Why Is Car Insurance So Expensive in Nevada?
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MoneyGeek analyzed why car insurance is more expensive for the average driver in Nevada. Our methodology defines an average driver as a 40-year-old with a full coverage policy and a clean record.
Car insurance in Nevada is $476 more per year than the national average rates. Individual factors like age, driving record and credit score determine the cost of a policy. Nevada’s car insurance rates are also affected by high urban population density and vehicle theft rates.
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Key Takeaways
Nevada’s high car insurance rates are due to high urban population density and vehicle theft rates.
Factors like your age, credit score, driving history, location, car’s model and insurer also affect rates.
Despite high costs, you can still save money on car insurance in several ways.
Why Nevada Car Insurance Rates Are So High
Nevada’s car insurance rates are high compared to the national average. Depending on your circumstances, you might have to pay even higher rates. The main reasons behind the high cost of car insurance in the state are high urban population density and vehicle theft rate.
High Urban Population Density
In Nevada, 94% of the population lives in urban areas. Living in a metropolitan area means you’re more likely to file a claim, as cities with more drivers on the road have an increased risk of car crashes. Insurance companies also charge higher rates to residents of urban centers due to the increased risk of vandalism and theft.
High Vehicle Theft Rate
MoneyGeek’s data shows that 365.6 cars per 100,000 people are stolen in Nevada. Because comprehensive insurance covers vehicle theft, stolen vehicles result in costlier claims for insurance companies.
Why Nevada Car Insurance Might Be Expensive for You
Nevada’s average car insurance rates are more expensive than the national average. Due to several factors, your insurance costs might be higher than average. These factors include your age, where you live, credit score, driving record, car model and insurer.
Where You Live
Where you live in the state affects your car insurance rates. In Reno, Nevada’s least expensive city for car insurance, a policy costs an average of $1,239 per year. The most expensive city is Las Vegas, with an annual average cost of $2,221. Depending on where you live in Nevada, your premiums could change by as much as $982.
Average Car Insurance Rates in Nevada: State & Cities
Location | Annual Premium |
|---|---|
Nevada’s State Average | $1,900 |
Henderson | $1,840 |
Las Vegas | $2,221 |
North Las Vegas | $2,194 |
Reno | $1,239 |
Sparks | $1,248 |
Insurance Company
Shopping around and comparing car insurance quotes from different companies can help you find the cheapest car insurance in Nevada. Looking for the best car insurance in Nevada means finding a company with a good balance of service quality and affordability. You can also use MoneyGeek’s tools to estimate your car insurance rates and find a company that provides the service quality you need.
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Age
Your age significantly impacts your car insurance premiums, as insurers consider it risky to insure drivers younger than 25. MoneyGeek’s data shows that it costs an average of $4,672 per year in Nevada to buy a policy for a 19-year-old driver, while the average cost of car insurance for a 40-year-old is $1,900 annually.
Average Car Insurance Rates by Age in Nevada
State | Average Driver (40-Year-Old) | 16-Year-Old | 25-Year-Old |
|---|---|---|---|
Nevada | $1,900 | $4,672 | $1,750 |
Driving Record
Having a clean driving record can help you save money on car insurance. On the other hand, you will have to pay higher premiums if you have driving violations. A policy for a driver with a speeding ticket costs an average of $2,355 per year, which is $455 more than someone with a clean record.
Average Car Insurance Rates by Driving Record in Nevada
State | No Violation | Speeding Ticket | Accident | DUI |
|---|---|---|---|---|
Nevada | $1,900 | $2,355 | $2,747 | $2,903 |
Credit Score
Insurers may charge you higher rates if you have a low credit score. MoneyGeek’s data shows that drivers with an excellent credit score pay an average of $379 less than drivers with good credit history in Nevada. Average costs can increase by $1,381 per year for a driver with poor credit versus one with a good credit rating.
Average Car Insurance Rates by Credit Score in Nevada
State | Excellent Credit Score | Fair Credit Score | Poor Credit Score |
|---|---|---|---|
Nevada | $1,669 | $2,394 | $3,430 |
Car’s Make and Build
Insurers consider your car’s make and model when determining your rates. For example, MoneyGeek found that the Toyota Camry, a best-selling sedan, averages $1,414 per year to insure. Car insurance for newer vehicles can be more expensive; for example, the Nissan GT-R — a high-value sports car — averages $3,096 annually for coverage. MoneyGeek’s auto insurance calculator can help you estimate policy costs based on your car’s model.
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How to Save on Car Insurance in Nevada
While the average cost of a car insurance policy in Nevada is higher than the national average, it’s possible to find a great deal. There are several methods for saving on your costs, including shopping around for quotes, bundling your policy, considering pay-per-mile insurance, finding and using discounts, increasing deductibles or dropping unnecessary coverage.
Shopping Around for Quotes
It’s wise to shop around and compare quotes from several companies to find a cheap policy that fits your needs. You can use MoneyGeek’s tool to get a quote estimate and compare policies.
Bundling
Bundling your auto and home insurance policy together can help you save on your premiums. Many insurers offer significant discounts for bundling.
Discounts
Insurance companies offer discounts on your car insurance premium based on your age or behavior. You may also take advantage of a telematics-based discount.
Increase Your Deductible
A car insurance deductible is the amount of money you pay out of pocket when you file a claim before the insurance covers costs. If you opt for a higher deductible, your insurance premium will be lower.
Pay-Per-Mile Insurance
Pay-per-mile insurance is one way of saving money if you don’t drive much. It’s best for drivers who don’t drive more than 1,200 miles in a year.
Drop Unnecessary Coverage
Experts say it’s better to drop comprehensive and collision coverage if your premiums are worth more than 10% of your vehicle’s cash value. However, be careful about underinsuring yourself.
Frequently Asked Questions
MoneyGeek answered the following frequently asked questions to help you understand why car insurance is expensive in Nevada.
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