Nationwide is one of the largest insurance companies in the United States, but its role in auto financing is frequently misunderstood. Nationwide is not a mainstream auto lender — it doesn’t offer vehicle purchase loans the way banks or credit unions do. However, Nationwide does offer insurance products that intersect significantly with auto financing, including GAP insurance and specialized coverage that matters when you’re financing a car.
What Nationwide Actually Offers for Auto
| Product | Available Through Nationwide? |
|---|---|
| Auto purchase loan | No (not a direct auto lender) |
| Auto refinance loan | No |
| Auto insurance (full coverage) | Yes |
| GAP insurance | Yes |
| Usage-based insurance (SmartRide) | Yes |
| Accident forgiveness | Yes |
| Classic/collector car insurance | Yes |
| Roadside assistance | Yes (as an add-on) |
Nationwide Auto Insurance: What It Covers
If you’re financing a vehicle, your lender requires comprehensive and collision insurance coverage. Nationwide is a competitive option for meeting this requirement.
Nationwide standard auto coverage includes:
- Liability: Bodily injury and property damage to others
- Collision: Damage to your vehicle from accidents regardless of fault
- Comprehensive: Non-collision damage — theft, weather, vandalism, hitting an animal
- Uninsured/underinsured motorist: Protects you when the at-fault driver lacks adequate coverage
- Medical payments (MedPay): Medical expenses for you and passengers
- Rental reimbursement: Daily rental car costs while your vehicle is repaired
Nationwide-specific features:
- SmartRide: Usage-based insurance program that monitors driving behavior (braking, acceleration, mileage) and can reduce premiums by up to 40% for safe drivers
- Accident Forgiveness: Prevents your first at-fault accident from increasing your rate
- Vanishing Deductible: Your deductible decreases by $100 for each year of claim-free driving
Nationwide GAP Insurance — A Smart Alternative to Dealer GAP
The most valuable intersection of Nationwide and auto financing is GAP insurance. When you finance a car, particularly with a small down payment or long loan term, you may owe more than the car is worth for the first 2–3 years. If the car is totaled or stolen, your standard insurance pays only the car’s current market value — leaving you to pay the difference to the lender.
GAP insurance covers that difference.
Why buy GAP from Nationwide (or any insurer) vs. the dealer:
| Source | Typical GAP Cost |
|---|---|
| Dealer (rolled into loan) | $500–$1,000 one-time (often financed, adding interest) |
| Insurance company add-on | $20–$40/year |
Buying GAP from Nationwide or your existing insurer can save you hundreds of dollars compared to dealer-sold GAP.
When GAP insurance makes sense:
- You put less than 20% down
- Your loan term is 60 months or longer
- You bought a vehicle with rapid early depreciation
- You’re leasing (GAP is essentially standard in leases)
When you don’t need GAP:
- You put 20%+ down and the car won’t depreciate faster than you’re paying it off
- You’re in the final 2 years of your loan (you likely have equity now)
Nationwide Financial Strength and Ratings
When choosing an insurer, financial strength matters — especially for major claims. A financially weak insurer may delay or underpay claims when it matters most.
Nationwide 2026 ratings:
- AM Best: A+ (Superior) — among the highest ratings for financial stability
- S&P: A+ — investment-grade financial strength
- NAIC complaint index: Historically below industry average (fewer complaints than expected for its market share)
How to Get Auto Financing If Nationwide Doesn’t Offer It
Since Nationwide doesn’t provide auto loans, use these sources for vehicle financing:
Best for excellent credit (720+):
- PenFed Credit Union
- Alliant Credit Union
- Your primary bank’s auto loan department
Best for good credit (670–720):
- Capital One Auto Navigator
- Bank of America Auto
- LightStream (unsecured personal loan option for qualifying borrowers)
Best for fair credit (580–670):
- Local credit union
- Capital One Auto Navigator
- AutoPay marketplace (shops multiple lenders)
Best for subprime (below 580):
- Westlake Financial (through dealers)
- Credit Acceptance Corporation (through dealers)
- BHPH (buy here, pay here) dealers as a last resort
Nationwide vs. Other Major Auto Insurers
| Insurer | AM Best Rating | Known For |
|---|---|---|
| Nationwide | A+ | SmartRide UBI, financial strength |
| State Farm | A++ | Agent network, customer service |
| GEICO | A++ | Low rates, digital experience |
| Progressive | A+ | Usage-based (Snapshot), SR-22 |
| Allstate | A+ | Claim satisfaction, Drivewise |
| USAA | A++ | Best rates for military (restricted eligibility) |
All major insurers listed here are financially sound. Your best rate will depend on your driving record, location, vehicle, and coverage needs — shop at least 3 quotes before choosing.
Combining Your Auto Loan and Nationwide Insurance
If you use a bank or credit union for your auto loan and Nationwide for insurance, here’s how to coordinate:
- Get your auto loan pre-approval first — confirm the loan amount and lender
- Secure comprehensive and collision coverage through Nationwide (required by the lender)
- List the lender as the lienholder on your Nationwide policy — this is required
- Add GAP coverage to your Nationwide policy for $20–$40/year if you’re putting less than 20% down
- Explore SmartRide — safe driving behavior can offset your insurance cost over time
The Bottom Line
Nationwide is not a source of auto loans, but it is a legitimate and financially strong auto insurance provider. If you’re financing a vehicle, get your loan from a bank, credit union, or online lender — then use Nationwide (or another insurer) for required auto insurance. Add GAP coverage through your insurer rather than the dealer for significant savings.
Related reading:
- Direct Auto Financing Explained
- Auto Financing Before the Dealership
- PenFed vs. US Bank Auto Loans
- Is AAA Worth It?
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy