GEICO vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for insurance, State Farm offers less expensive premiums than GEICO
• GEICO has more affordable rates for drivers who have a speeding ticket on their driving record
• State Farm tends to be a much cheaper option for policyholders who live in rural neighborhoods

GEICO or State Farm: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. With so many ads from all sorts of companies offering big savings, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to GEICO or State Farm as potential options, but between the two, which one will offer you more affordable premiums?

Looking at nationwide averages, State Farm is around $27 a month cheaper than GEICO.

That being said, that doesn't necessarily mean State Farm will be the less expensive option for every driver. After all, auto insurance carriers can offer drastically different rates to every driver depending on rating factors like your age, your driving record, where you call home, or even your credit score (among other things), so rates could differ drastically from person to person.

So, if you want to find out which of GEICO or State Farm is really the best for you, keep reading to see average prices for each carrier broken down by a bunch of different rate factors.

GEICO vs. State Farm: Average Car Insurance Rates by State

GEICO and State Farm compete against each other in 50 states, with State Farm offering more affordable rates to the average driver in 34 of them. If you live in Alabama, Florida, Idaho, Maryland, Mississippi, or a few others, GEICO is the less expensive of the two companies when looking at the overall average prices, but State Farm is the cheaper option in most of the others.

That being said, there's a lot more that goes into your insurance cost than just your home state. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for car insurance than any other group of drivers. That's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean teen drivers can't still save money on their insurance. Just look at the table above -- where 18-year-old drivers who have State Farm for their auto insurance pay over 4% less than those who use GEICO.

But both carriers will reduce premiums by the time drivers turn 25. State Farm offers the steepest decrease, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. GEICO's average prices drop more than 55% during that same period.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the lowest car insurance rates you'll ever find. After all, they've likely been driving for quite some time, which usually lowers their chances of collisions and other infractions that can raise premiums.

But who has the best rates for retired drivers between GEICO and State Farm? State Farm gets the edge here, with average prices coming in at about $111 per month compared to GEICO's $148.

Which is the Best Company for Married Drivers?

Did you know that insurance premiums are generally cheaper for married couples than they are for those who are single? This usually boils down to married drivers having several vehicles on their policy -- something lots of auto insurance companies will reward with discounts.

For single drivers, the difference in average rates between these two carriers is significant, with State Farm prices coming in at around 10% less than GEICO's. The advantage is also clear for married policyholders - State Farm offers the cheapest average premiums.

GEICO or State Farm: Average Rates by Gender

Because women are less likely to get into collisions and get tickets, they run a lower risk of filing a claim with insurance. So, women tend to pay less for car insurance than men.

With GEICO, men usually pay about 4% more per month than women., and around 7% with State Farm.

Looking at the data for each company specifically, State Farm comes out as the lowest option for both genders, with average prices $25 less for men and $29 cheaper for women.

GEICO vs. State Farm: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

It's no secret that auto insurance can be pretty complicated. Everyone needs car insurance, but there are so many different terms and coverages that it can be hard to find the right policy for you.

Even so, most policies that drivers look at fall into two categories -- liability coverage (which provides property damage and bodily injury coverage for other drivers and their passengers if you cause a collision) and full coverage (which generally refers to having collision and comprehensive coverages in addition to liability).

Looking specifically at state minimum liability insurance, State Farm has the slight edge, with average monthly rates coming in at $99. If you want a full coverage policy with the same state minimum limits, State Farm again has the edge, with policies averaging about $216 a month to GEICO's $269.

Is GEICO or State Farm Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their insurance. But that's not to say you can't save money if you don't have the best driving record, either.

Speeding tickets and at-fault accidents will most likely raise your premiums, but is GEICO or State Farm less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use GEICO for their car insurance can typically expect their monthly bill to go up around 23% after getting a speeding ticket. State Farm policyholders can expect a less drastic increase of about 14%.

However, GEICO is normally the more affordable option for both drivers who have clean records and those with a recent ticket, offering prices that are 14% and 3% cheaper, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

Both companies will increase rates pretty significantly if you get into an at-fault collision with GEICO increasing by around 43%. State Farm has a less extreme increase, but you can still expect to pay nearly 20% more than you were prior to your first accident.

At the end of the day, State Farm offers the cheapest premiums for drivers with an at-fault collision on their records, with average prices coming in at $163 compared to GEICO's $200.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple speeding ticket or even an accident. On average, GEICO will climb your premiums about 58% after a DUI, while State Farm's average rates increase by more than 25%.

But if you end up with a DUI charge and are looking for more affordable premiums, State Farm tends to be less expensive for the average driver, with monthly premiums coming in at around $179 to GEICO's $275.

How does Credit Score Impact GEICO and State Farm Rates?

