State Farm vs Nationwide

Founded in 1922, State Farm Insurance ranks number one in direct premiums written, according to the most recent National Association of Insurance Commissioners (NAIC) data. The provider offers a wide variety of automobile and property insurance products, along with small business, disability, health and personal liability insurance coverages. Additionally, State Farm offers a portfolio of banking products, including checking and savings accounts, as well as retirement plans and home loans.

According to the NAIC, Nationwide Insurance ranks 10th in direct premiums written. The carrier sold its first auto insurance policy in 1926 and today writes policies in most U.S. states. Besides car insurance, Nationwide also offers home, life, long-term care and specialty health insurance products. Like State Farm, Nationwide also offers retirement plans, along with annuities and mutual funds.

• Bankrate Score methodology

  Our 2023 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.Like our previous Bankrate Scores, 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. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 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 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.

  Tier scores are unweighted to show the company’s true score in each category out of a possible five points.

State Farm vs. Nationwide comparison

Nationwide and State Farm Insurance offer similar product lines, but their coverage offerings, discounts and pricing differ. Bankrate’s deep-dive comparison can help you decide which insurer offers the best and cheapest coverage for you.

State Farm pros and cons

Nationwide pros and cons

Is State Farm cheaper than Nationwide?

Based on data provided by Quadrant Information Services, State Farm offers lower average full and minimum coverage rates than Nationwide. Evaluating average rates can help you decide which insurance company best fits your needs and budget, but rates vary by individual, so for the most accurate cost estimates, request quotes from both insurers.

• Car insurance rates methodology

  Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 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 2021 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.

Nationwide is generally cheaper for drivers with poor credit

According to the NAIC, all states except California, Hawaii, Maryland, Massachusetts and Michigan allow insurance companies to use your credit-based insurance score as a rating factor when determining your insurance premiums. According to our research, State Farm charges higher rates than Nationwide to policyholders with poor credit, on average.

Average annual cost for full coverage car insurance by credit tier

• Rates by credit tier methodology

  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 restrict the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Nationwide is generally cheaper for young drivers

Statistically, teen drivers are involved in more traffic accidents than more experienced motorists. To offset this risk, insurers charge teen drivers higher rates in most states. Hawaii and Massachusetts do not allow insurers to use age as a rating factor; however, in Massachusetts, insurance companies can use years of driving experience as a factor, so younger drivers still typically pay more for car insurance in that state. In our comparison, we found that Nationwide offers lower average teen driver rates than State Farm.

Average annual full coverage car insurance premium for drivers on their parents’ policy

• Rates by age on parents’ policy methodology

  The rates displayed reflect the total cost of a 16- through 20-year-old driver and their married parents’ on one full coverage policy.

  Nationwide is generally cheaper for adult drivers

  Bankrate’s analysis found that Nationwide has lower average rates than State Farm for drivers aged 25, 30 and 60, but higher average rates for people aged 40. Bear in mind that insurers employ several factors, including your annual mileage, ZIP code and the type of vehicle you drive, when setting premiums. For the most accurate estimates, you might want to request quotes from both insurers.

Average annual full coverage car insurance premium for drivers on their own policy

• Rates by age on own policy methodology

  Rates were calculated by evaluating our base profile with the ages 18-60 (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, although Massachusetts does allow insurers to factor in years of driving experience.

Nationwide is generally cheaper for high-risk drivers

Generally, Nationwide offers lower rates to drivers who have had driving infractions on their record, except for DUI convictions. Bear in mind that while Bankrate has included average DUI rates in this comparison, some insurance companies will not write policies for motorists who have a DUI conviction on their record.

Average annual full coverage car insurance premium by driving record

• Rates by driving record methodology

  Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

State Farm vs. Nationwide: Discounts

In our State Farm vs. Nationwide analysis, we found that Nationwide offers a few more potential car insurance discounts than State Farm. 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.

State Farm unique discounts

• Safety and security device discounts: State farm offers a discount for automobiles equipped with approved anti-theft devices and offers a savings on medical-related coverage for vehicles that have passive restraint systems such as air bags.
• Bundling discounts: Policyholders who buy policies for more than one vehicle may earn up to a 20 percent discount. You might also qualify for a discount when bundling car insurance with a condominium, home, life or renters insurance policy.
• 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.

Nationwide unique discounts

• Automatic payments discount: Nationwide offers a one-time discount to policyholders who sign up for automatic payments.
• Defensive driving discount: Policyholders aged 55 or older may qualify for a discount by completing a state-approved defensive driving course.
• Good student discount: College and high school students ages 16 to 24 may qualify for an auto insurance discount if they maintain at least a “B” grade point average.
• SmartMiles: Nationwide’s mileage-based insurance program features a base rate and cost-per-mile rate, enabling motorists to save on their premium by reducing their mileage.

Usage-based insurance comparison: State Farm vs. Nationwide

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

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 2022 Auto Claims Satisfaction Study, State Farm ranked much higher than Nationwide, coming in seventh place with an overall claims satisfaction score of 882 out of 1,000. Nationwide, however, ranked 13th, with an overall claims satisfaction score of 868, which is below the industry average.

Frequently asked questions

• • Do State Farm and Nationwide offer homeowners insurance?

    Yes. Both insurers offer homeowners insurance as well as condominium and renters insurance. Additionally, Nationwide and State Farm offer bundling discounts to qualified customers who purchase auto and home insurance policies.

  • What is the best car insurance company?

    Choosing the best car insurance company may depend on your specific needs. For instance, you may need an insurer that offers gap insurance or the lowest teen driver rates. When shopping for auto insurance, request quotes from several insurance companies and compare coverages, discounts and rates to see which insurer is best for your situation.

  • How much car insurance should I have?

    In every state where car insurance is required, drivers must carry a minimum amount of coverage in order to drive legally. However, you can choose to raise your liability coverage limits for more financial protection, or upgrade to a full coverage policy if you want financial protection for damage to 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 $2,014 per year for a full coverage policy and $622 for minimum coverage. However, the exact rate you will pay will vary based on personal factors, which commonly include your ZIP code, claim history and driving record. For an accurate estimate of rates, request auto insurance quotes from several insurance companies.

  • Which company has the cheapest rates, State Farm or Nationwide?

    Both State Farm and Nationwide offer competitive rates for many drivers in the U.S. However, finding the cheapest rates from State Farm or Nationwide depends on your personal factors, such as location, driving history, vehicle make and model and the miles driven per year. Comparing both carriers with the same coverage selections and limits is the best way to find out which company offers the cheapest rates while meeting your coverage needs.