Two major auto insurers, Allstate and CSAA, are set to raise their auto insurance rates in Nevada starting in late May, affecting nearly 150,000 residents. These rate increases have been approved by the Nevada Division of Insurance, which ensures that any rate changes are justified and not excessive or discriminatory.
Allstate Fire and Casualty Insurance Company will implement an 8.6 percent increase in its private auto insurance rates, affecting 82,665 policyholders. This change, effective May 26, follows a previous 10.8 percent hike in October of the previous year. Meanwhile, CSAA General Insurance Company will increase its rates by 12.64 percent for 65,608 policyholders starting July 1. The last time CSAA adjusted its rates was in July, with an 8.052 percent increase.
These changes come at a time when Nevada’s annual insurance rates are already among the highest in the nation. According to a Bankrate study, Nevada ranks fourth highest for full coverage costs and sixth for minimum coverage costs.
The Division of Insurance attributes these rate increases to several factors, including rising car and repair expenses, insurance fraud, litigation, and population growth in Las Vegas. Additionally, insurers are reportedly using non-driving factors such as credit scores to determine premiums, which can result in significantly higher costs for those with lower credit scores.
Michael DeLong from the Consumer Federation of America highlights that these non-driving factors can unfairly inflate premiums and urges consumers to advocate for stronger protections. He advises consumers to improve their credit scores, shop around for better rates, and take advantage of available discounts to help manage insurance costs.