News 3 Las Vegas Exclusive: Ash Watkins Explains Why Nevada’s Car Ownership & Insurance Rates Cost So Much

Nevada is the most expensive state for vehicle ownership, in large part because of the cost of insurance.

According to a recent study, Nevada is the most expensive state for vehicle ownership, with average annual expenses costing Nevadans a whopping $6,119 a year. Several factors contribute to this, including:

• High insurance costs – average car insurance premiums in NV = $3,439, the highest in the country.
• High fuel costs – NV has some of the highest fuel costs in the country with an average of $1,937 annually
• Average annualized sales tax – $345
• Average annual repair costs – $398

When cutting costs is important, so too is making sure you have the proper insurance coverage. Ash breaks down the nuances of insurance policies, what every Nevada driver must have in their policy, where they might be able to save, and what you need to know BEFORE a car crash.

Q: What does Nevada state law require for auto insurance, and what do you really need?

A: Nevada requires only liability insurance, which covers other people if you cause an accident — but it does NOT cover you or your car.

Nevada’s minimum liability limits:

• $25,000 per person for bodily injury
• $50,000 per accident for bodily injury
• $20,000 for property damage

Generally, these limits are not enough to cover serious accidents, medical expenses, or total vehicle loss.

What is the difference between liability and full coverage?

• Liability is coverage for others if you cause an accident and generally covers two things: bodily injury & property damage.
• Full coverage is liability coverage plus coverage for you, the insured.

What insurance coverage can drivers not afford to skip?

For injuries:

• Uninsured/Underinsured Motorist Coverage (UM/UIM): Protects you if the other driver has no insurance (or not enough). Given how many Nevadans drive without coverage, this is essential.
  • How many cars on the road do you see without a license plate? If they are not up to date on their vehicle registration, odds are they are also not properly insured.
• Medical Payments Coverage (MedPay): Helps pay for your medical bills regardless of who’s at fault.

For property damage:

• Collision Coverage: Pays for repairs to your car if you’re in an accident, so you don’t have to wait for the other driver’s insurance.
  • This is important because if you get into an accident, rather than wait for the other person’s insurance (assuming they even have insurance) to accept responsibility for the accident and related repairs, your insurance will immediately step up to cover the damage and then they will seek reimbursement from the at-fault driver’s insurance later on. This gets your vehicle back on the road quicker.
• Comprehensive Coverage: Covers damages from theft, vandalism, weather, and animals—things out of your control.

Where might drivers be able to cut costs?

• Roadside assistance: Some insurance policies charge extra for it, but you may already have it through AAA, your car manufacturer, or even your credit card.
• Rental car coverage: If you have another vehicle or access to a temporary car, this add-on may not be necessary.
• Glass coverage: If your deductible is high, you may be paying extra for some coverage that won’t save you much money in the long run.