Nationwide revises new car classification system

Rough Notes, Dec 1996

Nationwide Insurance is expanding the number of price categories it uses for physical damage coverages on new cars. Starting with the 1997 models, the insurer will have 73 categories for vehicles priced under $75,000. Previously Nationwide used 22 categories.

In the new classification system most of Nationwide's new rating symbols are in $1,000 increments, allowing agents to rate a policyholder's vehicle more closely to the vehicle's price. "The (former) rating symbols have worked pretty well for many years," said Marvin A. Johnson, Nationwide's vice president of personal lines pricing. "But with the vast array of models in different price ranges to choose from and consumers buying many pricey vehicles, an expanded system is needed."

Most state insurance departments have approved Nationwide's new rating symbols. Approval is pending in South Carolina. Four other jurisdictions-Massachusetts, North Carolina, Texas and

Puerto Rico-have separate vehicle symbol plans.