Auto insurance premiums in Nevada have again increased, with six major insurers, including Allstate and Farmers, raising rates by at least 10% for private vehicles in October.
Nevada residents, already facing some of the highest auto insurance rates in the country, are now paying an average of $3,549 annually for full coverage—nearly 5% of a household's annual income.
While inflation, rising repair costs, and a spike in accidents are contributing factors, critics say the state’s legal environment, particularly the influence of trial lawyers, is playing a significant role in driving up costs.
Nevada ranks fourth in the U.S. for the highest auto insurance rates. According to the American Tort Reform Association (ATRA), the state's rising premiums are linked to its increasingly litigious climate.
Two recent reports from ATRA reveal how trial lawyers are using financial influence to shape Nevada’s political and legal landscape, contributing to higher insurance costs for residents.
In 2023, personal injury law firms spent $137.2 million on over 1.6 million legal services ads in Nevada.
“Trial lawyers continue to pump significant money into these ad buys because, armed with more clients, they can boost settlements and payouts when they go after large corporations, ultimately raking in larger contingency fees for themselves,” ATRA President Tiger Joyce said in a press release. “Then, their strategic campaign investments serve to sway the outcomes of these legal battles.”
These advertisements primarily target auto, motorcycle, and truck accident claims.
The ad campaigns are part of a broader strategy to increase the volume of personal injury claims, which, in turn, leads to higher settlements and increased insurance costs.
ATRA also points to a connection between political donations and advertising spending, showing how trial lawyers use financial resources to influence both public perception and Nevada's judicial system.
Since 2017, top plaintiffs' law firms in Nevada have contributed more than $4.56 million to political campaigns, largely supporting candidates for judicial positions. Notable donors, including firms like Richard Harris Law and Claggett & Sykes, have directed contributions to candidates for state office and judgeships, many of whom are trial lawyers themselves.
ATRA views this political spending as an effort to influence the legal system in favor of larger settlements and higher payouts in personal injury cases, which results in higher premiums for residents.
According to ATRA, the state’s legal climate has led to excessive tort costs, which add more than $1,100 annually to Nevada residents’ insurance premiums.
ATRA also estimates the legal system causes the loss of more than 31,000 jobs annually in the state.
The association is calling for greater transparency in legal advertising and political donations, arguing that more accountability is needed to prevent excessive litigation from driving up insurance costs.