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
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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 March 26, 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 $53 for liability coverage compared to Nationwide’s $85.

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.

FactorNationwideState Farm
Insurify Quality (IQ) Score4.34.5
J.D. Power customer satisfaction score806 out of 1,000833 out of 1,000
Average quote: liability only$85$53
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.
  • Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company.

    Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.

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.

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
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.
$85/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.
$187/mo

In business since 1925, Nationwide is one of the largest insurers, and sells car, homeowners, life insurance, umbrella insurance, and more. In addition to liability, collision and comprehensive, Nationwide provides optional coverages such as towing and labor, rental car, and gap. The company also offers accident forgiveness, and a vanishing deductible that lowers your deductible for each year you drive safely. Nationwide has an A+ rating from A.M. Best for financial stability, and an only slightly higher-than-expected number of customer complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index.

Pros
  • Numerous discount and savings opportunities

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

Cons
  • Not available in every state

  • Some discounts and programs not available in all states

John - March 25, 2024
Verified

No Explanation

They should explain why they raised the premium for car insurance by 78%.

William - March 22, 2024
Verified

They are very fair

'Nationwide is on your side' says it all.

Bobbie - March 16, 2024
Verified

Excellent

Nationwide is a great insurance company, but the cost is high.
Read our Nationwide review

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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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
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.
$53/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.
$116/mo

State Farm has been in business for more than 100 years, and today sells auto and other vehicle insurance, homeowners, life, health, pet, disability, and small business insurance. Available in all 50 states, State Farm car insurance policies offer multiple ways to save, from customizing coverage types, to a robust list of discounts. The company has far fewer complaints than expected for the industry, according to the National Association of Insurance Commissioner’s Consumer Complaints Index. State Farm also ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power Overall Customer Satisfaction Index.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

Craig - March 26, 2024
Verified

I called three times to talk with an agent, but he never called back. It was a very disappointing experience!

I called three times to talk with an agent, but he never called back. It was a very disappointing experience!

David - March 26, 2024
Verified

Considering Expanding Coverage

I was never informed that my rate would increase every month for some reason. No one told me about it. I received a notice in the mail stating that what I was supposed to pay that month was always 10 or 20 dollars more than it was the previous month. I would have liked to have been informed about this.

Beverly - March 26, 2024
Verified

Unsatisfactory Experience

A kid threw a rock through my window and I was blamed for the claim. What is the purpose of having insurance?
Read our State Farm review

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 $85 per month for liability coverage and $187 for full coverage.

For comparison, the average cost of coverage from State Farm is $53 for liability and $116 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 TypeNationwideState Farm
Clean driving record$85$53
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 TypeNationwideState Farm
Drivers with a speeding ticket$99$59
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 TypeNationwideState Farm
18-year-old$139$87
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 TypeNationwideState Farm
Drivers with bad credit$89$83
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 TypeNationwideState Farm
Senior drivers$58$38
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.

DiscountNationwideState 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

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.

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.

Featured in

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Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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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