Car insurance prices are increasing at an alarming rate, and customers are not pleased. According to Fox News, hundreds of thousands of drivers are expected to see a rate hike of nearly 20% this year.
Nevada, New York Among States With Expensive Car Insurance
New York, Nevada, Florida, Delaware, and Louisiana topped the list of states with the most costly auto insurance last year, according to statistics from Insurify, an online tool for comparing policies.
Nevada had an average annual cost of nearly $3,000, which was the second most costly car insurance in the United States last year. Many people in Nevada will be even more upset to hear that car insurance rates are increasing again this year.
Contributing Factors on the Rise of Car Insurance Rates
The Nevada Division of Insurance has identified two factors contributing to the recent price increases. First, Division of Insurance Deputy Commissioner Todd Rich told Fox News that the prices of new and secondhand cars rose during the pandemic and have not come down.
"The second is the complexity of new vehicles. So when there is an auto accident and vehicles need to be repaired, the cost of those repairs have gone up significantly," Rich added.
In Nevada, the increase in vehicle insurance prices needs approval by the state's Division of Insurance. The agency said it prioritizes to protect consumers, but it often approves "reasonable" increased rates to prevent carriers from leaving the state.
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