Geico was founded in 1936 by husband and wife Leo and Lillian Goodwin as the Government Employees Insurance Company. Though the auto insurer started out catering to government employees, Geico now focuses on affordable rates for the everyday consumer. Geico offers a wide range of personal and business insurance policies, which are underwritten by various affiliated and non-affiliated insurance companies. Owned by Berkshire Hathaway Inc., Geico is the #2 property and casualty insurer in the nation and the seventh largest in market share for commercial auto insurance.
State Farm is a mutual insurance company, owned by the policyholders, and has been in business since 1922. State Farm began offering auto only, like Geico, and similarly has expanded into five different lines of insurance and almost 100 products. The #1 U.S. property and casualty insurer underwrites its own policies through a network of companies focusing on specific lines of insurance and states. Compared to Geico’s 6.4% market share, State Farm has 9.1% in the country, topping Geico in both home and auto, though Geico also has a top 10 spot for commercial auto insurance.
Geico vs State Farm: car insurance rates comparison
Though the cost of car insurance is important when comparing companies, it is not the only metric to consider. A company’s financial strength to pay claims and third-party rankings from trusted sources like J.D. Power can help provide a complete picture of what an insurance company has to offer.
Additionally, we assigned each company a Bankrate Score on a scale of 0.0 to 5.0 using information from AM Best, Standard and Poor’s, J.D. Power and rate information from Quadrant Information Services. The higher a company’s Bankrate Score, the more highly that company ranked in each scoring category.
|Car insurance company||Bankrate Score||AM Best||J.D. Power||Average annual premium for minimum coverage||Average annual premium for full coverage|
Rates by credit score
Insurance companies use proprietary credit-based insurance scores to determine rates in most states. These credit scores are not the same models used to determine loan and credit card eligibility, but instead help companies determine its risk of insuring individuals based on past history. As you can see when comparing Geico vs State Farm, Geico has cheaper average car insurance rates for people with good or worse credit while State Farm’s rates are cheaper for those with excellent credit scores.
*California, Hawaii, Massachusetts, Michigan and Washington do not allow credit insurance scoring. Maryland does not allow credit scoring on homeowners insurance and limits its usage to new business for auto insurance.
|Car insurance company||Poor||Average||Good||Excellent|
Rates by age
With age comes experience, which may be one reason why young drivers tend to pay more for car insurance than older drivers. Comparing State Farm vs Geico by age, Geico has cheaper average car insurance rates for younger drivers, but State Farm’s rates are close to Geico’s from age 25 forward. With two companies close in price, things like financial strength, available discounts, available coverages and third-party rankings can help you choose which company is best for you.
|Car insurance company||Age 16*||Age 18||Age 25||Age 30||Age 40||Age 60|
*16 year old cost when added to parents’ policy, 18-year-old renter
Rates by driving record
Your driving record and claims history is one 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 eligible for good driving discounts, which may lower your premiums even more. Comparing Geico vs State Farm, Geico has slightly lower average car insurance rates with a clean driving record, but State Farm beats Geico for drivers with a speeding ticket, at-fault accident and DUI conviction.
|Car insurance company||Clean driving record||Speeding ticket||Accident||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 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:
- 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.
- Accident free — Though both companies offer good driver discounts, State Farm also offers an accident free discount, which may potentially reward you if you go three or more years without a chargeable 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.
Geico vs State Farm: online and mobile experience
Geico and State Farm offer quotes online and the ability to access your account on their website to view policy details, quote changes, view ID cards, file claims and more. Both companies allow you to make payments, go paperless and get ID cards without logging in. With Geico, you can also add a vehicle and State Farm allows you to enroll in AutoPay without signing in. While you can purchase Geico car insurance online, State Farm sends your online quote to a local agent (if you do not specify an agent) for review and purchase.
Both carriers have mobile apps in the Apple store and Google Play with similar features. Both Geico and State Farm have similar rating scores in each store, with State Farm’s Google Play app just .1 below the others. Each has its own unique features that sets it apart from the other carrier.
- 4.8 / 5 — In addition to the features noted above, Geico’s mobile app also has a virtual assistant to help you access your policy features more easily. Geico also has an Explore feature, which uses augmented reality to discover places, like where gas stations are in certain cities. You can also get alerts for vehicle car reminders like staying on top of routine maintenance and finding out about recalls for your car.
- 4.8 / 5 — The Google Play version of the Geico app is the same as the Apple store version. While some reviews note there are no issues and the app is easy to navigate, others express frustration with the app running constantly and draining data or loading but not starting to allow access to included features.
- 4.8 / 5 — State Farm’s mobile app in the Apple store offers the above listed features, plus the ability to add your current ID cards to your Apple Wallet. You can get roadside assistance, get personalized reminders and send a text message to your agent. The app also allows you to login with a Face or Touch ID or using a PIN. The app also has shortcuts to Ask Siri for things like viewing your ID card or your claims status.
- 4.7 / 5 — Though the Google Play version of State Farm’s app is similar to the Apple store version, there are some differences. Instead of adding your ID card to your Apple Wallet, you can add it to G-Pay. While you cannot Ask Siri, you can still get personalized reminders and notifications and request roadside assistance.
Frequently asked questions
Is State Farm or Geico better?
Depending on your specific circumstances, either company could be a better fit. Based on average car insurance rates, Geico tends to have cheaper car insurance rates for drivers with poor credit, young drivers and those with a clean driving record. However, State Farm has cheaper car insurance rates for drivers with excellent credit and a less-than-perfect driving record.
Which insurance company is best at paying claims?
A company’s ability to pay claims is tied into its financial strength score. The more financial stability an insurance company has, the more equipped they are to pay out claims entirely, especially during natural disasters where many claims are filed under the same carrier. According to the AM Best financial scoring model, Geico and State Farm are both exceptionally rated.
What is the best car insurance company?
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. Their affordable 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.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 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.
Credit: 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. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA, MI & WA
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. 16-year-old rates were factored as the added cost to their parents’ policy; 18-year-old rates were calculated as drivers who rent their primary residence. The following state does not allow age to be a factor in determining auto insurance rates: HI
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction (BAC of >= .08) and lapse in coverage.