Nationwide vs. State Farm: Which Is Best? (2024)

State Farm’s blend of high customer satisfaction and low rates offers a balance of quality service and affordability, making it the better car insurance option.

Amy Beardsley
Written byAmy Beardsley
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Amy BeardsleyInsurance Writer
  • 3+ years writing about auto, home, and life insurance

  • 7+ years in personal finance and technology

Amy specializes in insurance and technology writing and has a talent for transforming complex topics into easy-to-understand stories.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
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Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated December 19, 2024

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Finding the right car insurance coverage is critical, whether you’re a new or experienced driver. Many drivers turn to State Farm or Nationwide for their car insurance coverage.

State Farm is the largest insurer by market share and serves customers in all 50 states. Nationwide is the 10th-largest insurer, but it doesn’t offer policies in Massachusetts, Louisiana, or Alaska.[1]

State Farm generally offers more competitive rates for coverage, with an average monthly cost of $54 for liability coverage compared to Nationwide’s $84.

Let’s compare the insurers’ rates, customer experience, discounts, and coverage options.

Quick Facts
  • State Farm has lower costs for teens, seniors, and drivers with speeding tickets.

  • Nationwide offers more coverage options, including accident forgiveness and vanishing deductible policies.

  • Both insurers provide various discounts to reduce premiums.

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Nationwide vs. State Farm: The verdict

Though Nationwide and State Farm offer a similar quality of coverage, State Farm has more affordable coverage. The company offers lower average rates across various driver categories, including coverage for teens, seniors, and people with less-than-perfect driving records. State Farm offers diverse discount options, like multi-car and student away-from-school discounts.

However, Nationwide car insurance gives you more policy management options than State Farm through its mobile app and a variety of coverage options, such as gap insurance and new car replacement insurance. Nationwide also has accident forgiveness and a vanishing deductible that State Farm auto insurance doesn’t offer.

Factor
Nationwide
State Farm
Insurify Quality (IQ) Score8.79.3
J.D. Power customer satisfaction score806 out of 1,000833 out of 1,000
Average quote: liability only$84$54
Number of available discounts1110
Number of states where it operates4750
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

Nationwide

Nationwide holds 1.99% of the U.S. market share for private passenger auto insurance premiums, according to the National Association of Auto Insurance Commissioners (NAIC). The company also received a high ranking of 861 out of 1,000 in the J.D. Power 2023 U.S. Insurance Shopping Study — indicating customer satisfaction.[2] However, the company doesn’t offer coverage in a few states.

Compare personalized, real-time quotes
User Reviews
3.3
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.7/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$84/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$181/mo

Nationwide operates in 46 states and Washington, D.C., selling car, homeowners, life, umbrella, and more types of insurance coverage. In addition to liability, collision, and comprehensive, Nationwide provides optional coverages such as towing and labor, rental car, and gap insurance. The company also offers a vanishing deductible that lowers your deductible for each year you drive safely. Nationwide has an A rating from AM Best for financial stability and fewer-than-expected customer complaints in the National Association of Insurance Commissioners Consumer Complaint Index.

Pros
  • Offers 24/7 roadside assistance coverage add-on

  • SmartRide (for safe drivers) and SmartMiles (for low-mileage drivers)

  • Accident forgiveness available

Cons
  • Below-average customer satisfaction scores from J.D. Power

  • Some discounts and programs not available in all states

  • Not available in every state

Read more driver reviews of Nationwide
Mark - December 14, 2024
Verified

Average

The price kept rising too high with every renewal.

Cheryl - December 9, 2024
Verified

Communication was minimal. The owner could not answer my questions and told me to wait until the secretary returned.

Communication was minimal. The owner could not answer my questions and told me to wait until the secretary returned.

Rchard - December 9, 2024
Verified

Changes are Good Every Few Years

Comparatively expensive.

State Farm

With 16.84% of the U.S. market share for private passenger auto premiums and a strong presence in all 50 states, State Farm sets itself apart with its many discounts and affordable coverage. It consistently ranks highly in claims and customer experience satisfaction from J.D. Power and has an AM Best financial strength rating of A++ (Superior).

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User Reviews
3.2
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$54/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$119/mo

State Farm is the largest U.S. auto insurer by market share and has operated for more than 100 years. Available in all 50 states, State Farm stands out for its customer service, extensive discounts, and optional coverages. The insurer ranked fifth for overall customer satisfaction in the 2023 J.D. Power U.S. Auto Claims Satisfaction Study. Safe drivers can enjoy many State Farm discounts, including ones for young motorists who complete an approved driver training course, for having a vehicle with certain safety equipment, and for going three years or longer without violations or at-fault accidents.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

  • Savings for bundling auto with home, renters, condo, or life insurance

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

  • Accident forgiveness limited to longtime customers with clean driving records

Read more driver reviews of State Farm
Al - December 19, 2024
Verified

My Opinion

Way too high premium.

Agnes - December 19, 2024
Verified

Best Insurance Company

I have been with them for a long time. Claims are handled quickly. I never had a problem, even when I had three teenagers driving.

