GEICO vs. State Farm: Which Company Is Best for You?

GEICO and State Farm are among the best car insurance companies in America. Both insurers have similar financial strength ratings and offer a range of insurance products, including auto, home, and life insurance.

But when it comes to which company offers the most affordable coverage, GEICO is often the cheapest across a number of categories, including age, driving record, and credit score. GEICO’s average liability-only insurance costs just $42 per month, and a full-coverage policy costs $97.

Keep in mind that insurance policy terms and offerings vary by state (even with the same insurer). So, comparing auto insurance quotes from multiple companies to find the best rates and coverage for your needs is always worth the effort.

Key Takeaways:

• GEICO is the cheapest insurer in 35 states.
• State Farm offers better average rates for drivers with a DUI or at-fault accident on their driving records.
• State Farm offers slightly more discounts than GEICO.

GEICO vs. State Farm: Which Has Cheaper Car Insurance Rates?

Whenever you shop for car insurance, it’s important to remember that your rate will vary from insurer to insurer. Factors like the coverage options you choose, the year and make of your car, and your driving record can influence your final monthly premium.

The table below shows how average rates compare between these two insurance giants.

GEICO offers the cheapest rates for both liability-only and full-coverage policies. The average driver can save around 13% to 30% with GEICO over State Farm. But State Farm may be the better option in certain cases, such as if you got a recent DUI or had an at-fault accident.

Compare State Farm and GEICO Car Insurance Rates by State

Your auto insurance rates are highly dependent on a bunch of different factors, including the state you live in — even down to your specific ZIP code and city. The table shows GEICO and State Farm’s average insurance rates for each state, including Washington, D.C., as well as which insurer comes out on top in each state.

GEICO is the clear winner in 35 states, plus Washington D.C. While the two insurers offer competitive rates in some states, such as Wyoming, there are notable rate differences in Ohio and Michigan — GEICO policies are $205 and $117 less per month.

But State Farm beats GEICO in 16 states, including Rhode Island, West Virginia, and Iowa. It’s worth mentioning that State Farm’s rates in Rhode Island are $70 cheaper per month than GEICO’s.

Again, this is why shopping around for the best insurance company is essential. Now, let’s see which insurer comes out on top as the cheapest based on different age groups.

GEICO vs. State Farm: Compare Rates by Driver Age

Age is another factor insurers look at to determine your car insurance rates. Regardless of which insurance company you choose, rates are generally highest for drivers ages 18–25 due to a higher risk profile.

But rates typically lower after age 25 and begin to stabilize around 40. Once you reach age 65, rates can fluctuate up or down depending on factors like your driving habits and which insurer you buy a policy with.

The table below shows how average rates fluctuate based on a driver’s age group.

GEICO has the cheapest rates across all age categories, based on our analysis. There aren’t notable differences between the two insurers — overall, drivers can save between 17% and 20% when they choose GEICO over State Farm.

Teens and seniors see the biggest shift in their rates, but let’s look at how rates vary for the two groups in the sections below.

Which company has lower rates for young drivers?

Young drivers are more likely to be involved in a car accident than older drivers, so they generally pay more for insurance.

When comparing GEICO and State Farm rates, younger drivers save more when they go with GEICO. State Farm customers between 18 and 25 tend to pay $21 and $49 more per month for car insurance than GEICO customers.

Which company has lower rates for senior drivers?

GEICO’s average monthly rates for seniors are $14 cheaper than State Farm’s. Older drivers tend to pay less than other age groups. Seniors, especially retirees, usually drive less frequently and for shorter distances than younger adults, which means they get into fewer accidents.

State Farm vs. GEICO: Which Is Better for Drivers with Bad Records?

Your driving record is one of the most important factors insurers use to set rates. So, a speeding ticket, at-fault accident, driving under the influence (DUI) conviction, or any other traffic infraction will lead to a rate increase. Generally, drivers with clean driving records get the best rates, while those with traffic violations receive higher rates.

The table compares GEICO and State Farm rates for different driving records.

GEICO is the best for drivers with clean records and speeding tickets, while State Farm is the better option if you have an at-fault accident or DUI. Below, we’ll take a closer look at how rates vary for different driving violations.

Which company is cheaper for drivers with a speeding ticket?

GEICO’s liability-only rates are 12% cheaper than State Farm’s for drivers with a speeding ticket. Speed is a common factor in car accidents — and since speeding increases the risk of filing a claim, insurance companies tend to charge these drivers more. Just one speeding ticket increases your rate by an average of 37%, according to Compare.com data.

Which company is cheaper for drivers after an accident?

State Farm offers the cheapest rate for drivers with an at-fault accident on their record, at $8 less than GEICO per month. When you cause a car accident, you increase costs for your insurance company.

Auto insurance companies then raise rates to compensate for the increased expenses. Rates typically increase by 44% after an at-fault accident, according to our analysis.

Which company is cheaper for drivers with a DUI?

State Farm has cheaper insurance for drivers with a DUI on their record.

Driving under the influence is one of the most dangerous driving habits, which is why insurance companies raise rates for these drivers. Over 25% of drivers killed in car crashes have a BAC level at or above 0.08. After a DUI conviction, average rates increase by 94%, according to Compare.com data.

GEICO and State Farm: Compare Rates by Credit Score

Insurance companies also look at your credit history when setting your policy rate. Typically, drivers with higher scores get the best rates.

