Why do my insurance rates keep going up? I'm a good driver and I always pay on time, why is my insurance getting so high? These are concerns we are faced with every day. Regular living expenses are high enough and we get that paying for insurance is dreadful. We get clients who also say that while living in another state, the insurance they had was significantly cheaper rates. Why is that?! To start, rates are an estimate of liability costs. The higher the liability the higher the rate. Las Vegas is a transient city, people are constantly coming and going. Tourism creates traffic and the usual activity of tourists is to drink. Therefore causing higher rates of drinking and driving. Which is a liability and a risk. Other factors such as high urban population, elevated theft rates, medical costs, and state regulations play a crucial role.
With 94% of Nevada residents living in urban areas, which causes congestion, raises the probability of collision; contributing to the high insurance rates. Nevada has one of the highest rates for car thefts in the country, and depending on the durability and safety features your vehicle is equipped with you should expect higher rates. These thefts directly affect the comprehensive part of your insurance. The rates of a city or state get adjusted to the population of that area, meaning, more people, more money. More people in an area raise the risk of car theft and vandalism among other factors.
The downward spiral of our economy is the biggest influence on insurance. The raising cost of materials, labor and living affect our insurance rates. When in an accident the materials needed to repair a vehicle are now more costly than before, and the labor that goes along with that is not cheap anymore either.
Nevada had a mandatory state increase on insurance requiring all drivers to carry $25,000 for bodily injury, $50,000 total for bodily injuries per accident, and $20,000 for property damage per accident. This was due to a 67% increase in bodily injuries. The increases started back in 2018 with the passing of Senate Bill 308 in the Nevada State Legislature, and have been going up since because of the increase in these bodily injuries and automobile collisions. The previous rates were at $15,000 per person, $30,000 per accident for bodily injury liability, and $10,000 for property damage liability.
When deciding which insurance policy best fits your needs and what fits your budget, it is always a good idea to be well informed on the choices you have. Your insurance agent is there to help and guide you through the decision making process and lay out all the facts for you. They will be able to efficiently display your options to you while ensuring your getting the best rate.