LAS VEGAS (KTNV) — If you're feeling the pinch every time you pay for car insurance, you're not alone. Nevada drivers are bracing for another steep hike in auto insurance premiums, with rates expected to rise by 14.5% this year.
Las Vegas drivers in particular are paying more than ever to stay insured. While this sharp increase is part of a larger nationwide trend, many locals are increasingly worried about how to afford it.
With premiums soaring, tough budgeting decisions have become unavoidable for many in the valley.
Devin Bruton, a Las Vegas resident, shared the impact on his finances.
“I would have to cut back on luxuries,” Bruton said, describing the burden of paying over $500 a month for insurance on two cars.
Nevada now ranks as the third-most expensive state for auto insurance, with the average annual premium reaching nearly $3,000. According to a report from ValuePenguin by LendingTree, premiums in the Silver State are expected to rise by 14.5% in 2025 alone.
Why the Increase?
“It all comes down to claims,” said Divya Sangameshwar, a ValuePenguin analyst, pointing to several factors driving the increase.
“More accidents, bad weather, floods, fires, and a surge in crime are all contributing to higher costs. These issues affect cars just as much as homes in many cases,” Sangameshwar explained.
While the projected 14.5% hike is significant, Sangameshwar noted it pales in comparison to last year’s staggering 28.6% increase.
“Although it’s still a large jump, this year’s increase is not as extreme as what drivers experienced in 2024,” she said.
Struggling to Stay Compliant
Drivers are feeling the pressure to meet state laws requiring mandatory auto insurance, even for minimum coverage. Many say they’re nearing a breaking point.
“I don't like it, but there's nothing I can do to change it,” Bruton said.
Another driver, Charie, shared a stark outlook.
“Worst comes to worst, we’ll just drive without insurance,” she said.
Jason, another local resident, echoed their concerns.
“Knowing it’s going to increase that much is frustrating, and it’s going to create a real hardship,” he said.
How Drivers Can Save
Experts advise that despite the rising rates, there are ways to ease the financial burden. Sangameshwar recommends shopping around for better deals, asking about safe driving and low-mileage discounts, and, most importantly, maintaining a clean driving record.
“Safe driving is not only good for your physical health—it also helps lower your rates,” Sangameshwar said. “Getting a ticket, causing an accident, or having a DUI can raise your personal insurance rate by 48%.”
To read the full ValuePenguin report and explore tips on how to save, click here.
