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 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.
GEICO
Auto insurer founded in 1936, a Berkshire Hathaway subsidiary since 1996, built on direct sales.
Drivers who want to buy and manage a policy themselves
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.
Deciding factor: GEICO for direct, self-serve buying; State Farm for a local agent and a mutual structure. Prices depend on the driver.
Key fact: State Farm is a policyholder-owned mutual; GEICO has been a Berkshire Hathaway subsidiary since 1996.
GEICO suits drivers who want to buy and manage a policy directly by phone, online or in an app. State Farm suits drivers who want a local agent and a policyholder-owned mutual insurer. Prices depend on your profile, so compare quotes with identical coverage. This is general information, not financial or legal advice.
Choose GEICO if
Drivers who want to buy and manage a policy themselves
Choose State Farm if
Drivers who want a local agent and a mutual insurer
Share this verdict
Get notified when GEICO vs State Farm changes
One email when prices, specs or our verdict on GEICO vs State Farm change. No spam, unsubscribe anytime.
Key Differences at a Glance
- Ownership:Berkshire Hathaway subsidiary since 1996 vs Mutual company owned by policyholders
- Founded:1936 vs 1922 (first policy June 7)
- Sales model:Direct by phone, online and mobile vs Agent network
Compare next
Allstate vs GEICO
Key Facts & Figures
1 numeric metric compared
| Metric | GEICO | State Farm | Ratio |
|---|---|---|---|
| Founded | 1936 | 1922 (first policy June 7) |
Sourced from publicly available data ·
Key Differences
4 attributes compared head-to-head
- Berkshire Hathaway subsidiary since 1996OwnershipMutual company owned by policyholders
- 1936Founded1922 (first policy June 7)
- Direct by phone, online and mobileSales modelAgent network
- Chevy Chase, Maryland (since 1959)HeadquartersBloomington, Illinois
- Ownership
GEICO
Berkshire Hathaway subsidiary since 1996
State Farm
Mutual company owned by policyholders
- Founded
GEICO
1936
State Farm
1922 (first policy June 7)
- Sales model
GEICO
Direct by phone, online and mobile
State Farm
Agent network
- Headquarters
GEICO
Chevy Chase, Maryland (since 1959)
State Farm
Bloomington, Illinois
Full Comparison
| Attribute |  GEICO | State Farm |
|---|---|---|
| Ownership | Berkshire Hathaway subsidiary | Mutual company |
| How you buy | Direct: phone, online, mobile | Through State Farm agents |
| Availability | All 50 states and the District of Columbia | Check with an agent for your state |
| Policyholder dividend | Not a mutual | $5 billion mutual auto dividend announced February 2026 |
| Founded | 1936Tie | 1922 (first policy June 7)Tie |
GEICOPros & Cons
6 pros·4 cons across both
GEICO
Pros
Cons
State Farm
Pros
Cons
Frequently Asked Questions
6 questions
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.
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.
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.
State Farm sells mainly through its agents. GEICO was built on selling directly to customers and offers 24-hour phone service and online and mobile quotes and purchase; it also runs the GEICO Insurance Agency for homeowners, renters and other coverage.
GEICO offers insurance in all 50 states and the District of Columbia. State Farm is headquartered in Bloomington, Illinois. Check each company's quote tool or agent for coverage in your state.
State Farm issued its first policy on June 7, 1922. GEICO was established in 1936 as the Government Employees Insurance Company, first serving federal employees and certain military personnel.
Analysis: 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 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.
Key takeaways
- GEICO was founded in 1936 and has been a Berkshire Hathaway subsidiary since 1996. - State Farm issued its first policy on June 7, 1922 and is a mutual company owned by policyholders. - GEICO grew by selling directly; State Farm sells through agents. - State Farm announced a $5 billion mutual auto policyholder dividend in February 2026. - Neither is cheapest for everyone; compare quotes with the same coverage.
Read 9 more paragraphsShow less
Ownership and structure
GEICO, the Government Employees Insurance Company, was founded in 1936 by Leo and Lillian Goodwin. Berkshire Hathaway bid for its remaining shares in 1995, and by 1996 GEICO was a Berkshire subsidiary. State Farm Mutual Automobile Insurance Company, based in Bloomington, Illinois, was founded by G.J. Mecherle and is a mutual company that answers to customers rather than shareholders.
How you buy
GEICO's model has been direct marketing from the start, with 24-hour phone service since 1980 and mobile quote and purchase since 2010. State Farm sells through its agent network and describes a human plus digital approach.
Scale and reach
GEICO offers insurance in all 50 states and the District of Columbia and describes itself as having more than 40,000 associates in 17 major locations. State Farm's product lines include auto, life (since 1929) and fire and property (since 1935).
What to compare in quotes
1. Same liability limits, deductibles and optional coverages on both quotes. 2. Discounts you qualify for. 3. Whether you prefer a local agent or direct service. 4. Claims and service options in your state.
Allstate vs GEICO, Farmers Insurance vs State Farm and GEICO vs USAA cover other insurer pairs. This is general information, not financial or legal advice.
Resources & Learn More
Curated sources to dive deeper
Wikipedia
External Resources
GEICO: History, the full story (opens in new tab)
Founded 1936; Berkshire Hathaway subsidiary by 1996; Chevy Chase headquarters 1959; 24-hour phone service 1980; mobile buying 2010; all 50 states and DC; 40,000+ associates.
State Farm: Company overview (opens in new tab)
Mission, values and mutual company structure.
State Farm newsroom: The 104-year customer-first legacy (opens in new tab)
June 2026. First policy June 7, 1922; mutual company; Life 1929, Fire 1935; $5 billion mutual auto policyholder dividend announced February 2026.
Was this verdict helpful?
Explore More
Related comparisons and categories
Explore Entities
- GEICO
- State Farm
More Finance
Debate this on r/ThisOrThatDebate (run by the AversusB team)