Nevada car insurance rates among highest in nation

Nevada ranks as one of the most expensive in the nation when it comes to the cost of car insurance.

Higher rates for Las Vegas customers drive up the average for the entire state, according to industry experts.

Coming in at 43rd out of 50 states, the average cost for full car insurance coverage in Nevada is $2,779 per year, about $765 higher than the national average, according to a data compiled by personal-finance site Bankrate.

Las Vegas drivers on average pay $2,840 a year. The average cost in Henderson and North Las Vegas is $2,571 and $2,827 respectively.

Gennady Stolyarov II, lead actuary with the Nevada Division of Insurance, said Las Vegas stands apart from the rest of state. Driving conditions in the rest of the state are comparable to surrounding states.

“It’s a densely populated area. There is a 24/7 type of economy there,” Stolyarov said of Las Vegas. “A lot of traffic, a lot of out of state visitors that go in and out and this tends to drive up both frequency and severity of loss.”

Factors such as driving record, credit score, adding a teenage driver and type of vehicle all impact the average premium cost by varying degrees.

Toyota Camry drivers in Nevada have the same statewide average cost of full-year coverage compared with the Ford F-150 ($2,548), Honda Odyssey ($2,361), BMW 330i ($3,717) or Toyota Prius ($3,717), according to Bankrate.

Drivers in California pay the highest added cost after a single at-fault crash with the average rate increasing by $1,498 per year. A Nevada driver’s rate after a crash increases by about $1,100 on average. Being convicted of DUI in Nevada leads to the highest increase in cost at about $1,725 a year.

Higher premiums do not necessarily mean that drivers in a certain city or better or worse.

“You could be a good driver but in bad traffic and you could be in circumstances where it’s harder to avoid an accident,” Stolyarov said.

New York drivers with poor credit pay $7,186 a year on average — the highest rate in the nation. Drivers in Nevada with poor credit pay about $4,000 compared with $2,480 for those with excellent credit. Credit score is not a factor California, Hawaii and Massachusetts, according to Bankrate.

Getting married and adding a teenage driver causes the highest average increase in coverage in Miami adding $3,754 to a driver’s annual rate. Insuring a teenage driver in Nevada adds about $3,500 to an annual rate.

Stolyarov said insurance carriers have to justify rate increases for the Division of Insurance to approve them but in recent years there have been more increases approved because of supply chain issues and staffing shortages at body shops.

“It’s always wise for consumers to get a number of different quotes periodically when it’s time to renew, not just their auto insurance, but any line of insurance that they have to make sure that not only are they getting the best coverage for their own particular situation but also getting a good rate,” Nevada Division of Insurance Commissioner Scott Kipper said.

Contact David Wilson at dwilson@reviewjournal.com. Follow @davidwilson_RJ on Twitter.