Nationwide vs. State Farm Car Insurance: Expert Recommended (2024)

Navigating the auto insurance market can be perplexing, with a multitude of factors influencing rates. Our analysis zooms in on two industry giants, Nationwide and State Farm, unveiling a compelling narrative of how these titans fare across critical customer parameters. As we dissect the data, it becomes evident that, depending on your clean driving record, tickets, accidents, DUI history, or credit score, one company emerges as the frontrunner in offering the most advantageous rates. Stay tuned as we decipher the intricacies, providing a roadmap to help you identify the company that aligns perfectly with your unique profile and preferences.

Nationwide Car Insurance

Pros:

• Good for Drivers with Bad Credit: Nationwide is recommended for drivers with bad credit, offering competitive rates.
• Teen Driver Rates: Both Nationwide and State Farm offer similar rates for teen drivers, making Nationwide a viable option.
• Discount Options: Nationwide provides a variety of discounts, including anti-theft, safe driver, and usage-based programs, offering potential cost savings.

Cons:

• Credit Score Impact: Nationwide may increase rates significantly for drivers with good or fair credit, potentially resulting in higher premiums.

State Farm Car Insurance

Pros:

• DUI-Friendly Rates: State Farm is a preferable choice for drivers with a DUI on their record, offering substantial savings.
• Good for Drivers 25 and Older: State Farm tends to have rates approximately 13% cheaper for drivers 25 and older compared to Nationwide.
• Discounts: State Farm offers discounts for multiple vehicles, good students, low mileage, and usage-based programs.

Cons:

• Not Ideal for Bad Credit: State Farm may not be the best choice for individuals with bad credit, as rates could be higher for this demographic.
• Limited Discounts: State Farm offers fewer discounts compared to Nationwide, potentially limiting cost-saving opportunities.

Overall Verdict: State Farm Leads the Way

After a thorough examination of Nationwide and State Farm car insurance, State Farm emerges as the unequivocal superior option. State Farm consistently outperforms Nationwide across various factors, making it the recommended choice for drivers seeking optimal rates, flexible credit score options, and substantial discounts.

Rates: State Farm’s rates prove to be consistently advantageous, especially for drivers aged 25 and older, with an average of 13 percent cheaper rates compared to Nationwide. State Farm also stands out for drivers with a DUI on their record, offering substantial initial savings of almost $1,000.

Credit Score: State Farm caters to a broad audience by excelling for individuals with good or fair credit. While Nationwide is preferable for those with bad credit, State Farm’s flexibility, especially in the case of financial hardship, makes it the superior choice overall. (For more information, read our “Best Car Insurance for Drivers with Bad Credit“).

Discounts: In the realm of discounts, Nationwide offers a commendable 23 options, but State Farm’s 16 are no less competitive. Notably, State Farm’s discounts, especially for using their driving app or device, provide substantial savings, making it a compelling choice.

State Farm emerges as the preferred choice when all factors are considered. With consistently advantageous rates, flexibility in credit score considerations, competitive discounts, and high customer satisfaction, State Farm solidifies its position as the superior option in the Nationwide vs. State Farm car insurance comparison.

Is Nationwide or State Farm Car Insurance Cheaper Based on age?

It’s completely fair for car insurance companies to base rates on your age. After all, the more experience driving we have, the better drivers we become. Some states will also base your car insurance rates on gender and/or marital status, though several states have outlawed this practice.

Nationwide vs State Farm Average Annual Auto Insurance Rates by Age, Gender, and Marital Status

For those 25 and older, State Farm car insurance rates are an average of 13 percent cheaper than Nationwide car insurance rates.

Both Nationwide and State Farm are good choices if you have a teen driver. Rates for teen drivers average about the same for both companies.

Interestingly, with State Farm, males and females 35 and older and 65 and older pay the same rate regardless of gender.

Is Nationwide or State Farm Car Insurance Cheaper Based on Driving Record?

Speeding tickets, accidents, DUIs, and other traffic violations will increase your Nationwide and State Farm car insurance rates.

