Cheapest company - State Farm
Best unique coverages - Nationwide
Compare State Farm vs. Nationwide to Find Out Which Is Best for You
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Verdict
State Farm sells the cheapest policies for the average driver. Both State Farm and Nationwide have high customer satisfaction scores, but Nationwide receives fewer complaints. Nationwide also offers more unique types of coverage than State Farm.
State Farm is cheaper in more states than Nationwide and is also a more affordable option for drivers who are students or have accidents, tickets, or DUIs on their record. Nationwide has cheaper insurance for borrowers with poor credit.
State Farm is good for drivers looking for low rates.
Nationwide is good for drivers with poor credit, those looking for different coverage options or people who value high-quality customer service.
Is State Farm or Nationwide Cheaper Overall?
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State Farm offers cheaper car insurance overall, with an average cost of $1,235, while Nationwide has an average cost of $1,341. However, rates at the national level may not match up with rates where you live. Rates can also differ based on your age, driving history and even your credit score.
The above averages are for a sample driver with a safe driving record, a full coverage policy and 100/300/100 liability limits. If you'd like a more personalized quote, you can use the MoneyGeek auto insurance cost calculator to get an anonymous quote based on various factors.
Is State Farm or Nationwide Cheaper in Your State?
State Farm is cheaper than Nationwide in the majority of states where MoneyGeek has sample rates for both companies. That said, the average cost of car insurance can vary widely from state to state, so it may not be true that State Farm is cheaper where you live. We recommend getting a personalized quote from both insurers to ensure you’re getting the best deal possible.
Of the 29 states MoneyGeek has insurance rates for both companies, State Farm is cheaper than Nationwide in 21 states, while Nationwide is cheaper than State Farm in eight states.
While State Farm offers coverage in all 50 states and the District of Columbia, Nationwide doesn’t sell insurance in:
- Alaska
- Hawaii
- Louisiana
- Massachusetts
Average Cost Per State
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- StateState Farm Annual PremiumNationwide Annual Premium
- Alabama$1,235$1,814
- Alaska$954Not Available
- Arizona$1,253$1,096
- Arkansas$1,012$1,018
- California$1,526Not Available
- Colorado$1,158$1,214
- Connecticut$1,324$1,491
- District of Columbia$1,161$1,790
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Is State Farm or Nationwide Cheaper for Your Age and Driving History?
In addition to location, factors like age, credit score and driving history can also affect your auto insurance rates. Different insurers weigh these factors differently, which is why it’s always a good idea to shop around for rates when purchasing car insurance. State Farm tends to be cheaper for drivers with tickets, accidents or DUIs, while Nationwide is usually less expensive for drivers with poor credit.
- State Farm is cheaper for an 18-year-old student driver.
- State Farm is cheaper for a driver with a ticket.
- State Farm is cheaper for a driver with an at-fault accident.
- State Farm is cheaper for a driver with a DUI.
- Nationwide is cheaper for a driver with poor credit.
Because car insurance rates largely depend on personal information, we recommend comparing quotes from different companies to see which one is most affordable for you.
Average Car Insurance Rates by Driver Profile
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- Driver ProfileState Farm Annual PremiumNationwide Annual Premium
- 18-Year-Old Student$3,083$3,629
- Driver With a Ticket$1,360$1,485
- Driver With an Accident$1,434$1,903
- Driver With a DUI$2,222$2,582
- Driver With Poor Credit$2,531$1,780
State Farm vs. Nationwide: Which Is Better for Discounts?
Car insurance companies tend to offer similar discounts, so you should look for the insurer with the greatest total savings when comparing discounts. Two of the most significant discounts offered are home and auto bundle discounts and behavior and usage-based discounts. State Farm has a better bundling discount, while Nationwide has better behavior and usage-based discounts.
State Farm offers a competitive bundling discount of 25% off, while Nationwide’s bundling discount is only 10%. The average home and auto bundle discount among major insurers is 17%.
Nationwide has the edge when it comes to usage and behavior-based discounts. The company offers two separate programs: SmartRide — which measures miles driven, hard braking and acceleration, idle time and nighttime driving — and SmartMiles — which charges a variable rate depending on how many miles you drive. State Farm only has one behavior-based discount, which measures quick acceleration, hard braking, fast cornering, speeding, and distracted driving.
Available Discount by Company
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- DiscountAvailable With State Farm?Available With Nationwide?
