State Farm vs Nationwide

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State Farm is the largest auto insurance company in the country, with a market share of just over 16%. State Farm has written more than 83 million insurance policies in all 50 states, and employs more than 19,000 independent agents.

Nationwide is based in Columbus, Ohio, and was founded in 1925. The company is in the top 10 largest car insurance companies, with 2.32% of the total market share. Nationwide has written insurance policies in all 50 states as well, and has more than 11,000 independent agents.

State Farm vs Nationwide: car insurance rates comparison

When comparing car insurance companies, potential policyholders may find it beneficial to evaluate options based on third-party ratings and average premiums, which are contributing factors in determining Bankrate Scores. While both companies have strong ratings from AM Best and J.D. Power, in addition to nearly identical average annual premiums, State Farm’s Bankrate Score edges out Nationwide by a small margin.

Car insurance company Bankrate Score AM Best J.D. Power Average annual premium for minimum coverage Average annual premium for full coverage
State Farm 4.5 A++ 881/1,000 $539 $1,457
Nationwide 4.3 A+ 876/1,000 $501 $1,485

Rates by credit score

Credit score is one of the factors that will impact your car insurance rate in most states. The only states that do not allow insurance companies to look at credit scores are Hawaii, California, Michigan, Washington and Massachusetts. The following table highlights the difference between average annual rates for a full coverage policy from Nationwide vs. State Farm, based on how your credit score factors in determining premiums.

Car insurance company Poor Average Good Excellent
State Farm $3,309 $1,656 $1,457 $1,126
Nationwide $1,924 $1,577 $1,485 $1,269

Rates by age

Generally speaking, young drivers pay much higher insurance premiums than older drivers. This is due to the fact that new drivers are more likely to get into accidents. Here are the average annual premiums for State Farm vs. Nationwide auto insurance based on age. While these reflect the average annual premiums for State Farm and Nationwide, not all states take age into account, such as Hawaii, and your own unique circumstances will mean your rates will vary from these averages even in other states.

Car insurance company Age 16* Age 18 Age 25 Age 30 Age 40 Age 60
State Farm $2,077 $4,137 $1,694 $1,494 $1,457 $1,327
Nationwide $1,241 $4,449 $1,668 $1,479 $1,485 $1,243

*16 year old cost when added to parents’ policy, 18-year-old renter

Rates by driving record

Another major factor that impacts car insurance rates is driving record. Drivers who have a history of speeding tickets, accidents or DUI convictions on their record will pay a higher rate than drivers with a clean record. Nationwide vs. State Farm auto insurance rates based on driving record are fairly aligned, with a greater difference seen for drivers with a DUI conviction on record.

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
State Farm $1,457 $1,590 $1,657 $2,201
Nationwide $1,485 $1,734 $1,745 $2,665

State Farm vs Nationwide: discounts

State Farm and Nationwide both offer a variety of car insurance discounts that can help drivers save money on their policy. However, keep in mind that the discounts available are unique to each provider. Here are the auto insurance discounts you can get through State Farm compared to Nationwide:

State Farm

  • Distant student discount — State Farm offers a discount to students under 25 who attend school away from home, and only use their vehicle during holiday breaks and short vacations.
  • Drive Safe and Save discount — With the Drive Safe and Save discount program, drivers over 25 can save money on their policy for demonstrating safe on-road behaviors.
  • Steer Clear discount — State Farm’s Steer Clear program rewards young drivers under 25 with a lower rate for being a safe driver.

Nationwide

  • Paperless discount — Nationwide offers a discount to drivers who sign up to receive paperless billing and policy statements.
  • Low mileage discount — Drivers who do not use their car frequently can enroll in the SmartMiles program, which has a monthly rate based on the number of miles driven.
  • SmartRide® discount — Nationwide’s SmartRide program gives drivers feedback on their driving habits through a telematics device, and rewards safe drivers with a lower rate.

State Farm vs Nationwide: online and mobile experience comparison

In terms of online experience, State Farm and Nationwide are two of the best car insurance companies on the market. Both providers have an excellent website that is easy to navigate, and there are online tools and resources designed to help you decide what type of coverage is right for you. Additionally, State Farm and Nationwide both have instant online quotes for car insurance and online claims. Here is a closer look at the mobile apps from State Farm vs. Nationwide:

State Farm

  • App Store (4.8 stars) — State Farm’s iOS app allows you to file claims, get roadside assistance, pay your premium, download ID cards and contact a customer service agent. The app also supports Apple Pay if you need to make a payment.
  • Google Play (4.8 stars) — With State Farm’s Android app, you can get access to all the same features as the iPhone app. Most reviews are positive, but some users have cited issues with the login screen and payment system.

Nationwide

  • App Store (4.4 stars) — Nationwide’s iOS app includes many of the same features as State Farm’s iOS app. Policyholders can download their ID cards, file a new claim, request roadside assistance, find vehicle repair shops in their area and call customer service.
  • Google Play (4.2 stars) — The Android app from Nationwide is equipped with the same features as the iOS app. However, based on the Google Play Store reviews, the Android app has some issues with bugs and is generally slow to load.

Frequently asked questions

What is the best car insurance company?

The best car insurance company varies by individual, but both State Farm and Nationwide are included among the top companies reviewed by Bankrate. It depends on where you live, what type of coverage you need, what discounts you can qualify for and your budget. You should shop around and compare providers using your own criteria to find the best company for you.

How much car insurance should I have?

In every state where car insurance is required, drivers must carry a minimum amount of coverage. However, you can choose to raise your coverage limits for more financial protection, or upgrade to a full coverage policy if you want protection for your vehicle. Beyond the minimum requirement, the amount of car insurance you carry is up to you (or your lender, if your vehicle is financed).

How much does car insurance cost?

The average cost of car insurance in the United States is $1,674 per year for a full coverage policy. However, the exact rate you will pay will vary based on personal factors, which commonly include your state and ZIP code, credit score, claim history and driving record.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: California, Hawaii, Massachusetts, Michigan, Washington.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. 16-year-old rates were factored as the added cost to their parents’ policy; 18-year-old rates were calculated as drivers who rent their primary residence.

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction (BAC of >= .08) and lapse in coverage.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Written by
Elizabeth Rivelli
Insurance Contributor
Elizabeth has two years of experience writing for insurance domains such as Bankrate.com, The Simple Dollar, Coverage.com and NextAdvisor, among others. In addition to auto insurance, Elizabeth regularly writes about home insurance, renters insurance and life insurance. She also covers industry trends and general insurance education.
Edited by
Insurance Editor