Nationwide vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for insurance, State Farm offers slightly cheaper premiums than Nationwide
• Nationwide has more affordable prices for policyholders who don't have any speeding tickets, DUIs, or at-fault accidents on their record
• State Farm tends to be a much less expensive option for policyholders who may not have much of a commute

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Nationwide vs. State Farm: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering hefty discounts, but exactly how much money can you save by switching?

You might have narrowed your search down to Nationwide or State Farm, but which company will save you the most?

Looking at nationwide averages, State Farm is about $12 per month more affordable than Nationwide.

However, that doesn't necessarily mean State Farm will be the less expensive option for every single driver. Car insurance companies vary their premiums depending on things like how clean your driving record is, where you live, how old you are, how good your credit score is, and a ton of other factors, so rates will change quite a bit from person to person.

So, if you want to find out which of Nationwide or State Farm is really the best for you, keep reading to see average prices for each company broken down by a bunch of different rate factors.

Nationwide or State Farm: Average Car Insurance Rates by State

Nationwide and State Farm compete against each other in 34 states, with Nationwide offering cheaper rates to the average driver in all of them. If you live in, undefined is the more affordable of the two carriers when looking at the overall average prices, but State Farm is the cheaper option in most of the others.

That being said, there are plenty of other factors that go into your insurance bill than just your home state. Read on to learn more.

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Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for auto insurance than any other group of drivers. It's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

Even so, that doesn't mean teen drivers can't still save money on their car insurance. For example, 18-year-old drivers pay an average of more than $25 less a month by choosing State Farm over Nationwide.

But with both companies, you'll see your premiums drop significantly by the time you turn 25. For example, average rates for Nationwide policyholders lower over 60% and State Farm's premiums reduce nearly 60% over that time.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices you'll ever find.

When looking at Nationwide and State Farm specifically, which carrier is best for retired drivers? State Farm gets the edge, with premiums for drivers 65 and older $14 less expensive than the national average for Nationwide.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance prices tend to be cheaper for married drivers than they are for single drivers. That's usually because married couples tend to own and insure multiple cars, which can often earn you a discount.

If you're in the market for auto insurance, State Farm tends to have the most affordable average rates regardless of marital status, with prices almost 10% less expensive for those who are single and around 4% cheaper for married policyholders.

Nationwide vs. State Farm: Average Rates by Gender

Men tend to pay more for insurance than women. This is because men are statistically more likely than women to get pulled over for speeding or get into an accident, which leads to increased risk for insurers and, therefore, higher premiums.

On average, men see prices about 7% per month higher with Nationwide, and around 7% more with State Farm.

Looking at the data for each company specifically, State Farm comes out on top for both men and women. On average, women save about $12 a month and men save about $12 with State Farm compared to the average Nationwide policyholder.

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Nationwide or State Farm: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

Car insurance can be a complicated subject for most people. There are a range of different coverages that account for multiple different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause a collision.

The two most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's property damage and injuries if you cause an accident) and full coverage (which generally refers to having comprehensive and collision coverages in addition to liability).

If you're looking for state minimum liability insurance, State Farm typically offers more affordable rates of $99 compared to Nationwide's $112. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies around $15 per month cheaper than Nationwide, on average.

Is Nationwide or State Farm Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their auto insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

It's no secret secret that tickets and at-fault collisions lead to higher prices, but which carrier -- Nationwide or State Farm -- has the lowest rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Nationwide policyholders can expect their premiums to go up an average of $24 a month if they get a ticket, while State Farm usually raises rates about $21 per month, on average.

That being said, Nationwide is normally the more affordable option for drivers both with a speeding ticket and with a clean record, offering premiums that are $9 and $6 less expensive, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

Nationwide drivers who get in a collision can expect to see their prices rise by just under 30%, while those who have insurance through State Farm will see around a 20% increase.

Overall, the more affordable premiums come from State Farm, with monthly rates averaging $163 compared to Nationwide's $178.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your insurance bill. For example, Nationwide increases average prices by over $100 a month -- that's over a 45% increase.

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How does Credit Score Impact Nationwide and State Farm Rates?

Did you know that many car insurance carriers take into account your credit score when calculating premiums? This isn't always the case (for example, Massachusetts and Michigan are two states that ban the practice entirely), but it might come into play for lots of policyholders.

