Nationwide vs. USAA Car Insurance: Expert Recommended (2024)

Delve into the data, and a clear frontrunner emerges in the competitive realm of auto insurance. USAA takes the lead with unparalleled rates, showcasing a strategic advantage for drivers across various profiles. For the clean-record enthusiasts, USAA offers rates as low as $59, significantly outshining Nationwide’s $115. Even with a single ticket on your record, USAA maintains its edge at $67 compared to Nationwide’s $137.

Nationwide

Pros:

• Affordability: Nationwide generally offers lower rates, making it a cost-effective option for budget-conscious individuals.
• Discount Variety: Nationwide provides a wide variety of discounts, ranging from safe driver discounts to paperless billing and autopay options.
• Coverage Options: Both Nationwide and USAA offer a comprehensive range of coverage options, including optional coverages like rental reimbursement and roadside assistance.
• Financial Strength: Nationwide has a strong financial standing, receiving a “superior” rating from A.M. Best.

Cons:

• Customer Satisfaction: Nationwide doesn’t score as high in customer satisfaction as USAA, suggesting a potential drawback in the claims process and overall service.
• Eligibility Restrictions: Unlike USAA, Nationwide is available to the general public, but this may result in a more diverse customer base, affecting the company’s ability to tailor services to specific groups.

USAA

Pros:

• Affordability: USAA consistently offers cheaper auto insurance rates, particularly advantageous for military members and their families.
• Customer Satisfaction: USAA excels in customer satisfaction, providing a seamless claims process and garnering positive feedback from policyholders.
• Financial Strength: USAA boasts the highest financial strength rating from A.M. Best, indicating a robust ability to meet financial obligations.
• Military Support: USAA actively supports military families and communities through contributions to national and local nonprofits.

Cons:

• Eligibility Criteria: USAA’s car insurance is exclusively available to active, inactive, and retired military members and their immediate family, limiting accessibility for the general public.
• Fewer Discounts: While USAA offers competitive rates, it provides fewer discounts compared to Nationwide, potentially limiting opportunities for additional savings.
• Limited Geographic Coverage: USAA may have restrictions based on location and may not be available in all states, potentially limiting options for some individuals.

USAA Car Insurance: The Top Choice

In the comparison between Nationwide and USAA car insurance, USAA emerges as the superior option. With consistently lower rates, excellent customer satisfaction, and exclusive benefits for military members, USAA stands out as the best overall choice for reliable and affordable car insurance.

USAA emerges as the preferred option for car insurance due to the following factors:

Affordability: USAA consistently offers lower rates compared to Nationwide, ensuring cost-effective coverage for a diverse range of drivers.

Customer Satisfaction: USAA excels in customer satisfaction, providing a seamless claims process and garnering positive feedback from policyholders.

Military Support: Exclusive eligibility for military members and their families sets USAA apart, offering not just competitive rates but also dedicated support for the military community. (For more information, read our “Car Insurance Guide for Military Members“).

While Nationwide has its merits, the consistent advantages offered by USAA make it the clear winner for individuals seeking reliable and cost-effective car insurance coverage.

Is Nationwide or USAA Car Insurance Cheaper Based on age?

It’s completely fair for car insurance companies to base rates on your age. After all, the more experience driving we have, the better drivers we become. Some states will also base your car insurance rates on gender and/or marital status, though several states have outlawed this practice.

See below for USAA and Nationwide car insurance quotes based on age.

Nationwide vs. USAA Average Annual Auto Insurance Rates by Age, Gender, and Marital Status

USAA’s auto insurance rates are 31% cheaper than Nationwide’s auto insurance rates for drivers 25 and older.

Coming in at 21% cheaper than Nationwide, USAA is the better choice if you have a teen driver on your policy.

Is Nationwide or USAA Car Insurance Cheaper Based on Driving Record?

Speeding tickets, accidents, DUIs, and other traffic violations will increase your Nationwide and USAA car insurance rates.

