About 600,000 motorists across the state will be watching their rates rise in the near future.
Around one in every three state residents will be affected by the Nevada car insurance rate hikes coming soon. About 600,000 drivers will see a considerable 9 percent spike to their auto policy premiums this summer.
The state will be raising the minimum amount of bodily injury and property damage coverage.
As a result, Nevada car insurance rates will also be rising in order to reflect the higher coverage. This will become effective as of July 1, 2018. On average, it should mean about an additional $10 per month for policyholders with the minimum amount of bodily injury coverage. The base amount of bodily injury coverage is $15,000 per person and $30,000 per collision. The base amount of property damage coverage is $10,000 per collision.
These new rules were approved by state lawmakers in 2017. They have led to this year’s auto insurance rate increase.
The new regulation causing Nevada car insurance premiums to rise is called the 15/30/10.
It will continue to rise until it becomes $25,000, $50,000 and $20,000 respectively at which point it will be known as the 25/50/20.
It’s a recognition that the cost of vehicles have gone up, the cost of medical expenses have gone up,” explained Mark Wenzel, legislative advocate for Nevada plaintiffs’ attorneys and Reno lawyer. Wenzel supports the increases.
Certain policyholders may be facing far higher premiums spikes than others. Those who have been keeping only the bare minimum coverage or who have been underinsured could pay over $45 per month more. This, according to the results of a Nevada Division of Insurance survey. That survey involved the participation of seven auto insurance companies which remained unnamed.
Yeraldin Deavila, spokesperson for the division, explained that insurance companies will be required to raise the minimum per person coverage to $25,000 and the per accident coverage to $50,000. As Nevada car insurance companies will need to provide significantly more coverage, it is to be expected that this will be reflected in the premiums. About three quarters of all Nevada drivers will see rate increases of some amount.