Why Is Car Insurance So Expensive in Las Vegas?

Why Is Car Insurance So Expensive in Las Vegas?

Last Updated on July 30, 2022 by rida

Across the state of Nevada, drivers pay more for auto insurance than in some other states. The average driver pays around $1,800 per year for full coverage auto insurance, which is about 26 percent more than the U.S. average. Car insurance rates in Nevada can be expensive based on several factors. A driver’s specific location within the state, such as in the city of Las Vegas, can have a major impact on the premium. As Las Vegas is one of the major tourist cities in the country, many insurance companies see this as a high risk for theft, vandalism, or other types of damage. As a result, policy rates might be slightly higher in Las Vegas than in other parts of Nevada.

So, why is car insurance so expensive in Las Vegas? As discussed, Las Vegas is a busy city that can have more than one million drivers on the road at any time. In 2019, over 330 traffic fatalities were reported in Nevada, with the majority of those taking place in Las Vegas. In addition to this, the city of Las Vegas ranks high on the list of areas with higher instances of auto theft. Considering all of these factors, insurance companies see drivers and vehicles in the city as having higher risks.

Like other states, however, insurance companies providing coverage in Nevada look at various factors such as driving record, vehicle, and age to determine premium rates. Based on factors other than just location, a Nevada resident living in Las Vegas or another area might pay more or less than the state average. However, the good news is that there are some ways for you to save on insurance, even if you live in Las Vegas.

Shop Around

Before you begin your search for insurance coverage in Nevada, there are some things that you should consider. All drivers in Nevada must purchase a minimum amount of liability and personal injury coverage to legally operate a vehicle. This coverage will pay for the other driver and vehicle should you cause an accident. However, if you are at fault for an accident, it will not cover you or your vehicle. As a result, many drivers purchase additional collisions and comprehensive coverage to protect them no matter who is at fault. Additionally, this insurance will protect those living in Las Vegas who might experience theft or vandalism to their car.

As discussed, car insurance rates in Nevada can be expensive. To secure the best rates and coverages, it will be beneficial to shop around. Using a comparison tool will allow you to locate the cheapest car insurer with the best plan for your needs. Shopping around for auto insurance rates will give you the best shot at securing a lower insurance rate and will allow you to explore all of your options, including additional coverages.

Drive Safely

Drive Safely

Like many other states, Nevada operates on a driver’s license point system that assigns demerit points to your driving record based on traffic offenses and accidents. When Nevada drivers incur points against their license, they will experience an increase in annual premium amounts. To ensure that you get the lowest rate for auto insurance, you will want to maintain your status as a good driver with the state of Nevada. Many insurance companies offer discounts and rate reductions for having and maintaining a clean driving record.

As a driver in Nevada, you might end up paying more for auto insurance than in other parts of the country. Las Vegas tends to drive up these rates due to traffic incidents and vehicle damage claims in the city. However, if you shop around and maintain a clean driving record, you can secure lower rates in Nevada.