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Nationwide Insurance Lowers Auto Rates in North Carolina

9 March 1999

Nationwide Insurance Lowers Auto Rates in North Carolina

    RALEIGH, N.C., March 8 -- Nationwide Insurance, North
Carolina's largest auto insurer, has lowered its auto insurance rates in the
state by an average of 2.7%, which will save its customers some $13 million
during the next 12 months.
    The rate reduction will average about $14 annually for customers with full
coverage. Individual rates will vary up or down according to drivers' ages,
residences, accident and violation records, types and amounts of coverages,
and other factors, such as discounts.
    The decrease, which has been approved by the North Carolina Insurance
Department, was effective March 1.
    "Nationwide is able to reduce rates because claim costs have been lower
than expected," said Dave Gettles, a Nationwide vice president in charge of
the company's North Carolina operations, headquartered in Raleigh.
    "Also, Nationwide has taken steps to settle claims more quickly and
efficiently, and we're seeing that cost improvement reflected in the rates the
company charges," Gettles said. "In addition, important highway safety issues
that Nationwide has supported for decades -- enforcement of drunken driving
laws, increased seat belt usage, and widespread air bag installation -- have
resulted in fewer and less costly crashes," he said. Nationwide has been a
strong backer of North Carolina's highly successful "Click It or Ticket" and
"Booze and Lose It" campaigns.
    Nationwide, based in Columbus, Ohio, is the country's fourth largest auto
insurer. The company insures some 973,000 vehicles in North Carolina.
Nationwide last lowered its auto insurance rates in North Carolina in 1997,
when there was an average 1% decrease.
    With the current price adjustment, rates were lowered 2.8% for
comprehensive coverage and 3% for collision coverage. Rates for bodily injury
liability coverage were reduced by 3.2% and property damage liability coverage
was lowered by 2.9%.
    Bodily injury liability pays for medical care, lost wages, lawsuits, and
related costs of auto accident victims injured by at-fault drivers.
Comprehensive coverage pays policyholders if their cars are stolen or for
damages to their cars caused by vandalism, storm damage, collision with an
animal, or for broken glass. Collision coverage pays for damages to the
policyholder's car caused by a crash. Property damage liability coverage pays
for damages caused to the property of others.