- Safe driving✔✔
- Defensive driving✔✔
- Good student✔✔
- Driver's education✔
- Distant student✔
- New vehicle✔
- Air bag✔
- Anti-theft system✔✔
State Farm vs. Nationwide: Which Has Better Customer Service?
MoneyGeek measures customer experience based on how satisfied customers are, according to J.D. Power, and how often they lodge complaints tracked by the National Association of Insurance Commissioners (NAIC). The best auto insurance companies have few complaints and high customer satisfaction ratings.
State Farm has a higher customer satisfaction score, while Nationwide receives far fewer customer complaints. Because of Nationwide’s exceptionally low volume of customer complaints, it wins for customer service.
State Farm vs. Nationwide: Customer Satisfaction Rating
State Farm ranks higher for J.D. Power customer satisfaction points, with a score of 837 out of 1,000. Nationwide scores 822. State Farm has high marks across the board for first notice of loss, the estimation and repair process, claims servicing and settlement.
First Notice of Loss:
4/5
Estimation of Process:
4/5
Repair Process:
4/5
Claims Servicing:
4/5
Rental Experience:
3/5
Settlement:
4/5
First Notice of Loss:
4/5
Estimation of Process:
4/5
Repair Process:
4/5
Claims Servicing:
4/5
Rental Experience:
4/5
Settlement:
4/5
State Farm vs. Nationwide: Customer Complaint Ratio
According to the NAIC, Nationwide has a complaint ratio of .53 — nearly half of the average among all providers (1), meaning it receives far fewer complaints than the average insurance company. State Farm scored 1.28, meaning it gets slightly more complaints than the average company.
State Farm vs. Nationwide: Coverage Options
Every car insurance company offers standard coverages like liability insurance, comprehensive and collision insurance, uninsured motorist insurance and personal injury protection. In addition to these typical coverages, some insurance companies also offer additional types of coverage.
Nationwide has a clear advantage when it comes to custom coverage options. They offer roadside assistance, rental car and travel reimbursement, accident forgiveness, gap insurance, deductible modification, identity theft coverage and a total loss deductible waiver. In contrast, State Farm only offers roadside assistance, rental car and travel reimbursement, and rideshare insurance.
Coverage Options by Company
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- CoverageAvailable With State Farm?Available With Nationwide?
- Rental Car and/or Travel Reimbursement✔✔
- Roadside Assistance✔✔
- Rideshare Insurance✔
- Rental Car and/or Travel Reimbursement✔✔
- Roadside Assistance✔✔
- Accident Forgiveness✔
- Deductible Modification✔
- Total Loss Deductible Waiver✔
State Farm vs. Nationwide: Which Is More Financially Stable?
State Farm has slightly higher financial stability ratings than Nationwide, receiving an A++ rating from AM Best compared to Nationwide’s A rating.
That said, these insurers are both extremely financially stable companies. Financial stability is important because it means that the insurance company will be more likely to be able to pay you should you need to file a claim.
State Farm vs. Nationwide: Online Tools
Both State Farm and Nationwide have a variety of online tools for customers to use. State Farm features an easy online quote process and the ability to file and track claims online. Nationwide allows you to pay bills, file claims and manage your account on their website or mobile app.
Methodology
Data on car insurance rates comparing State Farm and Nationwide are for a 40-year-old male with a full coverage car insurance policy, unless otherwise noted. The policy includes:
- $100,000 on bodily injury liability insurance per person
- $300,000 on bodily injury liability insurance per accident
- $100,000 on property damage liability insurance per person
- Comprehensive and collision insurance with a $1,000 deductible
To evaluate available coverages, discounts and online tools, MoneyGeek collected information from insurer websites and quote tools. To score insurance companies on customer satisfaction and customer complaints, MoneyGeek referenced publicly available data from J.D. Power and the National Association of Insurance Commissioners (NAIC). Financial stability was measured using financial strength ratings from A.M. Best, a leading insurance credit rating agency.
About Margaret Wack
sources
- State Farm. "Browse Nearby Insurance Agents in Your State." Accessed October 8, 2021.
- Nationwide. "Car insurance quotes by state." Accessed October 8, 2021.
- Nationwide. "Insurance and Financial Services Company." Accessed September 30, 2021.
- State Farm. "Auto, Life Insurance, Banking, and More. Get a Free Quote." Accessed September 30, 2021.