Nationwide vs. USAA Average Annual Auto Insurance Rates by Driving Record

No matter what type of driving record you have, USAA will have cheaper car insurance rates than Nationwide.

However, USAA is more forgiving with their customers if they cause an accident while under their policy. If you cause an accident while with USAA, expect your rates to increase by 30%.

Read more: How does USAA handle claims involving hit-and-run accidents?

Getting a speeding ticket will increase your USAA auto insurance rates by 13%, and if you get a DUI, your rates will increase by more than 80%.

Nationwide and USAA increase their rates by the same amount if you get a speeding ticket: 13%. But, if cause an accident while with Nationwide, your rates will increase by 24%, which is less than USAA will increase your rates (30%).

Both USAA and Nationwide take DUIs very seriously, but Nationwide will increase your rates by 65% compared to USAA’s 81%.

Is Nationwide or USAA Car Insurance Cheaper Based on Credit Score?

Just like gender and marital status, more states are outlawing car insurance rates based on credit scores.

Your credit score is a strong reflection of your consistency with paying your bills, but the reason it is being outlawed is that rates quoted by insurance companies assume those with higher credit scores are better drivers.

Nationwide vs. USAA Average Annual Auto Insurance Rates by Credit History

USAA car insurance quotes are cheaper than Nationwide car insurance rates if you have bad credit.

Expect to pay more than twice as much as drivers with good credit with USAA, but only 40% more with Nationwide.

A drop in credit score could increase your car insurance rates, so be sure to keep an eye on your rate when it’s time to renew your six-month policy.

Use your Nationwide insurance login or USAA login to make temporary adjustments to your coverage levels and deductibles while you work to improve your credit score. Otherwise, it may be a good opportunity to see what other car insurance companies have to offer.

Where you live is the biggest factor in determining your car insurance rates because of state laws. Be sure to check your state car insurance guide before judging Nationwide and USAA car insurance rates by credit score.

Does Nationwide or USAA Have Better Car Insurance Discounts?

Each company has its selling point, and sometimes that comes down to who has the best discount that applies to your specific situation. Is it easier to find affordable Nationwide car insurance or affordable USAA car insurance? Read on.

Nationwide vs. USAA Car Insurance Discounts

When comparing all discounts that either company offers, Nationwide has a total of 17 auto insurance discounts while USAA has only 13 discounts.

USAA doesn’t have as many or as high discounts, but their absolute best car insurance discounts are 75% for young drivers and 90% for garaging your vehicle while deployed.

Nationwide can’t compete with 75 and 90%, but you can still save between 25 and 40% by being a safe driver, having an anti-theft or vehicle recovery system in your car, getting paperless bills, using autopay, or using their driving app or driving device.

What Types of Auto Insurance Coverages are Offered by Nationwide and USAA?

Since both Nationwide and USAA are two of the companies that hold the majority of the market share, they will offer many different types of coverages, and that includes the basic six list below:

• Liability auto insurance coverage – bodily injury and property damage
• Comprehensive auto insurance coverage
• Collision auto insurance coverage
• Uninsured/Underinsured auto insurance coverage
• Medical Payments (MedPay) auto insurance coverage – particularly important in states that require no-fault auto insurance
• Personal Injury Protection (PIP) auto insurance coverage

Read more:

• How does USAA handle claims involving uninsured/underinsured motorists?
• How does the car insurance claims process differ for uninsured/underinsured motorist coverage with Nationwide?

Other optional coverages may include rental reimbursement, roadside assistance, guaranteed auto protection (GAP), mechanical breakdown, and recreational vehicles such as ATVs or boats. Also, be sure to check out Nationwide pet insurance and Nationwide retirement.

Does Nationwide or USAA Have Better Car Insurance Mobile Apps?

Most of the top 10 car insurance companies have mobile apps to access policy information and/or make payments and a separate mobile app that tracks your driving habits (usage-based car insurance).

