Geico vs. State Farm car insurance: Which is the better choice?
Two of the most well-known companies in the car insurance industry are State Farm and Geico. State Farm is the largest property and casualty insurance company in the U.S., offering auto policies since 1922. It is highly regarded for its customer service and user-friendly online application and claims process. Geico, founded in 1936, is known for its low rates and nationwide availability. While both companies provide many of the same benefits, there are some notable differences to consider when comparing car insurance options.
Shop for the best car insurance rates
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
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
State Farm vs. Geico: Coverage
Both State Farm and Geico provide liability, collision, and comprehensive insurance, which are necessary if you're financing or leasing your car.
State Farm and Geico offer various coverage options.
Geico does not offer travel expense reimbursement like State Farm, which pays up to $500 for food, lodging, and related costs if your car breaks down more than 50 miles from home.
Geico provides optional mechanical breakdown insurance that covers repairs, replacement parts, and other mechanical issues if your car breaks down.
State Farm vs. Geico: Price
Geico offers lower monthly premiums for full coverage, with an average of $164 per month, compared to State Farm's $219 and the national average of $193. This low cost made Geico one of our top picks for best insurers.
State Farm vs. Geico: Discounts
It is advisable to take advantage of discounts to reduce your premiums when purchasing an insurance policy, but not all discounts are available in all states and some may not be combined.
While both State Farm and Geico offer discounts for safe driving, State Farm's Drive Safe & Save can provide a higher discount of 30%, compared to Geico's DriveEasy which only offers a maximum savings of 25%.
Geico offers discounts for military personnel, teachers, federal employees, and members of certain organizations, with rates that could be up to 15% off. However, DriveEasy is only available in a limited number of states, and poor performance could result in higher rates.
State Farm vs. Geico: Customer service
J.D. Power's 2024 auto insurance study ranked State Farm among the top three insurers in six out of the 11 regions surveyed. Additionally, State Farm came in fourth place out of 17 in a separate survey on insurance shopping and fifth out of 24 for claims satisfaction.
J.D. Power's auto insurance study found that Geico performed below average in most regions and received poor ratings in surveys on insurance shopping and claims satisfaction.
While the National Association of Insurance Commissioners reports that State Farm received an average number of complaints for a company of its size, the Better Business Bureau gave it a C- due to unresolved complaints. On the other hand, Geico received the average number of complaints but received an A+ from the BBB, the highest grade.
Both State Farm and Geico received an A++ (Superior) rating for financial strength from A.M. Best, indicating their ability to meet policyholders' claims.
State Farm vs. Geico: Which is better?
Your priorities determine the right auto insurance: State Farm offers excellent customer service and additional coverage options, while Geico lacks rideshare insurance and payoff protection (a type of gap insurance).
Geico offers lower average rates, particularly for teenagers and those with poor credit, making it a more cost-effective option for saving money.
The most effective method for selecting an insurer is to obtain quotes for the same coverage and compare premiums and discounts to determine the best fit.
Why trust CNBC Select?
Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each car insurance review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of pet insurance products. At CNBC Select, we take pride in our journalistic standards and ethics, and we ensure that all our content is created without any input from our commercial team or external third parties. We earn a commission from affiliate partners on many offers and links, but this does not affect the quality or objectivity of our content.
Stay up to date with CNBC Select's comprehensive coverage of credit cards, banking, and money by following us on TikTok, Facebook, Instagram, and Twitter.
