USAA Car Insurance vs. Geico Car Insurance: Which Is Best? - MarketWatch
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USAA vs. Geico Auto Insurance
So, if you're comparing USAA vs. Geico, which is the better auto insurer? From our study of the two providers, our team found that both are reputable, offer low average rates and have good customer service reputations. We even gave USAA and Geico the same overall rating of 9.3 out of 10. The main difference is that USAA auto insurance is only available to active military, veterans and their immediate families.
Compare USAA vs. Geico
Based on our methodology we use to systematically rate every insurance provider, you can compare USAA and Geico in the table below:
| USAA | Geico | |
|---|---|---|
| Overall Rating | 9.3 | 9.3 |
| Industry Standing | 8.9 | 9.5 |
| Availability | 8 | 10 |
| Coverage | 9.7 | 9.1 |
| Cost and Discounts | 9.8 | 9.5 |
| Customer Experience | 9 | 9 |
According to the National Association of Insurance Commissioners (NAIC), USAA is the fifth-largest car insurance provider in the U.S. with about 6.3% of the market share. Alternatively, Geico's market share is almost twice this, at 12.3%, placing Geico as the third-largest car insurance company in the nation.
USAA and Geico both hold A++ (Superior) financial strength ratings from AM Best, the highest possible rating. Their financial strength indicates that they're likely to pay out claims. 
| USAA | Geico | |
|---|---|---|
| Year Established | 1922 | 1936 |
| Availability | 50 states | 50 states |
| AM Best Financial Strength Rating | A++ | A++ |
| Better Business Bureau (BBB) Rating | A+ | A+ |
| *J.D. Power 2024 U.S. Insurance Shopping Study℠ | 711 out of 1,000 | 656 out of 1,000 |
| Our Award | Best for Military Members | Best for Budget-Conscious Drivers |
USAA Overview
USAA began when 25 Army officers decided to insure each other's vehicles in 1922. Today, the company still serves military personnel and their families. You're eligible for USAA car insurance if:
- You are active-duty military personnel or a retired veteran
- You are a cadet or officer candidate
- Your spouse or parent has had a USAA auto or home insurance policy
Find out more about USAA's services in our USAA Car Insurance Review.
Geico Overview
Geico began as the Government Employees Insurance Company in 1936 and initially insured government employees. Today, it provides coverage to drivers nationwide and still has discounts for federal employees.
Find out more about Geico's services in our Geico Car Insurance Review.
USAA vs. Geico coverage
USAA and Geico both provide the six standard car insurance coverages to drivers nationwide. These insurers also offer several add-on coverage options, including roadside assistance, rental car coverage, rideshare coverage and usage-based insurance in some states.
The main difference between USAA and Geico car insurance policies is that Geico offers mechanical breakdown insurance (MBI), which is similar to an extended car warranty. If defective materials or workmanship cause damages, MBI coverage pays for the repair. USAA, on the other hand, has coverage for glass as well as leased vehicles.
USAA and Geico Coverage Comparison
Below is a table that provides information about the specific auto insurance coverage options (and other insurance products) offered by USAA and Geico:
Usage-Based Insurance Comparison
USAA and Geico both offer usage-based insurance programs that provide discounts based on your driving habits. However, neither program's eligibility extends to every state.
| USAA SafePilot® | Geico DriveEasy | |
|---|---|---|
| Device | Mobile app | Mobile app |
| Can It Raise Your Rate? | No | Yes |
| Availability | 47 states (plus Washington, D.C.) | 37 states (plus Washington, D.C.) |
| Discount | Up to 30% | Varies |
| What It Monitors | Speed, acceleration, braking, swerving, cornering, distance, location, phone use and more | Distracted driving, hard braking, cornering, smoothness, road type, distance driven, time of day and weather |
USAA's SafePilot won't raise your rate. The program can only give you a discount, which can extend up to 30%, or maintain your current rate. On the other hand, Geico can use data from DriveEasy to recalculate your rate and increase your insurance premium if you're deemed a risky driver.
SafePilot Availability
SafePilot is available in all states except California, Delaware and New Jersey. The program is available with some restrictions in Massachusetts.
DriveEasy Availability
You can get DriveEasy if you're based in Washington, D.C., or one of the following 37 states:
Is USAA Cheaper Than Geico?
When it comes to car insurance costs, both USAA and Geico are typically affordable options.  However, USAA tends to provide cheaper car insurance to people with good driving histories. For the average driver, the average annual rate for full-coverage car insurance is $1,741 with USAA and $1,995 with Geico. These are both below the national average of $2,681 per year.
| Driver Profile | Geico Annual Cost Estimate | USAA Annual Cost Estimate |
|---|---|---|
| 35-year-old with good credit and driving history | $1,995 | $1,741 |
| 25-year-old with good credit and driving history | $2,302 | $2,179 |
| 35-year-old with a recent car accident | $3,183 | $2,358 |
| 35-year-old with poor credit | $2,891 | $3,161 |
| 35-year-old with a recent DUI | $3,690 | $2,852 |
Keep in mind that your car insurance quotes may not reflect the above rates shown. Your actual rates may also be different from your quotes. Rates depend on a number of factors about you and your vehicle — such as your driving history, age, coverage options and the deductible you choose.
