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Nationwide and State Farm are giants in the insurance industry. While both are reputable companies with a broad range of coverage options and discount programs, Nationwide edges out State Farm in claims satisfaction. However, State Farm generally has lower rates than Nationwide for all types of drivers.
In full disclosure, I've been a long-time State Farm customer and appreciate State Farm's personalized experience. Nationwide has a smaller agent network than State Farm, and State Farm's mobile app is rated slightly higher than Nationwide's. For those (like me) who prioritize customer service, State Farm may be the better choice.
How we evaluate products
FinanceBuzz researches a number of factors in each auto insurance provider to create our reviews. These factors include cost and discounts, complaints and customer satisfaction, coverage, and ease of use. We also gather information from sources such as Insurify, J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC), and the Better Business Bureau to ensure we provide the most useful information to our readers.
State Farm pros and cons
- Larger agent network
- Cheaper liability and full coverage policies than Nationwide
- Offers rideshare insurance
- Not available in Rhode Island or Massachusetts
- Doesn't offer GAP coverage
Learn more in our State Farm review.
Nationwide pros and cons
- Customers in some states are eligible for accident forgiveness
- Offers both telematics and usage-based programs
- Stronger claims satisfaction rating from J.D. Power
- Smaller agent network
- Not available in Alaska, Hawaii, Louisiana, or Massachusetts
- The SmartMiles program isn't available in Alaska, Hawaii, Louisiana, North Carolina, New York, or Oklahoma
Learn more in our Nationwide review.
Which company is better?
Both State Farm and Nationwide are big-name insurers. Although Nationwide is available in most states, residents of Alaska, Hawaii, Louisiana, or Massachusetts don't qualify for its auto coverage. State Farm is more widely available to residents of every state except Rhode Island and Massachusetts.
If you're a resident of one of the states where both companies offer auto insurance, consider the following factors:
| State Farm | Nationwide | |
| AM Best | A++ (Superior) | A (Excellent) |
| J.D. Power claims satisfaction | 6th out of 21 | 4th out of 21 |
| BBB | F (Unaccredited) | A+ (Accredited) |
| NAIC complaints (private passenger) | 0.84 | 0.70 |
Get rewarded with savings for having a clean driving record.
Car insurance can be so simple. And so affordable.
Enjoy personalized policies, comprehensive coverage & more.
Drivers who switch their auto insurance and save with State Farm save $764 on average!
Financial stability
Financial stability is a measure of a company's ability to meet its financial obligations. It's a key factor to consider when choosing an insurer, since you want to know the company will be around for the long haul and pay out claims. AM Best, a credit rating agency that primarily focuses on the insurance industry, issues its financial strength ratings for companies each year.
State Farm has AM Best's highest rating, "A++" (Superior). Nationwide also has a positive rating, "A" (Excellent), but it ranks below State Farm in terms of financial strength.
Customer satisfaction
In the 2024 J.D. Power U.S. Auto Claims Satisfaction Study, both Nationwide and State Farm scored above the industry average. But Nationwide beat State Farm; it was ranked fourth out of 21 companies, while State Farm was sixth. The study evaluated companies on several factors, including customer trust levels, the perceived fairness of settlements, the ease of submitting and resolving claims, and communication.
The NAIC looks at how many customer complaints insurers have compared to other companies based on their market size. While both Nationwide and State Farm have an NAIC complaint index below the national average, Nationwide has a slightly lower complaint volume.
Additionally, State Farm has a Better Business Bureau rating of "F," partly for having many unanswered and unresolved customer complaints, and isn't accredited. Nationwide has the highest A+ rating and is accredited.
Average rate:
Accessibility
State Farm and Nationwide both sell policies through agents, by phone and online. State Farm has a larger network of agents than Nationwide, so for those who prefer the convenience of a local agent, this insurer may be the better option. For me, having a person nearby I know and trust to go to with questions is a huge benefit.
Which company is cheaper?
Which company offers lower car insurance premiums depends on your location, driving record, selected coverages, and many other factors. In general, I found that State Farm is cheaper across the board for drivers seeking a liability-only or full coverage policy.
Here's a look at how State Farm's average rates across driver type:
| Driver type | State Farm liability-only monthly premium | State Farm full-coverage monthly premium |
| Clean driving record | $53 | $115 |
| Speeding ticket on driving record | $63 | $136 |
| At-fault accident on driving record | $66 | $143 |
| DUI on driving record | $86 | $186 |
| Teen driver | $98 | $212 |
| Senior driver (60s) | $38 | $83 |
| Senior driver (70s) | $34 | $74 |
| Data sourced from Insurify | ||
And here are Nationwide's for comparison:
| Driver type | Nationwide liability-only monthly premium | Nationwide full coverage monthly premium |
| Clean driving record | $84 | $176 |
| Speeding ticket on driving record | $103 | $217 |
| At-fault accident on driving record | $107 | $227 |
| DUI on driving record | $135 | $285 |
| Teen driver | $160 | $338 |
| Senior driver (60s) | $55 | $116 |
| Senior driver (70s) | $53 | $111 |
| Data sourced from Insurify | ||
Clean driving record
For those who have a clean driving history and want full coverage policies, State Farm is much cheaper than Nationwide. On average, drivers pay $115 per month for coverage with State Farm, while drivers with Nationwide pay $176 per month.
Speeding ticket on driving record
If you have a speeding ticket on your record, State Farm tends to be much cheaper than Nationwide. Drivers typically pay $136 per month for full coverage — less per month than Nationwide's $217 average.