Companies look at what’s called a “credit-based insurance score” to predict your claim risk, according to the National Association of Insurance Commissioners (NAIC). But some states, such as California, Hawaii, Massachusetts, and Michigan, don’t allow the use of credit for this purpose.

The table shows how much drivers with excellent to poor credit scores pay with GEICO and State Farm on average.

GEICO sweeps all four categories. We’ll discuss how rates vary based on good, average, and bad credit in more detail below.

Which company is best for drivers with good credit?

GEICO has the lowest rates for drivers with excellent and good credit scores. It isn’t a huge difference, but drivers in these categories can save $5 to $17 per month with GEICO.

Which company is best for drivers with average credit?

Again, GEICO leads as the cheapest company for drivers with average credit. Drivers in this category can expect to save around $25 per month on coverage.

Which company is best for drivers with bad credit?

Hands down, GEICO has the best rates for drivers with poor credit, at an average of $120 lower than State Farm.

How State Farm and GEICO Compare for Discounts

Car insurance discounts help reduce insurance costs and should be considered when comparing companies during the quote process. Most auto insurers offer discounts if you meet certain criteria.

Discounts for having multiple policies and being a good student are two common incentives car insurance companies offer policyholders. Some discounts are recurring, like discounts for federal employees, while others may be one-time-only discounts.

Not all discounts may be listed on the insurer’s website, and discounts vary by insurer, so you should always inquire with the agent to see if more discounts or financial offers are available than what’s listed on the website.

The table below compares GEICO and State Farm discounts.

Both GEICO and State Farm offer about the same number of discounts, but State Farm has a slight edge.

State Farm is the better option for drivers who sign up for auto pay, paperless billing, and pay their policy in full up front. On the other hand, GEICO is the best option for drivers looking for a federal employee or military discount.

Which Company Has Better Perks?

GEICO and State Farm have noteworthy policy perks that can help you save on your premium.

State Farm has two programs: Steer Clear and Drive Safe & Save. Its Drive Safe & Save requires using a mobile app or plug-in device to monitor your driving habits. This perk could lead to lower rates (up to 30%) based on good driving habits and low mileage.

The company’s Steer Clear program is for drivers under age 25. Drivers have to use the company’s mobile app and complete all program requirements to save.

GEICO has a telematics program called DriveEasy, which monitors driving habits to reward drivers with savings. The company also has an accident forgiveness perk, which may prevent a rate increase for the policyholder’s first at-fault accident.

What Do GEICO and State Farm Customers Have to Say?

When comparing insurance companies, it’s a good idea to look at each company’s customer experience ratings. Some good places to start include Trustpilot, the Better Business Bureau (BBB), J.D. Power, and the NAIC.

Let’s see how GEICO and State Farm score on popular customer review sites.

GEICO and State Farm have similar ratings on Trustpilot and BBB, and both insurers are among the highest ranking for J.D. Power’s customer satisfaction score for usage-based insurance. Although both insurers have higher-than-average industry complaints, State Farm has fewer complaints on the NAIC complaint index.

But looking at these scores is just a starting point — recent customer reviews can paint an even clearer picture of areas where each company falls short (or exceeds the competition). For example, State Farm policyholders tend to have issues with rate increases or unexplained policy renewals. GEICO’s DriveEasy program tends to receive mixed reviews.

Below, we’ll look at some examples of recent customer reviews.

GEICO

State Farm

GEICO vs. State Farm FAQs

Before choosing your next insurance company, make sure you get the information you need to make an informed decision. Here are answers to common questions drivers have about GEICO vs. State Farm car insurance.

Which is more expensive, State Farm or GEICO?

Although average car insurance rates vary by company, State Farm tends to be more expensive than GEICO. State Farm has the cheapest rates in 16 states compared to GEICO, which is cheaper in 34 states and D.C. But State Farm is the cheapest for drivers with a DUI or at-fault accident on their records.

Who is GEICO’s biggest competitor?

State Farm and Progressive could be considered two of GEICO’s biggest competitors. These insurance companies have higher market shares than GEICO, and both offer similar insurance products in the same states. Allstate could also be considered another competitor, as it ranks just behind GEICO in market share.

Is GEICO bigger than State Farm?

No. When it comes to market share size, State Farm is the largest auto insurer in the industry. GEICO is owned by the Berkshire Hathaway Group, which ranks third in the nation in terms of market share.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. IIHS, “Teenagers,” Accessed December 10, 2023.
2. IIHS, “Speed,” Accessed December 10, 2023.
3. IIHS, “Older Drivers,” Accessed December 10, 2023.
4. IIHS, “Alcohol and drugs,” Accessed December 10, 2023.
5. NAIC, “Credit-Based Insurance Scores,” Accessed December 10, 2023.
6. Experian, “Which States Restrict the Use of Credit Scores in Determining Insurance Rates,” Accessed December 10, 2023.
7. BBB, “State Farm Insurance Company,” Accessed December 10, 2023.
8. BBB, “GEICO” Accessed December 10, 2023.
9. NAIC, “State Farm Fire & Cas Co National Complaint Index Report,” Accessed December 10, 2023.
10. NAIC, “Geico Cas Co National Complaint Index Report,” Accessed December 10, 2023.
11. NAIC, “2022 Market Share Report For Property/Casualty Group and Companies by State and Countrywide,” Accessed December 10, 2023.
12. J.D. Power, “Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds,” Accessed December 10, 2023.AM Best, “AM Best Revises Outlooks to Negative for State Farm Mutual Automobile Insurance Company and Certain Subsidiaries,” Accessed December 10, 2023.