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NATIONWIDE INSURANCE RATE CHANGE ON WAY FOR OHIO DRIVERS

 COLUMBUS, Ohio, Jan. 14 /PRNewswire/ -- Nationwide Insurance, the Buckeye State's second largest auto insurer, will revise its insurance rates in Ohio, effective tomorrow.
 The premium Nationwide collects in the state will drop by 2.3% - an average of $11 semi-annually for each policyholder. However, individual rate changes will vary according to where drivers live, their ages, accident and violation records, types and amounts of coverages, and other factors.
 Rates will drop for about half of the company's policyholders in the state, primarily those who insure both their homes and cars with Nationwide. The company's discount for those policyholders will rise from 5% to 10% of overall premium.
 Most other drivers are likely to see either negligent change or a slight increase in their rates.
 Jerry D. Daughtry, vice president and manager of Nationwide's Ohio operations, based in Canton, said a variety of factors contribute to the overall rate reduction.
 "Nationwide is taking steps to settle claims more efficiently, and we're beginning to see that improvement in the rates we charge," he said. "We're also seeing fewer claims, which may be a result of better auto safety features and milder winter weather in recent years."
 The rate decrease -- the company's second in Ohio since June 1992 -- was tempered by significant increases in the cost of some medical components of auto policies, primarily because of the rising cost of health care.
 Medical payments and family compensation coverages, which pay health care bills for policyholders and their passengers injured in an accident, each will rise more than 12%, on average. Uninsured motorists coverage, which pays for the driver's and passengers' injuries in traffic accidents caused by uninsured motorists, will rise nearly 11% on average.
 On the other hand, prices for comprehensive coverage will drop an average of nearly 16% because of fewer than expected claims, while collision and bodily injury liability coverages will drop 2% and 3%, respectively.
 Meanwhile, Nationwide is closely monitoring the effect of a recent Ohio Supreme Court decision that broadened the scope of uninsured motorist coverage. The October decision in Savoie vs. Grange Mutual could push up the cost of uninsured motorists coverage.
 Nationwide, the country's fourth largest auto insurer, provides coverage on more than 756,000 private passenger vehicles in Ohio.
 -0- 1/14/94
 /CONTACT: Lou Fabro, 614-249-6341, Jeff Botti, 614-249-6339, or Bob Sohovich, 614-249-6356, all of Nationwide Insurance/


CO: Nationwide Insurance ST: Ohio IN: INS SU:

CM-BM -- CL013 -- 7437 01/14/94 15:30 EST
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Publication:PR Newswire
Date:Jan 14, 1994
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