Nationwide vs State Farm

Verdict

State Farm and Nationwide are both policyholder-owned mutuals with farm roots, and both score well with customers. Their size and sales models differ. State Farm, the largest U.S. auto insurer, wrote $69.16 billion of private passenger auto premium in 2025 (18.61%) through more than 19,200 captive agent offices. Nationwide, 14th, wrote $4.07 billion (1.09%). It sells through independent agents, online and by phone, and no longer uses an exclusive agent force.

State Farm holds the higher AM Best rating, A+ (Superior), though it was downgraded from A++ in November 2025. Nationwide is rated A (Excellent), affirmed the same month, and AM Best described its operating performance as marginal. On service, both are strong. In the 2025 J.D. Power claims study Nationwide scored 729 (4th of 20) and State Farm 716 (tied 8th). In the 2026 U.S. Auto Insurance Study State Farm was above average in nine of 11 regions and first in the Northwest. Nationwide ranked second in the North Central, Southeast and Texas regions, and its usage-based program ranked highest for the third straight year.

Availability will settle it for some drivers. State Farm doesn't write new auto business in Massachusetts or Rhode Island. Nationwide's state pages don't cover Alaska, Hawaii, Louisiana, Massachusetts or D.C. Where both sell, get quotes from both.

Choose Nationwide if

• You want an independent agent who can compare Nationwide with other insurers.
• You drive little and want pay-per-mile coverage through SmartMiles.
• You want a safe-driving program with a bigger ceiling: SmartRide pays 10% to enroll and up to 40% at renewal.
• You live in Rhode Island, where State Farm doesn't take new auto customers.
• You want a Vanishing Deductible or the On Your Side repair network's lifetime guarantee.

Choose State Farm if

• You want a captive agent who handles your auto, home and life policies.
• You live in Alaska, Hawaii, Louisiana or D.C., where Nationwide's auto pages don't list coverage.
• You live in the Mid-Atlantic or New York, where Nationwide scored below the 2026 regional average.
• You want the 2026 auto dividend and the A+ rating.
• You have a driver under 25 who could earn the Steer Clear discount.

Key differences

SmartRide's final discount could be zero, and Drive Safe & Save is recalculated each renewal and can fall (see telematics programs from the major insurers compared). Nationwide policies must be canceled through an agent. Compare the same coverage on the car insurance quote comparison worksheet.