Insurify released a report on August 11, which found that Nevada is the fourth most expensive state for car insurance in the nation, with car insurance costs predicted to increase by a total of 20% this year.
According to Insurify, the average cost of car insurance rose by 14% during the first six months of this year, leaving Americans paying an average of $2,329 for full coverage car insurance. In Nevada, drivers pay $3,271 for full coverage car insurance, making it the fourth most expensive state in the country behind Maryland, South Carolina, and New York. By the end of 2024, Insurify projected that Nevadans will be paying $3,531 for their car insurance.
A report released by RAND in July found that factors including a growing number of court filings and larger trial awards are contributing to insurance costs rising faster than overall inflation. RAND found that court filings in state courts increased by approximately 10% between 2010 and 2019. The study also found that there was an increase in the percentage of cases that reached a verdict in favor of the plaintiff during that time period, rising from 53% in 2010 to 64% in 2019. Additionally, inflation-adjusted trial awards during that time frame experienced a compound annual growth rate of 7.6%. "Insurers and others have argued that social inflation creates a feedback loop in which rising levels of tort compensation fuel expectations of financial windfalls among potential claimants and the attorneys who represent them, which, in turn, stimulates the filing of new claims and associated lawsuits," according to the study.
Excessive litigation is contributing to Nevada's expensive car insurance, according to a fact sheet from Nevadans for Fair Recovery (NFR), a political action committee (PAC). The PAC is backing a ballot initiative that would cap attorney contingency fees at 20%, meaning that plaintiffs would be guaranteed to keep 80% of their settlements or awards. By reducing the volume of excessive litigation in the state, NFR suggests that the contingency fee cap could lower the extra costs imposed on Nevada residents.
Insurify is a virtual insurance agency that uses artificial intelligence (AI) to provide quotes for consumers to allow them to compare insurance policies. According to its website, 10.4 million Americans have used Insurify’s services to find insurance coverage.