At-fault accident on driving record
An at-fault accident can substantially affect your premiums. With State Farm, you'll pay about $143 per month for full coverage, while Nationwide averages much more at $227.
DUI on driving record
A DUI causes the steepest increases in car insurance rates. With State Farm, your rate for full coverage would average $186 per month. With Nationwide, you'd average $285 per month.
Teen driver
Teens will also pay less for car insurance with State Farm than with Nationwide. On average, teen drivers pay $212 per month for full coverage with State Farm — less than the average rate of $338 per month for drivers who choose Nationwide.
Senior driver
Seniors usually pay less for car insurance. For full coverage policies, State Farm's premiums average just $83 per month for drivers in their 60s and $74 for drivers in their 70s. Nationwide's monthly premiums for these drivers average $116 and $111, respectively.
Discounts
I'm always looking to cut costs, but I don't want to sacrifice customer service or coverage. For drivers like me, discount programs allow me to reduce my car insurance premiums without adjusting my insurance policy.
Both Nationwide and State Farm have multiple discount programs, but State Farm has more options. Some standout discounts that State Farm offers (and Nationwide doesn't) include discounts for military service members, away-from-home discounts for college students, and loyalty discounts for long-time customers.
| Discount | Does State Farm have it? | Does Nationwide have it? |
| Loyalty | Yes | No |
| Multi-policy/bundling | Yes | Yes |
| Multiple vehicle | Yes | Yes |
| Airbag | Yes | No |
| Anti-lock brakes | Yes | No |
| Anti-theft | Yes | Yes |
| Safe driver | Yes | Yes |
| Good student | Yes | Yes |
| Away-from-home student | Yes | No |
| New car | No | No |
| Pay in full | Yes | Yes |
| Automatic payments | No | Yes |
| GAP insurance | No | Yes |
| Senior | No | No |
| Military | Yes (Select states) | No |
| Defensive driving course | Yes | Yes |
State Farm Drive Safe & Save vs. Nationwide SmartRide and SmartMiles
Because I work from home and don't have a daily commute, I tend to drive fewer-than-average miles, so participating in a telematics program or a usage-based insurance policy can allow me to save money on car insurance.
State Farm and Nationwide have programs you can use to reduce your rates based on your mileage or driving habits.
State Farm's Drive Safe & Save
If you use the Drive Safe & Save app, State Farm bases your premiums on your driving habits. You can qualify for a discount just for signing up, and maintaining safe driving habits can help you reduce your premiums by up to 30%.
Drive Safe & Save isn't available in California, Massachusetts, or Rhode Island. Some North Carolina residents also might not have access to the program.
Nationwide's SmartRide
With SmartRide, you can save up to 40% on your policy. As this is a discount program, participants will only ever see their rates decrease, not increase.
Nationwide's SmartMiles
SmartMiles is a pay-per-mile insurance program. It bases your premiums on how many miles you actually cover. SmartMiles isn't available in Alaska, Hawaii, Louisiana, New York, North Carolina, or Oklahoma.
Coverage
Although both companies provide solid coverage options for most drivers, there are a few scenarios when one company may be a better fit than the other:
- You need rideshare insurance: If you drive for a rideshare company like Uber or Lyft or a delivery service like DoorDash or Uber Eats, you may need a rideshare policy for when your service-provided coverage isn't active. Nationwide doesn't offer rideshare insurance, but State Farm allows customers to add this coverage to a personal policy.
- You need guaranteed asset protection (GAP) insurance: If you're in an accident and your car is declared a total loss or stolen, GAP coverage pays the difference between your car's value and your remaining auto loan or lease balance. Unlike State Farm, Nationwide offers customers GAP coverage, which your lender or lease company may require.
Below is a breakdown of what coverages these companies offer:
| State Farm | Nationwide | |
| Collision | Yes | Yes |
| Comprehensive | Yes | Yes |
| Liability | Yes | Yes |
| Medical payments | Yes | Yes |
| Uninsured/Underinsured | Yes | Yes |
| Rideshare | Yes | No |
| RV insurance | Yes | Yes |
| ATV & off-road vehicle insurance | Yes | Yes |
| Motorcycle insurance | Yes | Yes |
| Antique/collector cars | Yes | Yes, through Hagerty |
| GAP | No | Yes |
FAQs
How do I contact State Farm?
State Farm allows customers to reach out in several ways. You can talk directly to a local agent, or you can call its general customer support line at 1-800-782-8332. State Farm also has a powerful mobile app, or you can use its online chat feature.
How do I contact Nationwide?
You can contact Nationwide by reaching out to a local agent or by calling its customer support department at 1-877-669-6877 on weekdays from 9 a.m. to 8 p.m. ET.
Which insurance is better, State Farm or Nationwide?
No specific company is better for every driver. For those looking for affordability over everything else, State Farm may be the better option. However, those who need GAP insurance or prefer a better claims experience may prefer Nationwide.
Bottom line
There's a reason State Farm and Nationwide are such well-known companies: They're leaders in the industry, offering broad coverage options and discounts. Whether you've got a spotless or blemished driving history, State Farm is likely cheaper, regardless of your age. But if you're willing to pay more for better claims satisfaction, Nationwide might be worth the extra cost.
Before selecting any company, get quotes from several insurers. You can compare quotes from the best car insurance companies and save money.
Average rate:
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