State Farm and Nationwide are among the most recognizable brands in the car insurance marketplace. State Farm tops the list of the largest auto insurance companies, but No. 8 Nationwide also provides a broad range of coverage to drivers across the United States.
Choosing the biggest provider only because it’s the largest company doesn’t necessarily mean it’s the best choice for you. Continue reading to compare these insurers’ coverage, price, discounts, and more.
Check out our State Farm car insurance review and Nationwide car insurance review for more information.
State Farm and Nationwide offer standard car insurance coverage such as:
Read our article on common types of auto insurance to learn more about basic coverage.
Many drivers choose to enhance their basic policy with add-ons. Some optional coverage from State Farm or Nationwide may not be available in all states.
Nationwide offers guaranteed asset protection, commonly known as GAP insurance. This product covers the difference between your car’s value and what you owe on your car lease or loan.
Insurance companies use many variables to set the price of premiums. Factors that affect insurance rates include your driving record, age, gender, geographic location, creditworthiness, vehicle type, how much you drive, and other variables.
Every driver has a customized insurance policy with a unique rate based on those factors. According to The Zebra, State Farm’s average monthly premium cost is somewhat higher than Nationwide, which offers lower rates in the car insurance cost spectrum.
This table compares average annual premiums between State Farm and Nationwide by age tier.
| Age Group | State Farm | Nationwide |
| Teens | $5,820 | $3,624 |
| 20s | $2,379 | $1,582 |
| 30s | $1,585 | $1,582 |
| 40s | $1,587 | $1,151 |
| 50s | $1,558 | $1,114 |
| 60s | $1,485 | $1,028 |
Source: The Zebra
Most insurers encourage customers to take advantage of bundling auto insurance with home, renters, boat, motorcycle, or another insurance policy. Combining policies can potentially generate significant savings, especially from Nationwide, so be sure to ask about multi-policy and multi-vehicle bundling options.
Policyholders may be eligible for some of the many discounts and perks offered by the companies:
Both companies have telematics programs, which monitor driving habits to determine the premium. Other discounts may be available to eligible customers.
The cost of coverage should not be your only consideration when shopping for a car insurance policy. Some drivers argue that you get what you pay for and that higher prices lead to better service. Regardless of how much you pay for insurance, your carrier should provide good customer service, quickly respond when you need help, and pay submitted claims.
Most insurance companies receive mixed reviews for their service. The J.D. Power 2021 U.S. Auto Insurance Study provides key insights from the responses of nearly 39,000 car insurance customers. The survey measures criteria regarding customer satisfaction:
Survey results indicate that this is where State Farm and Nationwide differ the most. In most regions, J.D. Power ranks State Farm as “above average” in claims and customer satisfaction.” Nationwide earned among the lowest of marks in the study of customer satisfaction in the auto insurance market. The insurer was “below average” in five regions.
A.M. Best assesses insurance companies’ ability to meet their ongoing policy and contractual obligations. According to The Zebra, State Farm achieves an “excellent” rating, and Nationwide’s standing is “superior.” These ratings indicate that both carriers have the financial strength to cover their customers’ claims.
Car insurance is a personal matter that requires many considerations. There isn’t a one-size-fits-all solution. Because your needs are unique, you should request a quote from State Farm, Nationwide, and other insurance companies to get the cost of a customized policy with the coverage you need.
Both Nationwide and State Farm offer standard coverage that likely will suit your situation. Nationwide typically has lower average premiums. However, State Farm earns more favorable ratings regarding customer satisfaction.
Most importantly, it’s crucial to understand the details of what is covered and what is not covered before renewing or signing a new insurance policy, especially before buying a new or used car.
