Nevadans can expect to see their auto insurance rates rise again, with six insurers set to increase rates by at least 10% in October. This trend is not limited to Nevada, as auto insurance costs have been rising nationally, with an 18.6% increase in the Consumer Price Index for auto insurance from July 2023 to 2024, according to the Bureau of Labor Statistics.
The Nevada Division of Insurance cites several factors contributing to these rate hikes, including rising car expenses, insurance fraud, litigation, poor driving habits, and the increase in Las Vegas’ population. The division also notes that recent increases can be attributed to losses incurred by property and casualty carriers operating in Nevada.
While all insurers must go through the Division of Insurance when requesting a rate change, the approved rate is typically lower than the indicated rate. The division aims to protect the rights of Nevada consumers and ensure the financial solvency of insurers, while also ensuring that approved rates are not excessive or discriminatory.
According to Country Financial, one of the companies anticipating an increase, “As claims become more costly due to inflation, lawsuit abuse and increases in everything from repair-related labor rates to parts costs and building materials, insurance carriers around the country have been adjusting rates.”
Nevada is currently ranked 4th for the highest auto insurance rates in the country, with the average annual cost for full coverage car insurance being $3,549. Residents pay almost 5% of their yearly income on auto insurance, partly due to Nevada’s relaxed alcohol laws and the high number of Las Vegas partygoers, which drive up auto insurance costs.
The specific rate increases for each insurer are as follows:
Allstate Fire and Casualty: 10.8% increase on Oct. 28, affecting 94,804 Nevadans
Farmers Group Property and Casualty Insurance: 24% increase, affecting 8,033 Nevadans
Amica Mutual: 17.9% increase on Oct. 1, affecting 2,362 Nevadans
Country Mutual Insurance: 31.8% increase, affecting 1,856 Nevadans
Country Preferred Insurance: 29.5% increase, affecting 3,942 Nevadans
Country Casualty Insurance: 25.4% increase, affecting 225 Nevadans
The Division of Insurance encourages consumers to review their individual situations with their insurance representatives to find the best solutions for managing risks.