Nationwide vs State Farm Average Annual Auto Insurance Rates by Driving Record

Both Nationwide and State Farm have about the same car insurance rates for drivers with a speeding ticket or accident on their record.

If you currently have a DUI on your driving record, State Farm is the best choice. Initially, you can save nearly $1,000 by going with State Farm if you have a DUI.

As for current customers, Nationwide and State Farm increase rates about the same for getting a speeding ticket or causing an accident.

However, State Farm is, again, more lenient on drivers who get a DUI. Expect your rates to increase by 65 percent while with Nationwide if you get caught driving under the influence.

Is Nationwide or State Farm Car Insurance Cheaper Based on Credit Score?

Just like gender and marital status, more states are outlawing car insurance rates based on credit score.

Your credit score is a strong reflection of your consistency with paying your bills, but the reason it is being outlawed is that rates quoted by insurance companies assume those with higher credit scores are better drivers.

Nationwide vs State Farm Average Annual Auto Insurance Rates by Credit History

State Farm is a better choice if you currently have good or fair credit. But if you currently have bad credit, steer clear of State Farm.

Nationwide is the better choice if you have bad credit, but not for drivers with good or fair credit. If you choose Nationwide and you currently have good or fair credit, expect to pay between $500 and $800 more on your car insurance.

Also worth noting, is if you choose State Farm insurance, you will pay more than double your car insurance rates if your credit score tanks while a customer with State Farm.

With Nationwide, your car insurance rates will increase by only 40 percent if you experience financial hardship and your credit score drops.

Where you live is the biggest factor in determining your car insurance rates because of state laws. Be sure to check your state car insurance guide before judging Nationwide and State Farm car insurance rates by credit score.

Does Nationwide or State Farm Have Better Car Insurance Discounts?

Each company has its selling point, and sometimes that comes down to who has the best discount that applies to your specific situation.

Nationwide vs State Farm Auto Insurance Discounts

When reviewing discounts offered by either company, Nationwide has 23 car insurance discounts, and State Farm has only 16 discounts.

State Farm’s best car insurance discounts range from 25 to 50 percent for having multiple vehicles on your policy, being a good student, having low mileage, driving a newer vehicle, and having airbags.

Read more: Car Insurance Discount for Multiple Vehicles

You can also save 50 percent by participating in State Farm’s usage-based car insurance program.

Nationwide’s best car insurance discounts range from 20 to 40 percent for having anti-theft and vehicle recovery systems in your car, having a family plan, being a safe driver, and using paperless billing and auto-pay.

You can also save 40 percent by participating in Nationwide’s usage-based car insurance program.

With the exception of the discount for using their driving app or driving device, Nationwide offers heftier discounts compared to State Farm.

What Types of Auto Insurance Coverages are Offered by Nationwide and State Farm?

Since both Nationwide and State Farm are two of the companies that hold the majority of the market share, they will offer many different types of coverages, and that includes the basic six list below:

• Liability auto insurance coverage – bodily injury and property damage
• Comprehensive auto insurance coverage
• Collision auto insurance coverage
• Uninsured/Underinsured auto insurance coverage
• Medical Payments (MedPay) auto insurance coverage – particularly important in states that require no-fault auto insurance
• Personal Injury Protection (PIP) auto insurance coverage

Read more:

• How does the car insurance claims process differ for uninsured/underinsured motorist coverage with State Farm?
• How does the car insurance claims process differ for uninsured/underinsured motorist coverage with Nationwide?

Other optional coverages may include rental reimbursement, roadside assistance, guaranteed auto protection (GAP), mechanical breakdown, and recreational vehicles such as ATVs or boats. Be sure to check out Nationwide pet insurance and Nationwide retirement when reviewing coverage options.

Does Nationwide or State Farm Have Better Car Insurance Mobile Apps?

Most of the top 10 car insurance companies have mobile apps to access policy information and/or make payments and a separate mobile app that tracks your driving habits (usage-based car insurance).