Insurance companies argue that those with poor credit scores are less likely to pay their bills on time each month, which increases the risk involved on their end, while the opposite is true for those with good credit.

Looking at Nationwide and State Farm specifically, which carrier has the cheapest rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is Nationwide or State Farm Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in how much car insurance carriers will charge for coverage. That's because the more miles you put on your vehicle each year, the more likely you are to get into an accident and cause an insurance claim.

For both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure, State Farm tends to be the cheaper option. State Farm average prices for drivers with 6,000 annual miles come in just under $20 less expensive than Nationwide. Those who drive 12,000 miles yearly can expect to pay $7 less with State Farm over Nationwide.

Nationwide vs. State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can have a pretty big impact on your monthly auto insurance payment. Generally, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers because there are a lot fewer cars on the roads in those areas.

When comparing these two companies side-by-side, State Farm tends to offer the cheapest option for drivers in rural and urban areas, while Nationwide wins in suburban areas.

In urban areas, State Farm's average prices are about $14 less than Nationwide. Drivers in suburban ZIP codes pay around $2 less with Nationwide compared to State Farm. If you live in a rural area, you can expect to save about $24 with State Farm compared to Nationwide.

Nationwide vs. State Farm Discounts

You want to save as much money as possible, right? The best way to do that is by taking advantage of as many car insurance discounts as you can.

But with what seems like a million different discounts out there, it can be difficult to nail down the carrier that has the most discounts for your unique driver profile and to find all the discounts you're eligible for.

Below, we've broken down all of the different discounts offered by both Nationwide and State Farm so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Overall, State Farm has a slight advantage when it comes to total number of discounts. Nationwide offers a grand total of 22 discounts, while State Farm has 23.

Both carriers offer lots of the same discounts -- like anti-theft discounts, distant student discounts, discounts for being a good driver, and multi-policy discounts -- but State Farm also offers ABS discounts, annual mileage discounts, drive safe & save discounts, and more that Nationwide does not.

On the flip side, Nationwide has a couple unique discounts of its own -- advance quote discounts, agency transfer discounts, EFT discounts, and more.

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Final Thoughts: Is Nationwide or State Farm Best for You?

So, you've seen how different factors can affect your auto insurance premiums. We've broken down the different discounts each company offers, too. But, at the end of the day, is Nationwide or State Farm the right fit for you?

State Farm might be best for you if....

• You're single and purchasing insurance by yourself.
• You're looking for the carrier with the most discounts.
• You're buying auto insurance for a teen and looking for a wallet-friendly option.

Nationwide might be best for you if...

• You haven't received any speeding tickets or been in a collision in the last few years.
• You've received a ticket for speeding recently and don't want to see your rates increase.
• You live in an suburban area.

We hope this guide helps you get a better idea of the difference between Nationwide and State Farm and that it aids in making a more informed decision about your car insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from multiple companies, not just Nationwide and State Farm. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best auto insurance carriers in your area, all for free.

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Nationwide vs. State Farm FAQs

Is Nationwide or State Farm cheaper?

Looking just at the national average prices, State Farm is the more affordable of the two companies, offering average rates of $158 per month compared to $170 for Nationwide. But State Farm won't necessarily be the most affordable company for everyone, since there are several different variables that are considered when it comes to your car insurance cost.

Who is better, Nationwide or State Farm?

Unfortunately, the only answer we can give you is "it depends.". Neither carrier is necessarily "better" for each driver -- it all depends on the makeup of your unique insurance profile. For example, State Farm offers cheaper rates for policyholders with an at-fault collision on their record, while Nationwide is less expensive for drivers who have less-than-stellar credit scores.

Why do Nationwide and State Farm offer me different rates?

Car insurance carriers take a look at quite a few different factors when determining the prices they charge drivers. Variables such as your driving record, age, gender, where you live, and sometimes even things like your credit score can all be taken into consideration. Both Nationwide and State Farm calculate premiums using different formulas, so each one will most likely offer different rates. The only real way to see which company is the lowest for you is by comparing personalized quotes from lots of different companies.

How do I know if Nationwide or State Farm is right for me?

The only way to find the auto insurance carrier that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best insurance companies in your area. With those, you can guarantee you're getting the best rate. And who knows, the best company for you might not be Nationwide or State Farm at all!

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Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.