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State Farm vs. Nationwide

Updated May 07, 2024

While State Farm holds the largest market share for auto insurance, Nationwide offers lower rates for most drivers.


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With over 18 percent of the total market share according to the National Association of Insurance Commissioners (NAIC), State Farm is the largest private passenger auto insurance company in the U.S. Founded in 1922 to provide affordable insurance for farmers, State Farm now offers a wide variety of auto and property insurance products, as well as small business, health and personal liability insurance, to drivers in all states except Massachusetts and Rhode Island.

Nationwide ranks 10th in direct premiums written in the private auto insurance market. Like State Farm, Nationwide sells a variety of insurance products, such as home, life, and specialty health insurance, and offers additional financial services, including retirement plans. Despite its name, Nationwide only writes auto insurance in 46 states and Washington, D.C. — drivers in Alaska, Hawaii, Louisiana and Massachusetts are ineligible for coverage.


Our verdict

In our State Farm vs. Nationwide analysis, we found that Nationwide charges lower car insurance premiums on average than State Farm across a wide number of driver profiles, with especially strong deals for young drivers and those with poor credit. However, State Farm performs better in J.D. Power consumer surveys, such as the 2023 U.S. Auto Claims Satisfaction Study, and offers more unique discounts than Nationwide.

State Farm vs. Nationwide comparison

Badge 1 Featured

State Farm

State Farm
Rating: 4.3 stars out of 5
Caret Down

Cost & ratings

Rating: 4.3 stars out of 5


Rating: 4 stars out of 5


Rating: 4.4 stars out of 5


Rating: 4 stars out of 5
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Cost & ratings

Rating: 4.3 stars out of 5


Rating: 3.5 stars out of 5


Rating: 4.1 stars out of 5
Robust coverage add-ons and a highly-rated home insurance product could make Nationwide a good fit for drivers seeking to bundle policies with plenty of custom coverage.
Auto Car New
Numerous auto endorsements
Dollar Coin
Strong discount lineup
Auto Car Guides
Two usage-based programs

State Farm pros and cons

  • Local agents

  • A++ AM Best financial strength rating

  • Highly rated mobile app

  • Two safe driving discount programs

  • High average rates for people with bad credit

  • Gap insurance not available

  • No loyalty discount

  • No auto policies in MA or RI

Nationwide pros and cons

  • Gap coverage available

  • Pay-per-mile insurance program available

  • Low average rates for teen drivers and young adults

  • Robust coverage add-ons

  • Not available in AK, HI, LA or MA

  • No loyalty discount

  • No rideshare coverage

  • Below average J.D. Power customer satisfaction score

Is State Farm cheaper than Nationwide?

As car insurance companies adjust their proprietary rating systems, it’s important to compare personalized quotes to determine which carrier is cheapest for you. The average rates below, based on the latest premium data available from Quadrant Information Services in July 2024, give a quick snapshot of how State Farm and Nationwide price insurance for several common driver profiles — but these average rates may not align perfectly with your individual risk profile.

State Farm avg. full coverage premium
Nationwide avg. full coverage premium
State Farm avg. full coverage premium
Nationwide avg. full coverage premium
State Farm avg. full coverage premium
Nationwide avg. full coverage premium
State Farm avg. full coverage premium
Nationwide avg. full coverage premium
State Farm avg. full coverage premium
Nationwide avg. full coverage premium
State Farm avg. full coverage premium
Nationwide avg. full coverage premium

Bankrate's take

State Farm does not write new auto insurance policies for drivers with DUI convictions, so we chose not to include average rates for drivers with this type of driving record. If you have a DUI on your record, you may need to compare quotes from multiple insurers, including nonstandard insurers specializing in coverage for high-risk drivers, in order to find affordable rates.

A few trends stand out in our analysis of average premiums from State Farm and Nationwide. In each category we examined, Nationwide’s average rates were lower than State Farm’s, with State Farm’s rates hovering much closer to the national average and Nationwide’s well below average. In particular, Nationwide’s rating algorithms are notably gentle on poor credit, while State Farm charges prohibitively high premiums, on average, for drivers with poor credit-based insurance scores.

In addition to drivers with subpar credit, drivers with at-fault accidents on their record may find significantly lower rates with Nationwide than State Farm. It’s worth noting that Nationwide allows drivers to purchase accident forgiveness as a policy add-on, while State Farm does not.

State Farm vs. Nationwide: Discounts

In our Nationwide vs. State Farm insurance review, we found that both companies offer extensive ways to save on auto insurance. However, discounts may vary by location and not everyone will qualify for all discounts available. To find out the types of discounts available in your state, you might want to contact local Nationwide and State Farm agents.