If you notice your rate has gone up when it’s time to renew your six-month policy, it could be because your credit score dropped. Use your Nationwide insurance login or State Farm login to temporarily change your coverage levels and deductibles to lower your rate while you start improving your credit score.

If you don’t notice a change in your credit score, and your rates still go up, it may be a good time to get quotes from other insurance providers.

Read our reviews of Nationwide’s SmartRide and State Farm’s Drive Safe & Save usage-based car insurance apps to learn more.

How do Nationwide and State Farm Car Insurance Compare in Financial Strength and Customer Satisfaction?

Reviewing ratings from three different agencies will provide you with a good picture of how a car insurance company works with its consumers, handles complaints, and their overall financial strength.

A.M. Best scores companies based on their ability to meet their ongoing insurance obligations such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 to 96.

And the National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on total number of customers against total number of complaints. In 2017, the national average complaint ratio was 1. The lower the ratio, the better.

So, should you buy Nationwide car insurance or buy State Farm car insurance? Check out the table below.

Nationwide vs State Farm Company Ratings

Both Nationwide and State Farm are highly competitive based on ratings from financial, consumer, and government agencies. State Farm car insurance quotes and Nationwide car insurance quotes are similar.

Claims Process Simplified: Nationwide vs. State Farm Car Insurance Comparison

Ease of Filing a Claim

Nationwide and State Farm provide various options for filing insurance claims, ensuring flexibility and convenience for their customers. The claims can be filed online through their respective websites, over the phone, or via mobile apps. This approach allows policyholders to choose the method that best suits their preferences and circumstances.

Average Claim Processing Time

The average claim processing time is an essential factor for customers when evaluating an insurance provider. Nationwide and State Farm aim to streamline their claims processing to ensure timely and efficient handling of claims. The actual processing time may vary based on the complexity of the claim and other relevant factors.

However, both companies strive to expedite the claims process to provide prompt assistance to their customers.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback on claim resolutions and payouts is crucial in evaluating the effectiveness and customer-centric approach of an insurance company. Both Nationwide and State Farm have received feedback from their customers regarding claim resolutions and payouts.

Analyzing this feedback helps prospective customers gain insights into the satisfaction levels and experiences of policyholders in the event of a claim.

Redefining Convenience: Nationwide vs. State Farm Car Insurance and Their Digital Advancements

Mobile App Features and Functionality

Nationwide and State Farm offer mobile apps to their customers, providing a range of features and functionalities. These mobile apps enable policyholders to access policy information, make payments, and manage their accounts on the go. The apps are designed to enhance the overall customer experience by providing a convenient platform for interacting with the insurance provider.

Online Account Management Capabilities

Efficient online account management is essential for modern insurance customers. Both Nationwide and State Farm offer robust online account management capabilities through their respective platforms. Customers can log in to their accounts, view policy details, make changes to their coverage, update personal information, and perform other account-related activities seamlessly.

Digital Tools and Resources

In addition to mobile apps and online account management, Nationwide and State Farm provide digital tools and resources to assist their customers. These tools may include calculators, educational materials, policy documents, and other resources aimed at enhancing customer knowledge and facilitating informed decisions related to insurance coverage and options.

The availability of such tools demonstrates the companies’ commitment to providing valuable resources to their clientele.

Nationwide vs. State Farm Car Insurance: What’s the bottom line?

State Farm consistently performs well on industry surveys by J.D. Power and has an A+ rating from the BBB and an A++ financial strength rating from AM Best. State Farm complaints are also substantially below the industry average.

Nationwide is well known for its auto insurance policies NextAdvisor named it one of the best car insurance companies because of its customizable policy, discount potential, college-aged driver pricing, and positive customer ratings.  However, Nationwide ranked last among large insurers in the J.D. Power 2021 U.S. Insurance Shopping Study℠ , which determines customer satisfaction with each stage of the shopping experience. The insurer is known for its affordable rates and high scores in J.D. Power customer satisfaction surveys

Please consult a licensed insurer or producer regarding any insurance product.

Now that you’ve finished this Nationwide vs. State Farm company review, use our FREE comparison tool to compare car insurance companies in your area.