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After comparing State Farm vs. Nationwide on overall cost, coverage and customer experience, State Farm comes out on top with our Editor’s Choice award.
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Author: Daniel Robinson, Author: Daniel Robinson Author Daniel is a Guide Team writer and has published articles in the U.S., U.K. and has written for several automotive news sites and marketing firms in Australia, specializing in auto finance and car care topics. Daniel is a Guide Team authority on auto insurance, loans, warranty options, auto services and much more.
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Edited by: Rashawn Michener, Edited by: Rashawn Michener Managing Editor Rashawn Michener is a Guides team editor with more than 10 years of experience covering personal finance and insurance topics.
State Farm and Nationwide are two of the most well-known auto insurance companies in the market today. While both are reputable insurers, we ranked State Farm first overall in our 2022 study of the best car insurance companies.
At the Guide Team we thoroughly examined each auto insurance provider’s reputation, availability, coverage options, affordability, and customer satisfaction to see how good they are. In this article, we’ll analyze State Farm and Nationwide car insurance to help you decide what’s right for you.
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The Guide team is committed to providing reliable information to help you make the best decisions about insuring your vehicle. Because consumers trust us to provide objective and accurate information, we have created a comprehensive rating system to create our ranking of the best car insurance companies. We collected data on dozens of auto insurance providers to grade companies based on a wide range of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with the insurers with the highest scores topping the list.
Which auto insurance company is your best choice – State Farm or Nationwide? Through our research-backed, industry-wide insurance review process, we rated State Farm significantly higher than Nationwide in terms of reputation, coverage and customer experience. However, both companies score well in terms of availability and cost. Overall, we gave State Farm a rating of 9.3 and Nationwide a rating of 8.7 out of 10.0.
The table below shows how State Farm and Nationwide scored in our key rating categories for car insurance.
Both State Farm and Nationwide are reputable auto insurance companies that have been in business for decades and have positive ratings from many renowned organizations. Each company has an A+ rating from the Better Business Bureau (BBB), which considers factors such as responsiveness to consumer complaints, transparency, and truthful advertising.
State Farm Auto Insurance Review 2023
The table below provides reputation-based awards and industry scores for both State Farm and Nationwide. As you can see, State Farm and Nationwide have given AM the best financial strength ratings of A++ and A+ respectively. These ratings are given to insurers that demonstrate superior ability to meet their ongoing insurance obligations. We’ll discuss other scores in our customer experience section below.
According to the National Association of Insurance Commissioners (NAIC), State Farm is the largest auto insurance provider in the US and accounts for 15.9% of all auto insurance premiums sold. State Farm celebrates 100 years of business in 2022. While the provider offers auto insurance coverage in all 50 states, it no longer sells new policies in Massachusetts or Rhode Island.
Previously known as Farm Bureau Mutual Automobile Insurance, Nationwide sold its first insurance policy in 1926. With nearly 100 years of experience in the insurance industry, Nationwide has expanded its offerings to 47 states and offers life and home insurance along with its auto policies. According to NAIC, Nationwide wrote more than $5.5 billion in premiums in 2021 and owns 2.1% of the total market share.
Both State Farm and Nationwide offer standard types of car insurance coverage, including bodily injury and property damage liability coverage, collision coverage, comprehensive coverage, and personal injury protection coverage.
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One difference between these two auto insurers is in their selection of add-on coverage. State Farm offers rideshare insurance to people who work for companies like Uber or Lyft, as well as travel expense coverage for meals and other costs if your vehicle breaks down away from home.
Although Nationwide doesn’t offer any of these specific coverages, it does offer a vanishing deductible, which can reduce your comprehensive or collision deductible by up to $100 for every year of safe driving. Additionally, the insurer offers gap insurance, which pays the difference between the price of your car and the amount owed to you in the event of a total loss after an accident.
Both State Farm and Nationwide offer usage-based insurance programs that feature savings for safe driving habits tracked through a mobile app. State Farm’s Drive Safe & Save™ program offers customers up to 30% off when they sign up as well as savings for practicing safe driving habits. Your driving is evaluated based on acceleration, braking, cornering, speed and phone use while driving.
The Drive Safe & Save program is not available to drivers in California, Massachusetts or Rhode Island, and it may not be available to some drivers in North Carolina.
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The nationwide usage-based program is called SmartRide®. You get a 10% discount when you sign up and can save up to 40% on your insurance premiums based on your safe driving habits. SmartRide takes into account miles driven, hard braking, acceleration and night-time driving when calculating savings.
For the average 35-year-old driver with a good credit score and clean driving record, Nationwide offers the cheapest car insurance rates at $1,281 per year. Compared to competitors, State Farm’s annual average premium is also very affordable at $1,481 per year.
However, it’s important to note that car insurance rates vary widely depending on individual factors like age and driving history. State Farm generally charges lower rates on average for different types of driving profiles, such as young drivers and those with a recent accident or driving under the influence (DUI) violation on their record. On the other hand, if you’ve recently received a speeding ticket, you may want to consider Nationwide, as the company typically offers some of the best rates for this driver profile.
Both State Farm and Nationwide fall below the national average rate of $1,730 for annual full-coverage car insurance premiums. Here’s how both providers compare to other national insurers on average cost.
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See below for a breakdown of full-coverage insurance costs for different types of policyholders for State Farm and Nationwide.
State Farm and Nationwide both offer an impressive lineup of car insurance discounts. Although there are many savings opportunities available with each auto insurance provider, there are some differences to consider.
State Farm is especially known for its discount opportunities for students and young drivers. It offers discounts for students in good school and away students, as well as savings for drivers under 25 through its Steer Clear® training program. Nationwide offers a certain number of discounts that State Farm does not, such as going paperless or installing automated payment systems.
State Farm and Nationwide offer additional discounts when you bundle your car insurance with other types of insurance products.
State Farm Auto Insurance Review
Nationwide offers bundling discounts to those who combine their auto insurance with life, renters, boat or homeowners insurance policies.
State Farm consistently ranks high in auto insurance studies. J.D. Power 2022 US In the Auto Claims Satisfaction Study, the provider received a score of 882 out of 1,000, which is above the industry average for overall customer satisfaction. J.D. In the Power Insurance Shopping study, State Farm ranked first among large insurers with a score of 885 out of 1,000.
Nationwide scored below the industry average of 873 in the auto claims satisfaction study, ranking 14th out of 22 auto insurance providers with a score of 868. Nationwide ranked fifth in the large insurers portion of the insurance shopping study with a score of 858.
As shown in the previous table, State Farm and Nationwide both have A+ ratings through the BBB. However, customer ratings for both companies are quite low. It’s good to note that customers more often report negative experiences than positive ones, and low BBB ratings from customers are standard in the insurance industry.
State Farm Insurance Review: Great Quotes & Coverage
When it comes to comparing State Farm vs. Nationwide, both providers have solid reputations, a wide variety of coverage options, and similar bundling options for their auto insurance policies. However, while both are reputable choices for coverage, we rate State Farm auto insurance as the better choice overall and in all of our rating categories.
It’s always good to explore your options by comparing auto insurance quotes from multiple providers. Our team recommends you check out both Geico and USAA in your search for the right auto insurance policy.
Affordability is an important factor when choosing the right car insurance