‘A huge expense:’ Auto insurance becoming unaffordable for some Nevadans

At 19 years old, Nadia Guillen is trying to get a second job to pay for her car insurance.

“I’m currently living with my grandma, but I’m going to move into apartment soon,” said Guillen. “But that’s why I’m also looking for a new job, because I can’t pay for the apartment and insurance at the same time.”

Currently, Guillen pays around $280 a month for insurance on her 2005 Hyundai Tuscon with provider Mendota, which she says is her biggest expense. Guillen used Freeway, which runs insurance quotes, to try and find the cheapest rates possible.

Guillen, who has been working in the food industry since she was 16, is on the lookout for a job that pays around $18 an hour.

“What if I never get into a car accident?” said Guillen. “It’s just collecting up my funds. Makes no sense.”

Car insurance is at the front of many Nevadans’ minds, with several providers increasing premiums over the last several months.

According to Insurify, Nevada has the No. 7 highest auto insurance rates in the country, with the cost expected to rise to over $3,000 annually in the new year. The national average for full coverage insurance is $2,313 annually.

In 2024, the average cost of full coverage car insurance in Nevada was $2,973 annually, according to Insurify. The projected cost for 2025 is $3,214, an 8 percent increase.

For reference, according to the National Association of Insurance Commissioners, in 2022, the combined average premium in Nevada was $1,420.51.

Janet Santos and her husband Jaime experienced an unprecedented increase in their car insurance when they got their bill in January: it was $2,800 for six months of coverage.

The couple uses Geico for auto insurance and pays every six months for coverage on their two cars, a 2021 Toyota Camry and a 2018 Nissan Kicks.

“I save money every month, so when it does come up, it’s not as much, but I’m not saving enough money every month to cover this,” said Santos. “It’s definitely a huge expense.”

This is not the first time the couple has experienced an increase like this. In July 2023, they were paying $1,800 for their insurance every six months, but by July 2024, their car insurance increased to $2,900.

When she received an increase in the past, she was given no notice, the bill just “came in.”

Are rates really going up?

Yes, auto insurance rates are undoubtedly on the rise.

According to the Consumer Price Index, motor vehicle insurance increased the most after eggs — based on goods and services it tracks — from 2023 to 2024, experiencing an 11.3 percent jump. Motor vehicle insurance rose 20.3 percent in 2023 over the previous year, according to the index.

In Nevada, at least six auto insurers, including Allstate and Farmers, raised their rates for private vehicles by at least 10 percent in October, according to the Nevada Division of Insurance. Four auto insurers have requested to raise rates in November and into the new year.

Coast National Insurance Company raised rates by 6.77 percent in early November, affecting 8,236 Nevadans, according to the Division of Insurance. GoAuto Insurance raised rates by 5 percent on Dec. 16, affecting 6,219 Nevadans. Also in December, Mercury Casualty Company raised rates 16.3 percent, affecting 13,470.

Acuity Insurance raised rates for 1,670 Nevadans by 9.5 percent on Jan. 2, according to the Division of Insurance. Additionally, they also raised rates for 400 policy holders by 8 percent on Jan. 2.

According to Insurance Business magazine, “relaxed alcohol laws and the high number of Las Vegas partygoers drive up auto insurance costs” in Nevada.

All insurers must go through the Nevada Division of Insurance when requesting a rate change; the actual division-approved rate is typically lower than the rate hike requested. This is due to the division’s mission to “protect the rights of Nevada consumers” and ensure “financial solvency of insurers.” The approved rates cannot be “excessive or discriminatory,” according to the division.

Should you take anything off your policy?

For people like Guillen with a clean driving record, it can be hard to shell out money without feeling the effects of insurance. However, according to personal injury attorney Meesha Moulton: drivers should actually be adding things to their policy, just in case.

“I will always have to kind of coach (my clients) and be like, ‘Hopefully you never find yourself in this situation again, but if you ever do, I want you to add a few different things to your policy, and one of them is the uninsured motorist and then the under insured motorist coverage,” said Moulton.

Uninsured motorist coverage covers motorist in case the person who’s responsible for the accident doesn’t have any insurance. Underinsured coverage steps in when the responsible party’s policy doesn’t have enough coverage to pay for the damages or injuries they caused.

Additionally, medical payment coverage can be added as another safeguard. Moulton says it’s worth it to pay the extra $20 a month, then “dealing with what could be thousands and thousands of dollars in accident fees.”

“With a lot of cities like Las Vegas, we’re seeing so many people move in, and with the increase in population also comes an increase in drivers and cars on the road,” said Meesha Moulton, a Las Vegas personal injury attorney. “Then there’s also this rise of medical costs as well.”

For people looking to save on insurance, there are options to raise your deductible and bundling policies, but it’s recommended to pay “that few extra dollars a month and just protecting yourself and protecting your assets, is well worth it,” she said.

Contact Emerson Drewes at [email protected]. Follow @EmersonDrewes on X.

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