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As many as 600,000 people – or about one in three Nevada motorists – could be looking at higher auto insurance rates this summer, officials say.
The 9% increase, coming into effect July 01, could amount to about $10 more monthly for average policyholders who have minimum bodily coverage of $15,000 per person and $30,000 per accident, plus a basic $10,000 per accident in property damage coverage. The average increases were based on figures provided to state legislators when they approved rises last year.
"It’s a recognition that the cost of vehicles has gone up, the cost of medical expenses has gone up," Mark Wenzel, Reno-based lawyer and legislative advocate for state plaintiffs’ attorneys who supported the increase, told The Associated Press.
A rate survey of seven unidentified companies, by the Nevada Division of Insurance for the state legislature, found that some policyholders could see rate increases of over $45 a month if they also maintain minimum coverage for uninsured or underinsured motorists.
The additional rate hike is due to insurers increasing the basic uninsured/underinsured motorist coverage to the minimum $25,000 per person and $50,000 per accident, explained Nevada Division of Insurance spokeswoman Yeraldin Deavila.
In a statement, state insurance commissioner Barbara Richardson said that several companies may already be factoring the increase into renewal bills.
State Department of Motor Vehicles spokesman Kevin Malone said that Nevada has 1.9 million drivers and 2.5 million registered vehicles. He also noted that, based on estimates, the number of uninsured motorists in the state are around 20% of all drivers.