Read about Nationwide’s SmartRide and compare it to USAA’s SafePilot usage-based car insurance app highlighted in our USAA company review.

How Do Nationwide and USAA Car Insurance Compare in Financial Strength and Customer Satisfaction?

Reviewing financial strength ratings from three different agencies will provide you with a good picture of how a car insurance company works with its consumers, handles complaints, and its overall financial strength.

A.M. Best scores companies based on their ability to meet their ongoing insurance obligations such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 to 96.

The National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on a total number of customers against the total number of complaints. In 2017, the national average complaint ratio was 1. The lower the ratio, the better.

Nationwide vs. USAA Company Ratings

Nationwide and USAA both have excellent marks from external financial rating agencies. In fact, USAA holds the highest score from A.M. Best.

Still not sure if you should buy Nationwide car insurance or buy USAA car insurance?

USAA has one of the best scores for customer satisfaction through the claims process, but Nationwide customer service is still good because their score floats around the same scores for other large car insurance companies.

Both USAA and Nationwide have reasonable complaint ratios.

Nationwide vs. USAA Car Insurance: A Deep Dive Into Claims Process and Benefits

Ease of Filing a Claim

When considering the claims process for car insurance, ease of filing a claim is a crucial aspect. Both Nationwide and USAA offer multiple channels for filing a claim, including online, over the phone, and through mobile apps. Customers can conveniently choose the method that suits them best for a streamlined claims process.

Average Claim Processing Time

The average claim processing time is a vital factor in evaluating an insurance company’s efficiency in handling claims. Unfortunately, specific data regarding the exact claim processing times for Nationwide and USAA is not provided in the content.

However, assessing the average claim processing time is essential for customers to anticipate how long it might take for their claims to be settled.

Customer Feedback on Claim Resolutions and Payouts

Understanding customer feedback on claim resolutions and payouts is essential to gauge the satisfaction levels of policyholders with the claims process. While the content mentions the overall customer satisfaction for both Nationwide and USAA, detailed feedback on claim resolutions and payouts is not provided.

Gathering and analyzing customer feedback in these aspects can offer valuable insights into the claims experience provided by these insurance companies.

Mobile App Features and Functionality

Both Nationwide and USAA offer mobile apps to their customers, allowing easy access to policy information, payments, and even tracking driving habits through usage-based car insurance features. A comprehensive comparison of the features and functionality of their respective mobile apps can assist customers in making an informed decision based on their preferences and needs.

Online Account Management Capabilities

Online account management capabilities are an integral part of modern insurance services. Evaluating the features and capabilities offered for managing policies and accounts online by both Nationwide and USAA can provide potential customers with valuable insights into the ease and convenience of managing their insurance accounts using digital platforms.

Digital Tools and Resources

Digital tools and resources provided by insurance companies can enhance the overall customer experience. However, specific information regarding the digital tools and resources offered by Nationwide and USAA is not outlined in the content.

A thorough comparison of the available digital tools and resources can help customers determine which company offers the best technological support to meet their insurance needs.

Nationwide vs. USAA Car Insurance: What’s the bottom line?

Consider many factors when choosing between Nationwide and USAA for auto insurance. Nationwide often has less expensive rates, but the company doesn’t earn high marks for customer satisfaction. USAA receives widespread praise from customers, but eligibility requirements might prevent you from signing a policy with them. 

USAA and Nationwide are excellent options for a quality car insurance policy. Your situation and requirements are unique. You must conduct research when deciding on a new insurance provider. Speak with company representatives, who can help you select the coverage levels that best meet your needs. 

If you have a loss from an accident, theft, or weather-related damage, your insurer must pay any covered claim you make. An insurance company’s ability to meet its financial obligations is critical. 

USAA and Nationwide both have “superior” financial strength ratings from A.M. Best. The rating indicates that these insurers can pay their claims obligations. 

Now that you’ve finished this Nationwide vs. USAA car insurance review, you can always use our FREE comparison tool to compare car insurance of companies in your area.