average rates are slightly lower than State Farm’s average rates for both minimum and full coverage car insurance, according to Bankrate’s analysis of premium data from Quadrant Information Services. Geico’s average premium for minimum coverage is about $91 less per year than State Farm, and Geico’s average cost of full coverage car insurance is about $127 less per year compared to State Farm.

• Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

  To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

  These are sample rates and should only be used for comparative purposes.

Geico is generally cheaper for drivers with poor credit

One of the main factors that insurance carriers take into account when determining premium rates in most states is your credit score. However, California, Hawaii, Massachusetts and Michigan do not allow insurers to use credit scores to calculate premiums. In other states, your credit-based insurance score may play a role in the cost of your car insurance, and a high credit score may result in lower average premiums. On the other hand, those with lower credit scores will typically pay a higher rate for car insurance to help offset the risk for insurers. Based on Bankrate’s research, Geico’s average rates are cheaper for those with poor, average or good credit. For those with excellent credit, State Farm has the cheaper average rate.

• Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Geico is generally cheaper for young drivers

Young drivers have less experience behind the wheel, and in turn are statistically more likely to be involved in an accident. Because of this, insurers generally charge higher rates to younger drivers for car insurance. As drivers gain more experience behind the wheel and prove that they are responsible on the roads, their rates tend to drop. For drivers ages 20 and under, Geico’s average rates are cheaper than State Farm’s average rates. Keep in mind, however, that not all states allow insurers to consider age when calculating premiums, and other factors may also impact your car insurance rates. The average rates listed below are for young drivers covered on their parents’ policy.

• The rates displayed reflect the total cost of a 16- through 20-year-old driver added to their parents’ policy.

Geico is generally cheaper for adult drivers

Geico’s average rates for adult drivers tend to be cheaper than State Farm’s average rates. However, there is a significant decrease in the average cost of car insurance with State Farm and Geico once drivers enter their 20s. Adult drivers will generally see their rates decline as they age, although average rates may increase for drivers in their 70s and 80s, as they are statistically more likely to be involved in accidents. The average rates outlined below are based on a driver listed on their own policy.

• Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

State Farm is generally cheaper for high-risk drivers

Your driving record and claims history are two of the biggest factors that affect car insurance rates. Having a clean driving record not only helps you get cheaper car insurance, it also makes you potentially eligible for good driving discounts, which may lower your premiums even more. Geico’s average rates are slightly lower for drivers with clean driving records and those who have speeding ticket convictions, while State Farm’s average rates are lower for drivers who have been involved in an at-fault accident or have a DUI on their record. For both State Farm and Geico, the most significant increase in average premiums is for drivers with a DUI conviction, an offense that insurance companies take seriously.

• Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Geico vs State Farm: discounts

When rates are similar between insurance companies, discount offerings may be the deciding factor. Comparing Geico vs State Farm, Geico has more potential discounts than State Farm, but there are a few unique to State Farm that Geico does not offer. Both companies offer multi-car, multi-policy, affiliation and good student discounts. Here are a few unique to each carrier:

Geico

• New vehicle: Drivers who insure a new car three model years or newer with Geico may save up to 15% on car insurance premiums.
• Emergency deployment: If a military insured has to deploy in an emergency to an imminent danger zone, they may be able to save up to 25% on car insurance by providing approved orders to Geico.
• Federal employee: Drivers who are current or retired federal employees may be able to save up to 12% on car insurance with Geico.

State Farm

• Accident-free: Though both companies offer generous potential discounts, State Farm also offers an accident-free discount, which may reward you if you go three or more years without a claim for an accident.
• Student away at school: Drivers under the age of 25 who go away to college at least 100 miles away from their home and do not take a car with them may be eligible for this discount with State Farm.
• Steer Clear: Also for drivers under 25, those without any at-fault accidents or moving violations in the last three years may qualify for up to 20% in savings by completing this educational driving program.

Usage-based insurance comparison: Geico vs. State Farm

Usage-based insurance programs, also known as telematics programs, have become a popular way for insurers to monitor your driving skills and potentially reward you with a discount if you prove to be a safe driver. These programs typically require you to install an app on your smartphone, or in some cases, place a small device in your car that monitors your driving habits, like your driving speed, braking, and more. Some insurers offer significant discounts to drivers who prove they have safe habits behind the wheel, so in some cases, it can be worthwhile to consider opting in to these programs.

Geico vs State Farm: customer experience comparison

The 2022 J.D. Power Auto Claims Satisfaction Study rankings for both Geico and State Farm indicate that the insurers place a priority on customer service. State Farm earned a score of 882/1,000 on the 2022 study and Geico earned 874/1,000, both of which are above average. On the other hand, the National Association of Insurance Commissioners Complaint Index Rating for Geico is 2.01 and the rating for State Farm is 1.61. Ratings above the 1.0 industry average indicate that there might be room for improvement.

Frequently asked questions

• • Depending on your specific circumstances, either company could be a better fit. Based on average car insurance rates, Geico tends to have cheaper average car insurance rates for drivers with poor credit, young drivers and those with a clean driving record. However, State Farm has cheaper average car insurance rates for drivers with excellent credit and a less-than-perfect driving record.

  • A strong financial strength rating from organizations like AM Best or Standard and Poor’s shows a company’s past ability to pay claims. Though there is no guarantee of a company’s future ability to pay claims, Geico and State Farm both have superior financial strength. These ratings can offer customers peace of mind in the event they have to file a claim.

  • The best car insurance company offers the level of coverage you need, the ability to customize your coverage when the need arises and has affordable rates. For different reasons, Geico and State Farm are considered some of the best car insurance companies in the country in multiple Bankrate studies. Their affordable average rates, discount and coverage availability and the fact they are offered in all states put them both on our list of Best Car Insurance Companies.

  • Yes, both Geico and State Farm offer homeowners insurance. However, Geico does not underwrite its homeowners or life insurance policies. It works with partner insurers that are responsible for the underwriting of the policies instead. If you have a homeowners insurance policy with Geico, you may work with another company to manage your policy and file claims.