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State Farm is the largest auto insurance company in the country, with a market share of just over 16%, according to the Insurance Information Institute (Triple-I). Now after a century of operations, State Farm has written more than 83 million insurance policies in all 50 states and employs more than 19,000 independent agents. State Farm offers a large, local network of agents, but relies heavily on the digital experience too. It provides online and mobile app policy management options for greater convenience.
Nationwide is based in Columbus, Ohio, and was founded in 1925. The company is in the top 10 largest car insurance companies, with 2.3% of the total market share. Nationwide has written insurance policies in all 50 states as well, and has more than 11,000 independent agents. Like State Farm, Nationwide has a strong network of local offices and also offers numerous customer service channels, including online and through a highly-rated app. While there are many similarities between the two large insurance providers, there are enough differences worth considering for your personal auto insurance needs.
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. Bankrate Scores use a five-point scale and consider factors like coverage options and digital experience, in addition to third-party ratings and rates, which offer a well-rounded view of an insurance provider .
While both companies have strong ratings from A.M. Best and J.D. Power and 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|
Rates by credit score
Your credit score is one of the factors that will impact your car insurance rate in most states. Insurance providers pull information about your credit profile from the three credit bureaus to further determine your risk, which is considered your insurance score. The only states that do not allow insurance companies to look at credit scores are Hawaii, California, Michigan, Massachusetts. Washington’s previous ban on credit use as a rating factor is currently paused due to court hearings.
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|
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 at-fault accidents. The following table showcases the average annual cost for full coverage 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 Massachusetts. Your rates will vary from these averages based on individual circumstances.
|Car insurance company||Age 16*||Age 18||Age 25||Age 30||Age 40||Age 60|
*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||At-fault accident||DUI conviction|
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 policies. 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:
- 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.
- Bundling discount — If you own another policy with State Farm, such as a home, condo, renters or life insurance policy, then you can take advantage of bundling savings by adding on auto insurance.
- 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.
- Multi-policy — Nationwide offers a multi-policy discount program where you could earn added savings on auto insurance if you have renters, home, life, boat or another auto insurance policy with Nationwide.
State Farm vs. Nationwide: online and mobile experience comparison
In terms of online experience, State Farm and Nationwide are two of the best among the long list of 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:
- 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.
- 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
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-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 the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts, and Michigan.
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. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket conviction, single DUI conviction (BAC of >= .08) and lapse in coverage.
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.