Finding the right car insurance coverage is critical, whether you’re a new or experienced driver. Many drivers turn to State Farm or Nationwide for their car insurance coverage.
State Farm is the largest insurer by market share and serves customers in all 50 states. Nationwide is the 10th-largest insurer, but it doesn’t offer policies in Massachusetts, Louisiana, or Alaska.1
State Farm generally offers more competitive rates for coverage, with an average monthly cost of $56 for liability coverage compared to Nationwide’s $94.
Let’s compare the insurers’ rates, customer experience, discounts, and coverage options.
Though Nationwide and State Farm offer a similar quality of coverage, State Farm has more affordable coverage. The company offers lower average rates across various driver categories, including coverage for teens, seniors, and people with less-than-perfect driving records. State Farm offers diverse discount options, like multi-car and student away-from-school discounts.
However, Nationwide car insurance gives you more policy management options than State Farm through its mobile app and a variety of coverage options, such as gap insurance and new car replacement insurance. Nationwide also has accident forgiveness and a vanishing deductible that State Farm auto insurance doesn’t offer.
Nationwide holds 1.99% of the U.S. market share for private passenger auto insurance premiums, according to the National Association of Auto Insurance Commissioners (NAIC). The company also received a high ranking of 861 out of 1,000 in the J.D. Power 2023 U.S. Insurance Shopping Study — indicating customer satisfaction.2 However, the company doesn’t offer coverage in a few states.
With 16.84% of the U.S. market share for private passenger auto premiums and a strong presence in all 50 states, State Farm sets itself apart with its many discounts and affordable coverage. It consistently ranks highly in claims and customer experience satisfaction from J.D. Power and has an AM Best financial strength rating of A++ (Superior).
Nationwide’s SmartRide and State Farm’s Drive Safe & Save programs incentivize safe driving through discounts, yet the companies’ telematics programs have a few key differences.
SmartRide offers a 15% discount for joining, which can increase up to 40% depending on your driving behavior. While poor driving behavior won’t directly raise your car insurance rates, it can lower your earned discount and lead to higher premiums. The program tracks mileage and time on the road, so high mileage and nighttime driving can increase rates.
State Farm’s Drive Safe & Save program also offers a discount at signup, and safe driving habits can earn you savings of up to 30%. It stands out by allowing your newer vehicle to transmit data to State Farm in addition to the smartphone app. However, your driving habits may change your discount when your plan renews, making the cost of your premium unpredictable.
Regarding affordability, State Farm car insurance generally offers cheaper coverage. On average, Nationwide customers pay $94 per month for liability coverage and $177 for full coverage.
For comparison, the average cost of coverage from State Farm is $56 for liability and $110 for full coverage.
The cheapest option for you can vary depending on your location, driving history, and vehicle type, so you should consider these various factors when comparing auto insurance companies.
For people maintaining a clean driving record, State Farm offers more affordable monthly liability insurance quotes, consistently being the less expensive choice with its lower premiums.
State Farm is the better choice for drivers with a speeding ticket, offering lower average liability prices than Nationwide.
With a much lower average monthly cost for liability coverage than Nationwide, State Farm is the clear winner for young drivers.
Drivers with a poor credit score may earn cheaper average liability coverage from State Farm.
State Farm offers lower rates for liability coverage for senior drivers.
When comparing coverages, you’ll notice some common offerings from Nationwide and State Farm. Both have the core coverages most drivers look for, like bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorist coverage, collision, and comprehensive insurance.
But the real difference comes into play with the coverage add-ons. Consider gap insurance, for example, which is vital for people financing or leasing cars. It’s available with Nationwide but not from State Farm. This alone could be a key factor in making an informed decision.
Below, you can take a closer look at what add-on coverages each company offers.
Exploring opportunities to save with Nationwide and State Farm reveals various discounts tailored to different drivers. Nationwide, while having higher rates overall, offers an autopay discount — a simple yet effective way to cut insurance costs you can’t get with State Farm.
State Farm generally has more discount options, including multi-car policies and special savings for students living away from home, which Nationwide doesn’t match. But if you don’t hit the road often, Nationwide’s low-mileage discount could offer the lowest rates and sway your decision.
Nationwide and State Farm are two of the best insurance companies, which can make it difficult to decide between the two companies. The following information should help you make your decision.
Progressive has the second-largest market share, making it one of State Farm’s biggest competitors. Progressive doesn’t score quite as well in J.D. Power’s customer satisfaction index ranking, and it has slightly higher average car insurance rates. Still, Progressive offers accident forgiveness and a vanishing deductible you won’t find through State Farm.
Yes. Nationwide is a strong insurance company. It offers a variety of insurance products and earns high marks for financial stability from AM Best, Moody’s, and S&P.
The main differences between State Farm and Nationwide insurance coverage are the add-on options and pricing strategies. Nationwide offers more specialized coverages like gap insurance, while State Farm often has cheaper rates and a broader range of discounts.
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