State Farm vs. Geico Car insurance: Which Is Better? – MASHAHER

State Farm and Geico are two of the biggest names in the car insurance space. State Farm®  is the largest property and casualty insurance company in the U.S., issuing auto policies since 1922. It’s praised for its customer service and easy-to-navigate online application and claims process. In business since 1936, Geico draws praise for its low rates and nationwide availability. 

The two companies offer many of the same benefits, but there are some key differences you should keep in mind when shopping for car insurance.

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 offers travel expense reimbursement, which Geico does not. It pays up to $500 for food, lodging and related costs if your car breaks down more than 50 miles from home.

Geico offers optional mechanical breakdown insurance which covers repairs if your car breaks down, needs replacement parts or has other mechanical issues.

Geico has the advantage on price: Monthly premiums for full coverage average $164 with Geico, according to Bankrate data, well below both State Farm’s $219 a month and national average of $193 per month. Its low rates  landed Geico on our list of best low-cost insurers.

Discounts can significantly lower your premiums and should definitely be considered when pricing a policy. Not all discounts are available in all states, however, and some may not be combined.

Both companies have usage-based insurance discounts that reward good driving habits. But State Farm‘s Drive Safe & Save can earn you 30% off, while Geico‘s DriveEasy can only save drivers up to 25%.

In addition, DriveEasy is available in fewer states and poor scoring can result in your rates increasing.

Geico does have a military discount that could be worth up to 15% off, as well as lower rate options for teachers, federal employees and members of certain organizations.

State Farm comes out on top for customer satisfaction: It was among the top three insurers in six out of the 11 regions surveyed in J.D. Power’s 2024 auto insurance study. It came in fourth place out of 17 in a separate survey on insurance shopping and fifth out of 24 for claims satisfaction.

Geico, meanwhile, rated below average in most regions in J.D. Power’s auto insurance study and scored poorly in the surveys on insurance shopping and claims satisfaction.

According to the National Association of Insurance Commissioners, State Farm received an average number of complaints for a provider of its size. However, it received a C- from the Better Business Bureau which cited unresolved complaints.

Geico also received the average number of complaints but received an A+ from the BBB, the organization’s highest grade.

Both State Farm and Geico earned an A++ (Superior) for financial strength from A.M. Best, the agency’s highest grade and a strong indicator of their ability to pay out on policyholders’ claims.

Choosing the right auto insurance depends on your priorities: State Farm has a much stronger record with customer service and additional coverage options Geico doesn’t, like rideshare insurance and payoff protection (a form of gap insurance). 

If you’re looking to save money, though, Geico’s shines brighter. Its average rates are lower in just about every category, especially for teens and drivers with bad credit.

The best way to decide between insurers is to get quotes for the same coverage and compare premiums and discounts to see which is the better fit.  

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of pet insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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