Nationwide auto insurance review and ratings 2024

Our take: Nationwide stands out for offering cheaper premiums than the four largest car insurers: Allstate, Geico, Progressive, and State Farm. We also found that Nationwide garners fewer consumer complaints than other large carriers and that insurance consumers give it above-average marks for its online service. It also outranks the largest carriers when it comes to customer claim satisfaction, according to research firm J.D. Power's annual study.

Kevin Lynch, who owned a Nationwide insurance agency in Texas before joining the American College of Financial Services, says service has always been one of Nationwide’s real strengths.

The insurer hires agents “willing to work hard to realize their goals,” he says.

However, Nationwide received below-average scores in J.D. Power’s separate 2024 U.S. Insurance Shopping Study, which looks at the insurance shopping experience and why consumers pick the policies they buy. In a separate J.D. Power study, which examines overall claims satisfaction, the independent research company rated Nationwide below average.

Nationwide, the 10th-largest car insurance company by market share, offers standard minimum coverage and full coverage policies as well as common endorsements for additional protection, such as accident forgiveness, gap insurance, and towing and labor coverage. It also offers a usage-based insurance (UBI) program, which it says could save you up to 40%, and a pay-per-mile insurance option, two forms of coverage not available from all carriers.

Despite the lure of big potential savings for adopting usage-based insurance technology, many drivers remain reluctant, says Lynch.

“[Insurers] entice you with promises of discounts on your premium,” he says. “However, if your driving habits are such that they would be considered in a negative light, there’s nothing to stop carriers from increasing your rates using information that you’ve provided against yourself.”

How we compared Nationwide

To compare Nationwide to other insurers, we looked at several industry benchmarks, including J.D. Power’s 2024 U.S. Insurance Shopping Study, 2024 U.S. Insurance Digital Experience Study, and 2023 U.S. Auto Claims Satisfaction Study. We also looked at AM Best ratings for financial stability and collected average rates to see how Nationwide’s prices compare to those of its biggest competitors.

Nationwide versus other top auto insurers

Who are the biggest auto insurers?

State Farm, Progressive, Geico, and Allstate are the four biggest auto insurance companies by market share. Nationwide currently ranks as the 10th largest car insurance company, with 1.71% of the total market share. In 2023, Nationwide had roughly $5.5 billion in premiums written. To compare, State Farm had nearly $58 billion in premiums written.

How do Nationwide’s rates compare to other top insurers?

Nationwide has the cheapest full coverage car insurance premiums compared to the four largest carriers. Geico is the second cheapest for a full-coverage policy. For liability-only coverage, Geico is the cheapest, followed by Nationwide.

The rates we analyzed were collected from auto insurance comparison site Carlnsurance.com. These rates are for single, 40-year-old drivers of a 2023 Honda Accord LX with good insurance scores and no violations on their record. We gathered quotes for state minimum liability insurance, standard liability with coverage limits of 50/100/50, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible. With 100/300/100 coverage, the customer is covered up to $100,000 for bodily injury per person, $300,000 for bodily injury per incident and $100,000 for property damage per incident.

How does Nationwide do in claims satisfaction?

As important as price is, many consumers put a premium on service. In J.D. Power’s 2024 U.S. Auto Claims Satisfaction Study, Nationwide was ranked 4th out of 24 insurance companies. It received a score of 728 out of 1,000, higher than any of the four biggest carriers. Among the big four insurers, State Farm did best with a score of 710.

Nationwide also didn’t score particularly well in the CRASH Network’s 2024 Insurer Report Card, which asks auto body shop managers across the U.S. to grade insurance companies' claim handling and customer service. Nationwide received a grade of C. However, it’s important to note that none of its major competitors received a better score from the CRASH Network. Progressive also earned a C, while State Farm, Allstate, and Geico earned a C-.

What is Nationwide’s financial stability?

Nationwide is financially stable. The company has an A (excellent) rating for financial strength from credit rating agency AM Best. As a point of comparison, many of the top car insurance companies have AM Best ratings of A+ or higher. State Farm and Geico both have the highest AM Best rating of A++.

Does Nationwide receive a lot of complaints?

Nationwide receives fewer customer complaints than the largest carriers, according to the National Association of Insurance Commissioners (NAIC) Complaint Index,

The NAIC industry benchmark is 1.0. Companies that receive a score above 1.0 have more complaints than expected, whereas companies with a score below 1.0 have fewer complaints than expected.

Nationwide’s complaint index for private passenger car insurance is 0.68, which means it receives fewer complaints than expected for its size. For comparison, Geico’s complaint index score is 0.70, the next best among the top four insurers.

What is Nationwide’s digital shopping experience like?

