September 27, 2022

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GEICO vs. State Farm 2022 Car Insurance Comparison

GEICO and State Farm are among the most familiar companies in the insurance business. Advertising campaigns have made them household names, but which carrier can provide the options car insurance you need at a price your can afford? Continue reading for our comparison of these popular insurers.

For more information about each company, check out our GEICO and State Farm reviews.

State Farm and GEICO Auto Insurance Coverage

GEICO and State Farm both offer standard car insurance coverage like:

  • Liability
  • Collision
  • Comprehensive
  • Uninsured and underinsured motorist
  • Personal injury protection (PIP)

You can learn more about basic coverage from our article on common types of auto insurance.

Additional Coverage

Additional coverage from GEICO and State Farm are available as add-ons to basic coverage.

  • Roadside assistance and towing
  • Rental car reimbursement
  • Medical payments
  • Car replacement coverage
  • Supplemental rideshare insurance

Average Insurance Rates from GEICO and State Farm

GEICO often offers lower rates compared with other insurers. According to The Zebra, the average monthly premium from GEICO is $94. Premiums with State Farm are slightly higher but remain competitive and comparable to GEICO. The average State Farm policy costs $108 per month.

This table compares average annual premiums from GEICO and State Farm by age tier.

Age Group GEICO State Farm
Teens $3,508 $5,820
20s $1,438 $2,379
30s $1,218 $2,020
40s $1,189 $1,587
50s $1,160 $1,558
60s $1,065 $1,485

Source: The Zebra

Remember that your driving record isn’t the only thing insurance companies consider before quoting a rate. Your age, geographic location, gender, marital status, and credit history are among the factors that influence the overall insurance cost.

Premium Discounts from State Farm and GEICO

GEICO and State Farm both offer multiple discounts to policyholders like:

  • Safe driving discount
  • Accident-free drivers
  • Anti-theft equipment discounts
  • Good student discounts
  • Policy bundling

Additional discounts are available. But some may not be offered by each. For example, GEICO provides a military discount. State Farm allows policyholders to earn discounts through its telematics program, which monitors driving habits to determine the premium.

Customer Satisfaction with GEICO and State Farm

High ratings for customer service and satisfaction are essential for any insurance business. Many people value a company’s reputation when choosing a new insurance provider. These potential customers equate high ratings with a strong likelihood of the insurer processing claims quickly and efficiently.

The 2021 J.D. Power U.S. Auto Insurance Study includes responses from about 39,000 car insurance customers. It provides insights into customer satisfaction in key areas:

  • Auto insurance cost
  • Policy offerings
  • Billing process and policy information
  • Customer interactions
  • Claims

The survey results indicate State Farm customers rated their opinions of and experiences with the company slightly higher than GEICO customers’ sentiment toward their insurer. J.D. Power’s most recent claims satisfaction study, State Farm was rated “above average,” while GEICO was rated “average.”

Which Has Better Financial Standing, State Farm or GEICO?

A.M. Best rated both companies with a superior financial strength score. These ratings indicate that the insurers can fulfill their claims obligations financially.

GEICO or State Farm: Which Is Better for You?

State Farm and GEICO are major insurance companies, and both provide auto policies with different levels of coverage for a broad range of drivers. Cost is a primary consideration for drivers shopping for insurance. There are many factors to consider when choosing between these two carriers. GEICO offers less expensive rates in many cases. State Farm often receives higher marks for its customer service and claims fulfillment.

Your car insurance requirements and situation are unique. You must conduct research when deciding on a new insurance provider. Speak with company representatives and choose the company and the coverage levels that best meet your needs.

It is crucial to request a quote from GEICO, State Farm, and other carriers and understand what is covered and what works best for you and your situation before signing a new insurance policy or renewing your coverage.

Related Car Insurance Stories:

https://www.kbb.com/car-advice/insurance/geico-vs-state-farm/