Why Nevada Car Insurance Rates are Increasing
Many times I will hear from a client with an excellent driving record wondering why their auto insurance premium is increasing. There are a few factors at work that are contributing to the rate increase and have nothing to do with being a "good driver". Here in the Las Vegas valley we are seeing a trend where rates are increasing and Nevada currently ranks 15th among states with the highest auto insurance rates. Typical recent rate increases can be as high as 10 - 15% and sometimes more. The Nevada Division of Insurance regulates over 180 providers of auto insurance and their job is to protect consumers by making sure these insurers remain solvent and can meet the claims filed by their policyholders.
In 2011, Nevada auto insurers paid out just north of $1 billion for claims filed, by 2015 the payout amount ballooned to $1.4 billion. The payout increase leads to an increase in premium amounts so that the insurers can meet their obligations and remain solvent.
Other factors that have contributed to the auto insurance rate hikes include:
1) Lower gas prices - with cheaper gas comes more cars out on the road at any given time. More cars on the road means there is an increase in accidents on our roads.
2) Las Vegas police reported over 13,000 crashes in the first 3 quarters of 2016 which was up from 8,500 reports during the same period in 2015
3) In addition to an increase in accidents comes an increase in the amount of money paid out per claim. The days of hammering out a dent on a fender bender for a low price are over. Today the advanced technology in our cars has to be repaired/replaced and that is adding thousands to the cost of repairs.
4) Theft - Auto theft is on the rise in Nevada. There was an increase of about 12% for auto thefts in 2015. These thefts result in large payouts for the insurers and those cost are passed along to drivers in the form of premium increases.
If you are experiencing a significant rate increase, do yourself a favor and shop around for a better deal. Here at Jon Spalding Insurance, we shop the market for you and determine which A rated carrier is going to offer you the best deal. The expectation moving forward is that as our valley continues to expand, our auto insurance rates will continue to increase. The key is to make sure you are with a company that is having small increases as opposed to one that is having large increases.