USAA vs. Geico Discounts
Geico offers more discounts, but that doesn't mean policyholders get the lowest car insurance rates. USAA is often the cheapest option even though it offers fewer car insurance discounts in total.
| USAA Discounts | Geico Discounts | |
|---|---|---|
| Multi-Policy | ✓ | ✓ |
| Multi-Vehicle | ✓ | ✓ |
| New Vehicle | ✓ | ✓ |
| Good Student | ✓ | ✓ |
| Good Driver | ✓ | ✓ |
| Driver's Education | ✓ | ✓ |
| Defensive Driving | ✓ | ✓ |
| Family | ✓ | |
| Length of Membership | ✓ | |
| Low Annual Mileage | ✓ | |
| Military Installation | ✓ | |
| Vehicle Storage | ✓ | |
| Air Bags | ✓ | |
| Daytime Running Lights | ✓ | |
| Anti-Lock Brakes | ✓ | |
| Anti-Theft System | ✓ | |
| Passive Restraint | ||
| Seat Belt Use | ✓ | |
| Membership and Employee | ✓ | |
| Federal Employee | ✓ | |
| Military  | ✓ | |
| Military/Emergency Deployment | ✓ |
USAA vs. Geico Military Discounts
If you're a military member or veteran, there are key differences to note between USAA and Geico auto insurance. 
USAA does not offer a military discount that applies to veterans, but it does offer other military-specific savings opportunities, such as a 15% discount for garaging your car on a military base. Geico provides a 15% discount to active members of the military and veterans as well as a 25% discount for deployment into an imminent danger pay zone.
Since USAA is built around supporting military life, it offers an extensive knowledge base and checklists for joining the military, deployment, changing stations and leaving the military. USAA also has a job-finding program and discounts on various partner services.
USAA vs. Geico Auto Insurance: Customer Reviews
Customer satisfaction is another category where USAA comes out on top. The J.D. Power 2024 U.S. Insurance Shopping StudySM rates auto insurance companies on their repair processes, estimate processes and rental experiences. Based on this criteria, USAA received 711 out of a possible 1,000 points, which is the second-highest score in the study, while Geico received 656 points, which is just below the industry average of 676.
Geico was right around average in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study℠ with a score of 871 out of 1,000. USAA tied for third overall with a score of 900.
According to NAIC data, USAA has a smaller number of complaints relative to its size than Geico. Still, both companies offer strong mobile app experiences with high ratings on Google Play. Though USAA and Geico BBB customer review ratings may seem concerning, these low scores are common among insurance providers and only represent a small number of customer experiences.
| USAA | Geico | |
|---|---|---|
| BBB Customer Review Rating | 1.2 out of 5 | 1.1 out of 5 |
| Mobile App iPhone App Store Rating | 4.8 out of 5 | 4.8 out of 5 |
| Mobile App Google Play Rating | 3.9 out of 5 | 4.6 out of 5 |
While USAA and Geico's customer review ratings on the BBB site look low, these scores are actually very normal for major national car insurance companies. Consumers are more likely to write reviews after negative experiences than positive ones, and these reviews make up a small percentage of USAA and Geico's overall number of customers anyway.
We reached out to both USAA and Geico for their low customer review ratings on the BBB, but we didn't receive a response from either company. 
Geico vs. USAA: The Bottom Line
After comparing every major car insurance company on the market, we recognized USAA as Best for Military Members and Geico as Best for Budget-Conscious Drivers. If you're eligible for coverage from both auto insurers, we recommend comparing quotes. 
Geico and USAA Competitors: Top Picks
Even though USAA and Geico are excellent car insurance providers, it's a good idea to get auto insurance quotes from multiple providers to compare your options. We also recommend reaching out to Travelers and State Farm.
Travelers: Best for Most Drivers
Travelers is a great option for most drivers. The company offers a wide range of coverage options and policy add-ons, making it easy for drivers to customize their insurance policies. Travelers also has a usage-based IntelliDrive® program, helping drivers stay safe on the road and get discounted rates.
Keep reading: Travelers Insurance Review
State Farm: Best Customer Experience
State Farm can be a smart choice for students and people who have younger drivers on their policy. The insurer offers a generous good student discount and other programs to help young drivers find lower rates. In addition, State Farm has more local insurance agents than any other provider, meaning you'll have an easier time getting assistance in person if you need it.
Keep reading: State Farm Insurance Review
Compare: USAA vs. State Farm or Geico vs. State Farm
USAA vs. Geico Car Insurance: FAQ
Below are some frequently asked questions related to comparing USAA and Geico car insurance:
USAA performs at or near the top of most insurance studies. The company has an A++ financial strength rating from AM Best and an A+ rating from the BBB, both the best ratings possible for their respective organizations.
Auto insurance rates at USAA are often among the cheapest for many types of drivers in different locations. However, to get USAA auto insurance, you need to be a member of the U.S. military, a veteran or an immediate family member.
USAA insurance is generally a good deal for those who qualify. The company tends to offer some of the lowest average rates for drivers in many different categories.
According to our cost data, Geico is one of the most affordable car insurance providers. The average annual cost of full-coverage auto insurance from Geico is $1,995, compared to the national average of $2,681.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company's customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800 hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
USAA Car Insurance vs. Geico Car Insurance: Which Is Best? - MarketWatch
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