LAS VEGAS (KTNV) — With everything from gas prices to rent already climbing, Las Vegas drivers are now facing another big hit — higher auto insurance rates.
Six major insurance companies in Nevada will be raising rates by at least 10% in October.
So, what's driving these costs, and what can you do to manage your premiums? I met with a local whose story may sound familiar and an insurance agent to help me get those answers for you.
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“I just came from mental health counseling, it’s too high,” said valley resident Bob Hirch.
Bob said moving to the valley from the east coast three years ago seemed like a good idea until he saw just how much he's paying for car insurance.
“My rates in Maine were half of what they are here," Bob said.
He told me the cost of everything is high. He had to downsize from his home just to keep a roof over his head.
"We are not able to find the cash flow every month to handle the insurance and everything else," Bob said.
And he is not alone.
Nevada ranks 4th in the nation for the highest car insurance rates, with the average yearly cost for full coverage coming in at more than $3,500 a year.
And now the Nevada Division of Insurance says some companies are increasing premiums, once again, by at least 10% next month.
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“I have been seeing rate increases more than double," said insurance broker Patrick Casale.
Patrick said that while we're feeling the impact here locally, it's a nationwide trend and rates could keep climbing.
Who is deciding this rate increase and who tracks that?
“The carriers go to the state department of insurance with their losses and show why they need to raise revenue, because we are losing money," Patrick said.
“We are a melting pot of people, from all over the country, New Yorkers, Midwest, Southwest, out of the United States, everyone drives differently, that is part of the problem that is why our rates are so dang high.”
So what are some tip to help us?
“Evaluate your comprehensive and collision — that is going to be the meat and potatoes of your policy, a general liability is a general liability, carry a 50 and 100, and $50,000 in property damage," Patrick said.
He also said:
- Shop around and compare rates from different insurers
- Look for discounts for good driving or bundling policies
- If possible, consider raising your deductible to lower your monthly payments
“Everything involved is very tough for people on a fixed income, cause I know my income didn’t go up 10%. If I had a choice I would leave Las Vegas," Bob said.
As you can see — for so many of us — like Bob, every dollar counts.
I wanted to go one step further and find out why state officials justify rate increases and what they do to protect consumers in these situations.
In a statement, the Nevada Division of Insurance told me this:
