{"slug":"geico-vs-state-farm","question":"GEICO vs State Farm: How the Two Insurers Differ","answer":"GEICO and State Farm are both large U.S. auto insurers, but they are built differently. GEICO, founded in 1936, has been a Berkshire Hathaway subsidiary since 1996 and grew by selling directly to customers by phone and online. State Farm, which issued its first policy in 1922, is a mutual company owned by its policyholders rather than shareholders and sells through a network of agents. Your price depends on your driver profile and state, so get quotes from both.","answer_curated":true,"verdict":"GEICO suits drivers who want to buy and manage a policy directly by phone, online or in an app.\n\nState Farm suits drivers who want a local agent and a policyholder-owned mutual insurer.\n\nPrices depend on your profile, so compare quotes with identical coverage. This is general information, not financial or legal advice.","keyDifferences":[{"label":"Ownership","entityAValue":"Berkshire Hathaway subsidiary since 1996","entityBValue":"Mutual company owned by policyholders","winner":"tie"},{"label":"Founded","entityAValue":"1936","entityBValue":"1922 (first policy June 7)","winner":"tie"},{"label":"Sales model","entityAValue":"Direct by phone, online and mobile","entityBValue":"Agent network","winner":"tie"},{"label":"Headquarters","entityAValue":"Chevy Chase, Maryland (since 1959)","entityBValue":"Bloomington, Illinois","winner":"tie"}],"winner":null,"confidence":"high","entities":[{"name":"GEICO","slug":"geico","url":"https://www.aversusb.net/entity/geico","alternativesUrl":"https://www.aversusb.net/api/v1/alternatives/geico"},{"name":"State Farm","slug":"state-farm","url":"https://www.aversusb.net/entity/state-farm","alternativesUrl":"https://www.aversusb.net/api/v1/alternatives/state-farm"}],"faqs":[{"question":"Is GEICO or State Farm cheaper?","answer":"It depends on you. Auto insurance prices depend on your driving record, vehicle, location, coverage and discounts, so one company can be cheaper for one driver and pricier for another. Get quotes from both with the same coverage limits and deductibles."},{"question":"Who owns GEICO and who owns State Farm?","answer":"GEICO is a subsidiary of Berkshire Hathaway, which bought its remaining shares in 1995 and completed the deal by 1996. State Farm Mutual Automobile Insurance Company is a mutual company, which means it answers to its policyholders rather than shareholders."},{"question":"Does State Farm pay dividends to policyholders?","answer":"State Farm announced a $5 billion mutual auto policyholder dividend in February 2026. Whether and how much a policyholder receives depends on State Farm's terms and state rules."}],"attribution":{"source":"A Versus B","url":"https://www.aversusb.net/compare/geico-vs-state-farm","license":"CC BY 4.0","citationFormat":"According to A Versus B (https://www.aversusb.net/compare/geico-vs-state-farm), GEICO and State Farm are both large U.S. auto insurers, but they are built differently. GEICO, founded in 1936, has been a Berkshire Hathaway subsidiary since 1996 and grew by selling directly to cust","dateModified":"2026-10-16T00:00:00.000Z"},"relatedQuestionsUrl":"https://www.aversusb.net/api/faq/geico-vs-state-farm","relatedComparisonsUrl":"https://www.aversusb.net/api/v1/related/geico-vs-state-farm","knowledgeGraphUrl":"https://www.aversusb.net/api/knowledge-graph/geico-vs-state-farm"}