Auto insurance rises with economy

Lots of factors involved in auto premium hikes

The routine became so familiar to Las Vegas Valley local Ted McGrath that every time he opened his insurance bill, he asked the same question. “What surprise am I going to get this month?” said McGrath, 62.

The last monthly bill he paid with Farmers Insurance was $235 for November 2015. He had never filed a claim. He had every discount possible. Yet whenever he asked a representative about his rate hikes, he never got a straight answer, he said.

McGrath’s monthly bill made him among Nevada’s higher payers. The average annual price of car insurance in Nevada was about $970 for 2014, the latest year available, according to the Insurance Information Institute. That’s about 7 percent higher than the average rate for 2011. More people, more driving and the cost of health care are parts of the reason why car insurance bills have increased. Higher rates nationwide The whole country has seen higher rates, said Michael Geeser, president of the Nevada Insurance Council, a nonprofit representative of Nevada’s property and casualty insurance industry. One reason: As the economy has improved, more people are willing and able to spend on new cars and travel more.

“The economy picks up, more people are driving, gas prices go up, insurance rates go up,” Geeser said. “It goes hand in hand. You take the good with the bad.”

Nevada has the 12th-highest average premium in the nation, but the state has ranked higher in the past, he said.

Accidents nationwide have gone down, but the cost of an insurance claim has increased, mostly due to the cost of health care and the cost of lawsuits related to car crashes.

In Nevada, a penalty for failing to have auto insurance has made drivers more diligent about keeping insurance updated, Geeser said. Fees and fines cost at least $251 after the first day of lapsed coverage. State a decision-maker

In May, Nevada Gov. Brian Sandoval signed into law an increase in the required liability coverage for drivers. Starting July 1, 2018, the minimum coverage for injury or death of