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Summary
Car insurance in Nevada is expensive due to factors such as high population density, inflation, attorney costs, increased medical care and repair costs, and severe weather events.
Table of Contents
Why Is Nevada Car Insurance So Expensive
Nevada car insurance costs are some of the highest in the country.
The notable cost difference in Nevada car insurance rates is caused by a few key factors explored below.
High Population Density
While the state of Nevada is relatively bare to its size, big cities within it, such as Las Vegas and Reno, have high urban population density, which increases the likelihood of car accidents, vehicle theft rates, and higher medical costs.
These urban areas create the perfect storm for insurance companies to roll out higher premiums.
Inflation
The current inflation rate as of November 2024 is 2.7%, which means the costs for things such as food, gas, and insurance have all risen for Americans.
However, increased insurance costs due to inflation especially hit Nevadans, who have already suffered from rising insurance costs over the years.
Attorney Costs
When a Nevada personal injury attorney represents someone injured in a car accident, they tend to take around 35-40% of the final settlement, which incentivizes the attorney to obtain a high compensation amount.
While this benefits the client, it indirectly raises rates, as the attorney fees are passed on to the auto insurance company, increasing their costs.
Higher Medical Expenses
The cost of medical care in the U.S. has substantially risen over the years, which, as a result, drove up the payouts for bodily injury insurance claims, causing insurance companies to raise premiums to deal with the large payouts.
Rising Repair Costs
Out of all the contributing factors, the rising cost of vehicle repairs may be a critical factor in rate increases; as CNBC reported, repair costs have increased by over 20% in the last year.
This means that when someone gets into an accident, the higher repair costs force them to seek a higher settlement amount from the auto insurance company, which causes the insurer to raise the annual premium to cover the higher payouts.
Severe Weather
While extreme weather is not common in Las Vegas, when an adverse weather event occurs, such as heavy rain or flooding, Nevada drivers are often unprepared or overestimate their driving skills in bad weather, which increases the possibility of a car accident, which can result in higher premiums.
Uninsured and Underinsured Drivers
According to Bankrate, 8.8% of drivers in Nevada are uninsured.
Due to these high uninsured rates, insurance companies impose higher rates in order to mitigate the increased risk that uninsured drivers pose.
Tourism
Las Vegas attracts over 40 million tourists yearly, and according to the Las Vegas Review-Journal, this high number of tourists may be contributing to the increasing insurance costs.
What Is the Average Cost of Car Insurance in Las Vegas?
In Las Vegas, the average rate for full-coverage auto insurance is around $2,500 to $3,000 annually, and for state-required minimum-coverage auto insurance, it is around $800 to $1,200.
The average Nevada car insurance cost is around double the national average of $1,500, emphasizing the importance of Nevada drivers taking advantage of discounts and maintaining a safe driver record, avoiding traffic violations and motor vehicle accidents.
These prices only apply if you have a clean driving record, as insurance companies may raise your insurance premiums if you're considered a higher-risk driver or have a poor credit score.
Who Has the Cheapest Car Insurance in Nevada?
If you live in a populous city in Nevada, such as Las Vegas or Reno, knowing where to find affordable car insurance amid rising insurance premiums is vital to your financial well-being.
Nevada Drivers with a clean record and good to excellent credit can find cheap insurance coverage:
- Geico: The typical annual premium for minimum coverage is around $350, and for complete coverage, it is around $1,100.
- State Farm: Car insurance with minimum coverage costs $400, while full coverage costs about $1,200.
- Progressive: Drivers pay around $450 for minimum liability coverage and roughly $1,000 for full coverage.
- USAA: USAA is only available to military member and their families and costs around $350 for minimum liability coverage and $1,000 for full coverage.
- Framers Insurance: Framers insurance costs around $400 for minimum liability coverage and $1,300 for full coverage.
When shopping for insurance, investing in full coverage is highly recommended.
While the car insurance premium will be higher, you'll be covered for numerous unexpected events, such as if the driver is uninsured or underinsured.
What Is the Minimum Car Insurance for Nevada?
Despite increasing car insurance costs, Nevada law requires all drivers to carry a minimum level of car insurance to ensure that those injured in a potential accident can be financially compensated.
Under NRS 485.185, all drivers in Nevada must have 25/50/20 coverage, which includes:
- $25,000 per person injured in an accident
- $50,000 total for all persons injured in an accident
- $20,000 for property damage
Failure to have the minimum insurance requirements or proof of insurance can result in severe punishments such as fines or license suspension.
What Can You Do to Fight Rising Nevada Car Insurance Rates
Knowing how to obtain a lower rate or combat a high annual premium is key to mitigating the financial damage that rising insurance costs may cause.
Key ways to fight a rising annual premium are:
- Identity Cheap Insurance: Insurance company rates are constantly changing, so it's essential to compare quotes from multiple insurers and find the one that works best with you.
- Utilize Discounts: Talk to your insurer about potential discounts such as safe driver and multi-policy discounts.
- Look into Usage-Based Insurance Programs. Insurance companies offer telematic programs that track driving behaviors and determine rates based on the data, allowing you to have a custom rate.
- Increase Your Deductible: If you can afford a higher deductible, it may be wise to increase it as it can significantly lower your premium.
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Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
