Rising Car Insurance Rates in Nevada: What Drivers Need to Know

If you’re a driver in Nevada, you may have noticed a significant increase in your car insurance premiums recently. Unfortunately, the upward trend will continue this year. Nine private passenger auto insurance companies, including large carriers such as Allstate and Key, have rate increases starting as soon as October 1, 2024, and affecting over 137,000 Nevadans according to the Nevada Division of Insurance. The increases will affect many individual drivers and small business owners across the state, leading to frustration and confusion. At Anthem Injury Lawyers we believe in keeping our clients and the community informed about important changes that may affect them, so read on to learn more about why this is happening and what you can do to help yourself and your family.

Why Are Car Insurance Rates Going Up in Nevada?

While rates are going up across the country, several key factors are driving the recent surge in car insurance premiums for Nevada drivers specifically.

1. The Las Vegas Review Journal recently reported on tourism’s impact on rates in their article Your auto insurance is going up again. Las Vegas partygoers’ are partly to blame. In the article, the Journal noted that according to Insurance Business, Nevada already has the fourth most expensive insurance rates in the United States due to “Nevada’s relaxed alcohol laws and the high number of Las Vegas partygoers.”
2. Increase in Accident Frequency and Severity: Since the easing of pandemic restrictions, more vehicles have returned to the roads, leading to an increase in both traffic and accident rates. Moreover, the severity of accidents has also risen, resulting in higher costs for insurers who must pay out more for repairs, medical bills, and liability claims.
3. Inflation and Higher Repair Costs: Inflation has affected almost every industry, and auto insurance is no exception. The costs of car parts, labor, and medical care have all increased. When the cost of repairs and medical treatment rises, insurance companies must adjust their rates to cover these additional expenses.
4. Supply Chain Disruptions: Ongoing supply chain issues have resulted in a shortage of car parts and longer repair times, further driving up repair costs. This means that insurance companies are paying more to cover claims, which translates into higher premiums for consumers.
5. Rising Medical Costs: Medical costs associated with car accidents, including emergency care, surgeries, and rehabilitation, continue to climb. Since a significant portion of auto insurance payouts is related to bodily injury claims, rising medical expenses directly impact the cost of insurance.
6. Increased Litigation and Legal Costs: The cost of litigation associated with car accidents has also gone up. More claims are being contested by insurance companies in court, and the cost of legal representation is rising. This increase in legal expenses contributes to higher overall insurance premiums.
7. Changes in Insurance Regulations and Minimum Coverage Requirements: Nevada has recently updated some of its minimum liability coverage requirements. As a result, drivers are required to carry higher levels of insurance coverage, which can lead to higher premiums. Additionally, insurers are recalibrating their rates based on new regulatory requirements. According to the Nevada Department of Motor Vehicles, Nevada requires that automobile liability insurance policies carry minimum coverage of $25,000 for bodily injury or death of one person in any one accident; $50,000 for bodily injury or death of two or more persons in any one accident; and $20,000 for injury to or destruction of property of others in any one accident.

What Can Nevada Drivers Do to Combat Rising Insurance Rates?

Although many of these factors are beyond your control, there are steps you can take to help manage and potentially reduce your car insurance premiums:

1. Shop Around and Compare Rates: Insurance companies calculate rates differently based on risk assessments, claims histories, and customer profiles. By shopping around and comparing quotes from multiple insurers, you may find a more affordable rate that fits your needs. You can also consult an insurance broker or use an online service to shop multiple rates at once.
2. Consider Usage-Based or Pay-Per-Mile Insurance: If you drive less frequently, you may benefit from usage-based or pay-per-mile insurance programs. These types of policies calculate premiums based on how much you drive and your driving behavior, which could result in significant savings if you are a low-mileage driver. Not all insurance companies carry these policies so you may have to call around to find one.
3. Raise Your Deductible: Increasing your deductible can lower your monthly premium. However, this means you’ll pay more out-of-pocket if you need to file a claim. Make sure you choose a deductible amount that you can afford in the event of an accident.
4. Take Advantage of Discounts: Many insurance companies offer various discounts for safe driving, good grades for students, completing defensive driving courses, bundling policies, or maintaining good credit. Contact your insurer to see what discounts you might be eligible for and how much you could save
5. Be a Safe Driver: A history of accidents or traffic violations can significantly impact your insurance rates. By practicing safe driving habits and avoiding tickets and accidents, you can help keep your premiums as low as possible.
6. Review and Adjust Your Coverage: Review your existing auto insurance policy to ensure you have the appropriate level of coverage for your needs. For instance, if your vehicle is older and less valuable, you may not need comprehensive coverage, which could help lower your premiums.

How Anthem Injury Lawyers Can Help

If you’ve been injured in a car accident that was not your fault and are facing challenges with your insurance company or the other party’s insurance company, we are here to help. From negotiating with insurers to handling your medical needs, our team is dedicated to ensuring you receive fair treatment and the compensation you deserve.

Contact Us for Help with your Car Accident

Navigating the complexities of a car accident can be challenging, but you don’t have to do it alone. Contact Anthem Injury Lawyers today to schedule a consultation and learn how we can assist with your legal needs. Our experienced and compassionate attorneys are here to protect your rights and help you make informed decisions.