(702) 857-6000Recently, local Las Vegas news station KTNV ABC13 highlighted the lack of transparency regarding hidden fees in auto insurance policies. Hidden fees in auto insurance policies are additional charges not clearly disclosed to the policyholder at the time of purchase. In Nevada, these fees can unexpectedly increase your costs. Being aware of these potential fees and taking proactive steps can help you avoid surprises. Because we care, Anthem Injury Lawyers explains common hidden fees, including excluded driver fees, and provide actionable advice for dealing with them. Keep reading to learn more.
Common Types of Hidden Fees
- Policy Setup Fees
Insurers may charge a one-time fee to set up your policy, which may not be clearly stated upfront. These fees can vary but are often listed in the fine print of your contract.
- Installment Fees
If you choose to pay your premiums in monthly installments rather than in a lump sum, insurers may add service or installment fees for each payment.
- Late Payment Fees
Missing a payment or paying after the due date can result in costly late fees. These fees are usually outlined in the terms of your policy but are often overlooked.
- Cancellation Fees
Canceling your policy before the term ends may incur a penalty. This fee can vary depending on the insurer and how far you are into the policy term.
- Paper Billing Fees
Some insurers charge extra for sending paper statements or bills. Opting for electronic billing can often waive these fees.
- Administrative or Processing Fees
Policyholders may be charged for administrative tasks such as adding a new vehicle, changing coverage options, or updating personal information.
- Excluded Driver Fees
Nevada allows policyholders to exclude specific drivers, such as high-risk individuals, from their auto insurance policy. However, adding an excluded driver to your policy can come with fees, especially if the excluded driver uses the vehicle. In some cases, insurers may impose fines or increased premiums if the excluded driver operates your vehicle and causes an incident. Always confirm with your insurer how excluded drivers are handled and whether additional fees apply.
What Consumers Should Do
- Review Policy Details Thoroughly
- Before purchasing a policy, request a full breakdown of all fees in writing.
- Pay close attention to fine print and terms related to late payments, cancellations, and excluded drivers.
- Ask Direct Questions
- Ask your insurance agent about any hidden fees, including fees for excluded drivers, policy changes, or monthly payment plans.
- Inquire specifically about charges if an excluded driver operates the insured vehicle.
- Compare Policies
- Use online tools like Nevada Division of Insurance’s Consumer Resources to compare multiple insurers and find those with transparent fee structures.
- Check for Transparency
- Choose companies with strong reputations for clear communication and fair practices. Customer reviews and complaint records can provide valuable insights.
- Pay Premiums in Full
- Paying your premium in full at the start of the term can help you avoid installment fees and reduce overall costs.
- Opt for Electronic Billing
- Avoid paper billing fees by choosing electronic statements and payments.
- Minimize Policy Changes
- Reduce administrative fees by consolidating updates to your policy and making them all at once instead of multiple times during the term.
What to Do If You Encounter Hidden Fees
- Document Everything: Save copies of all communications, billing statements, and policy agreements.
- Contact Your Insurer: Ask for a clear explanation of any fees you believe to be hidden or unfair.
- File a Complaint: If your insurer refuses to resolve the issue, you can file a complaint with the Nevada Division of Insurance. Their website provides a simple process to report grievances.
- Seek Legal Advice: For significant or unresolved issues, consult with a consumer protection attorney to ensure your rights are protected.
Key Takeaways
Hidden fees in Nevada auto insurance policies can take various forms, including policy setup, installment, cancellation, and excluded driver fees. By being proactive, reviewing policy terms carefully, and asking direct questions, you can avoid surprises. Use resources like the Nevada Division of Insurance to stay informed and protect yourself from unfair charges. If necessary, take action by filing a complaint or seeking legal assistance to ensure fair treatment.
Have you or a loved one been involved in a motor vehicle accident? At Anthem Injury Lawyers, we are here to help you. No matter what type of vehicle was involved, whether it was a truck, car, motorcycle, scooter, taxi, Uber/Lyft, or if you were a pedestrian, we can help. Call us today at (702) 930-2804 or visit us at Anthem Injury Lawyers to get a free consultation.
Last updated Friday, January 24th, 2025
