Legislators Question Why Nevada Car Insurance Costs So Much
While the national car insurance premium average cost dropped 6% in 2025, Nevada costs increased. Full-coverage in Nevada averages around $2,897 annually, keeping the state 10th highest nationwide and far above the national average of $2,144.
At a recent Interim Committee on Commerce and Labor hearing, Chair Assemblymember Elaine Marzola (D) questioned why insurers raise rates while posting billions in profits. State Senator Edgar Flores (D) added that there is widespread constituent frustration with rates continuing to rise.
Nevada Insurance Commissioner Ned Gaines said the nationwide premium increases have been amplified locally, especially in Southern Nevada, due to riskier driving behavior causing more accidents.
Nevada's high car insurance costs stem from its second-highest urbanization rate in the country (94.1% of population in urban areas, per U.S. Census), heavy traffic in Las Vegas and Reno, third-highest vehicle theft rate, and fifth-highest DUI arrest rate. These drive frequent, costly claims. Nevada faces even steeper increases from excessive litigation and frivolous lawsuits, adding over $1,200 in hidden "tort taxes" per household annually.
A representative of the National Council of Insurance Legislators suggested that the state consider more streamlined rate filings for new insurance carriers, stronger enforcement of insurance laws, rate transparency, better road design, and reductions in theft and DUIs.
No concrete policy solutions emerged from the hearing. Nevada lawmakers plan further review before the next legislative session. Other states have pursued reforms to lower costs; Florida’s tort reform reduced auto insurance rates, saving drivers hundreds annually in many cases.
Federally, Senate leaders are expected to unveil a new highway bill in March 2026. House Transportation Committee leaders are focused on Highway Trust Fund solvency, autonomous vehicle policies, and potentially reforms to curb lawsuit abuse in auto insurance.
National experts forecast a 1% rise in car insurance rates in 2026.