Discounts available from both carriers

  • Multi-policy discounts: Both State Farm and Nationwide offer discounts to customers who purchase another insurance product, such as home, renter or life insurance, along with their auto policy. Nationwide advertises an average discount of $646 for home and auto bundles, while State Farm says that customers who bundle home and auto save up to $1,073.
  • Multi-car discounts: Both carriers have discount policies for customers who insure multiple vehicles.
  • Accident-free and safe driving discounts: New State Farm customers with no accidents or violations from the past three years may be eligible for discounts, while Nationwide offers a safe driving discount for drivers who keep a clean record of five years.
  • Good student discounts: Full-time college and high school students with a B average or better may be eligible for discounted rates from both providers.
  • Defensive driving discounts: Both companies offer a discount to certain drivers, especially those 55 and over, who complete approved defensive driving courses. Eligibility varies by state.
  • Anti-theft discounts: If you have an anti-theft device installed in your vehicle, you could qualify for a discount from either State Farm or Nationwide.

State Farm unique discounts

  • Safety and passive restraint discounts: State Farm offers a discount for automobiles equipped with approved certain safety equipment and offers savings on medical-related coverage for vehicles that have passive restraint systems, such as airbags.
  • Drive Safe & Save: State Farm’s usage-based insurance program offers an enrollment discount plus an opportunity to earn up to an additional 30 percent discount for maintaining good driving habits.
  • Steer Clear: In addition to its other safe driving discounts, State Farm offers a safe driving discount program designed specifically for drivers under age 25, which involves learning modules, quizzes, logged practice trips and mentoring by older drivers.
  • Student away at school discount: If you have a college student on your policy who attends school at least 100 miles from home without an automobile, you may be eligible for this discount.
  • Driver training discount: Drivers under age 21 who complete an approved driver training course could be eligible for discounted rates.

Nationwide unique discounts

  • Automatic payments discount: Nationwide offers a one-time discount to policyholders who sign up for automatic payments.
  • Paperless discount: Drivers who set up paperless documents could earn a recurring discount on their policy.
  • SmartRide: Nationwide’s safe driving telematics program offers up to 40 percent off for drivers who share safe driving data with the insurer, with an automatic 10 to 15 percent participation discount.
  • SmartMiles: Nationwide’s mileage-based insurance program features a base rate and cost-per-mile rate, enabling motorists to save on their premiums by reducing their mileage.

State Farm and Nationwide telematics programs

For drivers who consistently maintain safe driving habits, usage-based insurance programs that use telematics to track driving habits may offer savings on car insurance. Nationwide and State Farm both offer safe driving telematics programs, which may provide a discount if you continuously drive safely. However, these programs are not available in all states.

State Farm Drive Safe & Save Nationwide SmartRide
Device Bluetooth beacon and mobile app Mobile app or plug-in device
Can it raise your rate? No No
Availability Available in all states except California, Massachusetts and Rhode Island. Not available to all North Carolina drivers. Available in all states except Alaska, California, Hawaii, Louisiana, New York and Puerto Rico
Discount Capped at 30 percent for New York drivers, higher potential discounts for motorists in other locations 10 to 15 percent enrollment discount, potentially up to an additional 40 percent discount based on driving habits
What it monitors Phone distraction
Fast cornering
Hard braking
Quick acceleration
Quick acceleration
Hard braking
Idle time
Miles driven
Nighttime driving

State Farm vs. Nationwide: Customer experience comparison

Both providers offer mobile apps for Android and Apple devices, with State Farm earning slightly higher ratings based on customer reviews. However, in J.D. Power’s 2023 Auto Claims Satisfaction Study, State Farm ranked much higher than Nationwide, coming in fifth place with an overall claims satisfaction score of 891 out of 1,000. Nationwide, however, ranked 14th, with an overall claims satisfaction score of 875, which is slightly below the industry average.

State Farm Nationwide
Apple store 4.8 of 5 4.7 of 5
Google play 4.6 of 5 4.4 of 5
J.D. Power claims satisfaction 891 / 1,000 875 / 1,000

Customer complaints

The NAIC tracks customer complaints for U.S. insurers and compares each company’s rate of complaints to its market share. A carrier’s NAIC complaint index score indicates whether it receives more or fewer complaints than the industry baseline relative to its size. Scores above 1.00 show a high number of complaints, while any score under 1.00 reflects a low rate of complaints.

State Farm auto insurance customer complaints

State Farm’s 2023 NAIC complaint index score is slightly higher than Nationwide’s at 0.78. That’s still below the industry baseline, but it reflects a small but steady increase in complaints since 2021.

Nationwide auto insurance customer complaints

In 2023, Nationwide received a complaint index score of 0.46 for private passenger auto insurance from the NAIC. In other words, Nationwide receives well below the average rate of complaints relative to its size.

Frequently asked questions


Bankrate utilizes Quadrant Information Services to analyze July 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 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 coverage that meets each state’s requirements. Our base profile drivers own a 2022 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-based insurance scores: 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. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Incidents: 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 and lapse in coverage.

Age: Rates were calculated by evaluating our base profile with the ages 25 and 70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Bankrate Score

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%
  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Written by
R.E. Hawley
Senior Writer, Insurance
R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license in the state of New York.
Edited by Editor II, Insurance