Gabriel - December 18, 2024
Verified

My Experience with State Farm

Beware, some companies are more interested in making money than meeting the customers' needs. My wife had a medical issue while driving, and they covered it. A year later, there was a fender bender involving two moving vehicles. To me, it was no fault, but they considered it a second incident. We also had hail damage to our roof. They said there wasn't enough damage, yet my next-door neighbors received a new one. Now, they're canceling me for too much.

Nationwide SmartRide vs. State Farm Drive Safe & Save

Nationwide’s SmartRide and State Farm’s Drive Safe & Save programs incentivize safe driving through discounts, yet the companies’ telematics programs have a few key differences.

SmartRide offers a 15% discount for joining, which can increase up to 40% depending on your driving behavior. While poor driving behavior won’t directly raise your car insurance rates, it can lower your earned discount and lead to higher premiums. The program tracks mileage and time on the road, so high mileage and nighttime driving can increase rates.

State Farm’s Drive Safe & Save program also offers a discount at signup, and safe driving habits can earn you savings of up to 30%. It stands out by allowing your newer vehicle to transmit data to State Farm in addition to the smartphone app. However, your driving habits may change your discount when your plan renews, making the cost of your premium unpredictable.

Nationwide vs. State Farm: Which is the cheapest?

Regarding affordability, State Farm car insurance generally offers cheaper coverage. On average, Nationwide customers pay $84 per month for liability coverage and $181 for full coverage.

For comparison, the average cost of coverage from State Farm is $54 for liability and $119 for full coverage.

The cheapest option for you can vary depending on your location, driving history, and vehicle type, so you should consider these various factors when comparing auto insurance companies.

State Farm: Cheapest for drivers with a clean driving record

For people maintaining a clean driving record, State Farm offers more affordable monthly liability insurance quotes, consistently being the less expensive choice with its lower premiums.

Driver Type
Nationwide
State Farm
Clean driving record$84$54
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with a speeding ticket

State Farm is the better choice for drivers with a speeding ticket, offering lower average liability prices than Nationwide.

Driver Type
Nationwide
State Farm
Drivers with a speeding ticket$103$63
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for teen drivers

With a much lower average monthly cost for liability coverage than Nationwide, State Farm is the clear winner for young drivers.

Driver Type
Nationwide
State Farm
18-year-old$153$95
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with bad credit

Drivers with a poor credit score may earn cheaper average liability coverage from State Farm.

Driver Type
Nationwide
State Farm
Drivers with bad credit$101$82
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for senior drivers

State Farm offers lower rates for liability coverage for senior drivers.

Driver Type
Nationwide
State Farm
Senior drivers$56$39
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Compare coverages: Nationwide vs. State Farm

When comparing coverages, you’ll notice some common offerings from Nationwide and State Farm. Both have the core coverages most drivers look for, like bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorist coverage, collision, and comprehensive insurance.

But the real difference comes into play with the coverage add-ons. Consider gap insurance, for example, which is vital for people financing or leasing cars. It’s available with Nationwide but not from State Farm. This alone could be a key factor in making an informed decision.

Below, you can take a closer look at what add-on coverages each company offers.

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Compare discounts: Nationwide vs. State Farm

Exploring opportunities to save with Nationwide and State Farm reveals various discounts tailored to different drivers. Nationwide, while having higher rates overall, offers an autopay discount — a simple yet effective way to cut insurance costs you can’t get with State Farm.

State Farm generally has more discount options, including multi-car policies and special savings for students living away from home, which Nationwide doesn’t match. But if you don’t hit the road often, Nationwide’s low-mileage discount could offer the lowest rates and sway your decision.

Discount
Nationwide
State Farm
Clean driving recordYesYes
Defensive driving courseYesYes
Multi-policyYesYes
Multi-carNoYes
Low mileageYesNo
Telematics (safe driving app)YesYes
Anti-theft deviceYesYes
New carNoNo
Military/affiliationNoNo
Good studentYesYes
LoyaltyNoNo
Auto payYesNo
Student away at schoolNoYes
HomeownerNoNo
Alternative fuelNoNo

Nationwide vs. State Farm FAQs

Nationwide and State Farm are two of the best insurance companies, which can make it difficult to decide between the two companies. The following information should help you make your decision.

  • Which insurer is State Farm’s biggest competitor?

    Progressive has the second-largest market share, making it one of State Farm’s biggest competitors. Progressive doesn’t score quite as well in J.D. Power’s customer satisfaction index ranking, and it has slightly higher average car insurance rates. Still, Progressive offers accident forgiveness and a vanishing deductible you won’t find through State Farm.

  • Is Nationwide a strong insurance company?

    Yes. Nationwide is a strong insurance company. It offers a variety of insurance products and earns high marks for financial stability from AM Best, Moody’s, and S&P.

  • What are the main differences between Nationwide and State Farm insurance coverage?

    The main differences between State Farm and Nationwide insurance coverage are the add-on options and pricing strategies. Nationwide offers more specialized coverages like gap insurance, while State Farm often has cheaper rates and a broader range of discounts.

Sources

  1. National Association of Insurance Commissioners. "Property and Casualty Insurance Industry 2022 Top 25 Groups and Companies By Countrywide Premium."
  2. J.D. Power. "Auto Insurance Shopping and Switch Rates Reach New Highs as Premiums Surge, J.D. Power Finds."
Amy Beardsley
Amy BeardsleyInsurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

Amy has been a contributor at Insurify since September 2023.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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