In J.D. Power’s 2024 U.S. Insurance Digital Experience Study, Nationwide was ranked third among 16 insurance companies in the service subcategory, scoring 716 out of 1,000. Progressive is the only one of the top four carriers that did better than Nationwide in this subcategory; it was ranked No. 1.

However, in the shopping subcategory, Nationwide scored 493 out of 1,000, placing it 20 out of 23 companies. The top four carriers all were ranked higher.

Nationwide has a mobile app for viewing ID cards, making payments, filing claims, and more, both of which rank reasonably well The Android app has a rating of 4.5 out of 5 stars, and the iOS app has a rating of 4.7 out of 5 stars.

How is Nationwide shopping in general?

In J.D. Power’s 2024 U.S. Insurance Shopping Study, Nationwide was ranked 13 out of 17 companies. It scored 664 out of 1,000, just below the study average of 676.

Is Nationwide good at offering usage-based insurance?

Usage-based insurance (UBI) uses an in-car device or an app on your phone to monitor your driving habits in exchange for potentially lower rates. Among insurers that offer UBI, Nationwide was ranked No. 1 in J.D. Power’s 2024 U.S. Auto Insurance Study, with a score of 842 out of 1,000. Only Geico comes close among the top four insurers, finishing just behind Nationwide with a score of 837.

“Usage-based insurance programs rely on data collected from the vehicle or a mobile app to assess driving behavior,” says Julie Kress, managing director at Plymouth Rock Assurance. “The device or app tracks various driving metrics such as miles driven, time of day, speed, braking habits, and phone usage. With this information, the insurance company can offer a rate or discount that’s unique to each policyholder.”

Nationwide’s SmartRide program uses a phone-based app to analyze how you drive—including how often you’re behind the wheel, what time of day you drive, how fast you drive, and whether you are prone to speeding or making sudden starts and stops. Customers can earn a 10% discount for signing up, and Nationwide says drivers can see discounts of up to 40%.

The company also offers a pay-per-mile insurance option called SmartMiles. Policyholders pay a set base premium plus a per-mile charge each month. The company records mileage using an in-car telemetry device and transmits that data to the insurer.

Key offerings by Nationwide

Nationwide has standard minimum coverage and full coverage policies, as well as several optional endorsements. Here are some of the key offerings from Nationwide:

• Collision insurance
• Comprehensive insurance
• Roadside assistance
• Gap insurance
• Accident forgiveness
• Vanishing deductible
• Total loss deductible waiver

In addition to auto insurance, Nationwide sells home insurance, renters insurance, boat insurance, RV insurance, flood insurance, life insurance, business insurance, and investment products.

Making the choice: Why go with Nationwide?

Based on our analysis of recent cost data, Nationwide could be a good choice for many people. It has the cheapest car insurance premiums overall compared to the four largest insurance carriers by market share. Nationwide has fewer complaints than other insurers and rates its online service well.

The company offers several common car insurance discounts, including savings for safe drivers, policy bundling, good students, and taking a defensive driving course. Another potential benefit of Nationwide is its usage-based and pay-per-mile policies, SmartRide and SmartMiles.

Nationwide car insurance - Our expert verdict

Nationwide can be an excellent car insurance company if you’re looking for a financially stable company that offers rates cheaper than the biggest auto insurers.

Methodology

Rates were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and $500 comprehensive and collision deductibles.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.

AM Best’s Financial Strength Ratings (FSRs) are an independent assessment of an insurer’s financial strength and ability to meet its policy and contract obligations. Best’s FSRs are based on a graded scale from A++ (Superior) to D (Poor). For more information, visit AM Best’s ratings guide. For the latest AM Best credit ratings, visit www.ambest.com The National Association of Insurance Commissioners (NAIC) Complaint Index analyzes consumer complaints submitted to state insurance departments. The Complaint Index is used to compare a company’s performance to others in the market. The National Complaint Index is benchmarked at 1.0. For example, a company with a score of 2 has a complaint index that is twice as high as expected in the market. A company’s complaint index score is determined by dividing the number of complaints by its share of premiums in the U.S. market. J.D. Power is a marketing, consumer intelligence, and data and analytics company that publishes a variety of studies on the insurance industry and carriers. The rankings included in this story originate from JD Power’s 2024 U.S. Insurance Digital Experience Study, 2024 U.S. Insurance Shopping Study and 2023 U.S. Auto Insurance Study.

CRASH Network’s Insurer Report Card is an annual survey of more than 1,100 collision repair professionals nationwide. Participants awarded each company a grade from A+ to F based on this question: “How well does this insurer's claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” Those polled also indicated whether or not they participate in that insurer's direct repair program.