Nevada insurance premiums will increase by at least 20 percent in July 2018
LAS VEGAS (KSNV) —
Starting July 1, the minimum amount of liability insurance required for Nevada drivers will increase, meaning insurance rates will rise as well.
Insurance agents say drivers can expect to see at least a 20 percent increase in their premiums.
And some drivers who have to renew their policies in the next couple of months will see the increase early.
For more than 30 years, Nevada drivers have been required to carry auto liability insurance with a minimum amount of 15-30-10. That's $15,000 in bodily injury per person, $30,000 in bodily injury per accident and $10,000 in property damage.
Starting this summer, the requirement nearly doubles to 25-50-20. That’s $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage.
Alondra Varela is an underwriter with Express Auto Insurance in Las Vegas, and she says this will affect every Nevada resident. Alondra says the increase is likely a result of the continuous hustle and bustle of the valley area.
"Las Vegas alone is a 24-hour city, so you're already talking twice as much risk," Alondra said. "We have tourists. We have casinos. A lot of people drink and then drive, so we have a lot of risk in the state."
Anthony Semmonich is new to the Vegas area, and he says his premium has already tripled under the new law.
"I think it's unfair for the people who still get paid $8.25 an hour, and can't afford to get their insurance jacked up that high,” said Semmonich.
Many drivers we spoke to agree, saying that with the price of vehicle registration already so high, a price hike on insurance doesn't seem fair.
"We're here to make a living, so if prices are being raised, something should be raised on our ends -- a pay raise," said Nevada driver Jovonta Meyers.
There are penalties if drivers don't update their policies. One of the penalties allows the DMV to cancel your vehicle registration until you purchase the mandatory minimum.