Did you know many insurance carriers take your credit score into account when determining rates? This isn't true for everyone (Massachusetts, for example, has banned the use of credit score as an insurance factor) but it does affect a lot of drivers out there.

The reasoning auto insurance companies use is that policyholders with bad credit will be less likely to pay their bills on time; so usually, they'll be asked to pay more, while those with good credit will be rewarded with more affordable prices.

Looking at GEICO and State Farm specifically, which company has the most affordable premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, State Farm will generally reward you the most. For policyholders with "excellent" credit scores, State Farm comes in just under 38.93 cheaper. Drivers with "good" credit scores normally save about 36% with State Farm compared to average prices from GEICO.

Which Company is Best for Drivers with Bad Credit?

If you have less-than-stellar credit, it can be somewhat of a toss-up as far as which company offers you the best rates. Drivers with "fair" credit pay around 25% less with State Farm than GEICO, but those whose credit is considered "poor" have it flipped -- saving about 16% per month with GEICO.

Is GEICO or State Farm Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a large impact on your monthly insurance bill? That's because the more milage you put on your car, the more likely you are to be in a collision and file an insurance claim.

State Farm tends to be the more affordable option for both remote workers and those taking short commutes. State Farm's average prices for drivers with 6,000 annual miles come in over 15% cheaper than GEICO. Those who drive 12,000 miles yearly can expect to pay nearly 15% less with State Farm over GEICO.

GEICO or State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a considerable impact as well. Typically, those who live in urban areas will pay more than drivers in rural areas since there are a lot more vehicles on the road where they live, which increases the chances of an accident.

State Farm tends to offer the most affordable rates for drivers in all areas, regardless of if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, State Farm's average prices are around $26 less than GEICO. People who live in suburban areas pay about $24 less with State Farm compared to GEICO. Those in rural areas can expect to save around $32 with State Farm compared to GEICO.

GEICO vs. State Farm Discounts

No matter why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by utilizing as many car insurance discounts as possible.

But with what seems like a million different discounts out there, it can be hard to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you can take advantage of.

Luckily, we did the hard work for you and compared all of the different discounts offered by GEICO and State Farm so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Overall, GEICO has the advantage when it comes to total number of discounts. State Farm offers a grand total of 23 discounts, while GEICO has 28.

There are a couple discounts both carriers offer, but GEICO also offers discounts for commercial drivers license, COVID-19 relief, deployed driver, and more.

On the other hand, State Farm has a few proprietary discounts of their own for things like annual mileage discounts, drive safe & save discounts, farm discounts, and more.

Final Thoughts: Is GEICO or State Farm Best for You?

So, we've broken down the average premiums for many of the factors insurance companies look at, and walked through the different discounts each carrier offers, too. That's all well and good, but when it comes down to it, which insurance company is the best carrier for you and your specific profile and needs?

State Farm might be best for you if....

• Your driving record includes a DUI charge.
• Your home is located in the suburbs.
• You drive fewer than 6,000 miles annually.

GEICO might be best for you if...

• You haven't received any speeding tickets or been in an accident in the last few years.
• You have a speeding ticket on your driving record.
• You're looking for the carrier with the most discounts.

Hopefully, this guide has ben a valuable resource as you compare GEICO and State Farm. We also hope we've given you the information you need to make the best decision when it comes to your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on car insurance -- comparing quotes from a handful of carriers, not just GEICO and State Farm. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top insurance companies in your area, all in just a few minutes.

GEICO vs. State Farm FAQs

Is GEICO or State Farm cheaper?

State Farm is the less expensive of the two carriers when looking at national average rates, with policies averaging $158 a month with State Farm and $185 for GEICO. Even so, that doesn't mean State Farm will be the lowest company for everyone, since there are lots of different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, GEICO or State Farm?

Sadly, the answer truly is "it depends.". No one carrier is "better" for everyone -- it all depends on what your unique auto insurance profile looks like. For example, GEICO is cheaper for drivers who have less-than-stellar credit scores, while State Farm offers less expensive premiums for drivers with an at-fault accident on their record.

Why do GEICO and State Farm offer me different rates?

Insurance companies use quite a few different factors when calculating the rates they charge. Variables like where you call home, age, gender, where you live, and sometimes even things like your credit score can all be used. Both GEICO and State Farm calculate prices differently, so it's likely they'll offer different rates. The best way to determine which company is the most affordable for you is by comparing personalized quotes from several different carriers.

How do I know if GEICO or State Farm is right for me?

The only way to find the car insurance carrier that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top auto insurance carriers for free. That way, you can guarantee you're getting the cheapest premium. And maybe you'll find that the best company for you isn't GEICO or State Farm at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.