Auto insurance rates continue to skyrocket with no immediate signs of relief
Hundreds of thousands of drivers are slated to see an almost 20% increase in their rates this year
Auto insurance rates skyrocket
Nevada ranked the second highest auto insurance rates in the country, according to Insurify.
Car insurance prices are skyrocketing without any immediate signs of relief — and customers are not happy about it.
Nevada had the second-most expensive car insurance last year, with an average annual cost of nearly $3,000, according to the insurance comparison site Insurify.
Unfortunately, for many in Nevada, auto insurance prices are about to get even higher this year.
Hundreds of thousands of drivers are slated to see an almost 20% increase in their rates.
CAR INSURANCE RATES IN 2024 JUMP 26% ACROSS THE US, REPORT SAYS
Robert Diaz's rates have shot up to $440. (Sunny Tsai / Fox News)
Robert Diaz, who has been a State Farm customer for more than 14 years, said his car insurance has jumped nearly $200 in the last two years.
"We got no notice. None. It's just like a Christmas present," said Diaz.
Only this is the kind of present nobody wants.
SURGING AUTO INSURANCE COSTS ARE FUELING HIGHER INFLATION
"Pretty ticked off. I got on the phone within seconds," Diaz continued. "I got higher coverage because of the drivers out there, and I get penalized for protecting myself and protecting anybody else if they were in an accident with me. So, instead of getting rewarded for that, I get penalized for that. My rates go up."
And he says shopping around for other companies isn’t an option, despite his perfect driving record.
Robert Diaz has been a customer of State Farm's for more than 14 years. (Sunny Tsai / Fox News)
"I try to get other companies to go ahead and let me come over, but the thing is, they don't want to start me off with a good rate. They always tell you, oh yeah, come over to us, and we’ll save you this and that, but it’s not the situation. In our situation, we tried it, but my $440 will probably turn into $570, $600 with somebody else. They really want your business, but because you're not with them, they're not familiar with your driving habits. They're not going to give you a break. And that's ridiculous. Your own company has a monopoly on you because they know if you try to go somewhere else, you're not going to go because the rates are going to be way more," said Diaz.
THESE TWO FACTORS COULD BE DRIVING YOUR CAR INSURANCE COSTS UP
New York had the most expensive car insurance last year, followed by Nevada, Florida, Delaware, and Louisiana, according to Insurify.
The Nevada Division of Insurance says there are a couple of reasons prices have been rising.
"The first I would say is the cost of new and used vehicles. During the pandemic, they shot up consistently and really haven't come down. The second is the complexity of new vehicles. So when there is an auto accident and vehicles need to be repaired, the cost of those repairs have gone up significantly," said the Division of Insurance Deputy Commissioner Todd Rich.
New York had the most expensive car insurance last year, followed by Nevada, Florida, Delaware, and Louisiana, according to Insurify. (Sunny Tsai / Fox News)
Nevada’s Division of Insurance has to approve all car insurance increases. This year’s price hikes are unprecedented.
"A lot of the large carriers are submitting a rate increase over the last couple of years or before, as I mentioned, you might get one every three years. Now we're getting one probably every annual year. Because of the losses that they're taking on these auto rates," said Rich.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The DOI says they want to make sure they protect the consumers, but they will also usually approve reasonable increased rates so that the carriers won’t leave the state.