Why did my car insurance rate go up after I moved to Las Vegas?
If you’ve recently moved to Las Vegas from elsewhere in the country, you may have noticed one disturbing fact: Your car insurance bill has just gone up. No, it’s not your imagination. The chances are good that your revised rate amounts to more than you’d pay elsewhere in Nevada and more than you’d pay nationwide.
Many people experience frustration. Some even feel that the insurance companies are out to get them, but few are just being greedy. Most have good reasons for raising their rates for Las Vegas residents. The commonest ones include:
- A large volume of traffic.
- A high accident rate.
- A serious auto theft problem.
- A larger-than-average number of DUI convictions.
- Recently adopted law enforcement regulations.
- National economic conditions.
The Crowded Streets of Vegas
More than a million people drive Las Vegas streets, and only some of them are local residents. Add in the steady stream of visitors from around the world and at least 10,000 workers who drive in every day, and the numbers rise even higher.
An Elevated Accident Rate
Recent statistics show that compared to the national average, a Las Vegas driver has a 21 percent higher chance of being involved in an accident. That equates to one accident per driver every eight years. Wandering tourists are another part of the problem. Unfamiliar with the city’s layout, they are often too busy taking in the sights to notice the traffic around them. When strolling the streets with your eyes on the scenery, it’s easy to become an accident statistic. Ongoing construction poses yet another danger to the city’s drivers. Whether you come from Las Vegas or are just passing through, the confusion caused by the widespread road and ramp closures is often the cause of many a subsequent crash.
When compared to other metropolitan areas with high rates of auto theft, Las Vegas takes top honors. Any car could be a potential target, but in recent years, the Toyota Corolla and full-size Ford pickup have won particular favor with local car thieves.
The very things that makes Las Vegas attractive to so many people could contribute to its higher auto insurance premiums. Much of the local frivolity centers around alcohol consumption, and with more than 8,000 DUI-related arrests a year, it should come as no surprise that more than 40 percent of the city’s automobile fatalities are substance-related. Statistics like these adversely affect everyone’s auto insurance rates.
Reduced Police Response
In March of 2014, Las Vegas enacted a law prohibiting police from responding to fender benders. While this does free up their time to attend to more-serious infractions, it also paves the way for insurance fraud. Some people will stage an accident to collect the payout, knowing that no police report will exist to refute their claim. Insurance companies respond to the risk by raising their rates.
In a shaky economy, insurance companies can find it difficult to balance their ratio of risk to reward. Faced with stagnant investment opportunities, many raise their rates to compensate for the shortfall. As the market regains its strength, the situation should improve for the policyholder as well.
When Car Insurance Rates Go Lower
Not everyone who moves to Las Vegas will see a rise in car insurance rates. Some may even go down, particularly if the driver takes proactive measures. You can often decrease your insurance rates if you:
- Raise your deductible.
- Drop collision or comprehensive on an older car.
- Maintain a stellar credit history.
- Learn and practice defensive driving.
- Ask about discounts for such pluses as low mileage, anti-theft equipment and a driving record free of accidents or moving violations.
Finally yet essentially, be sure to comparison shop for the best discounts. This is where All Kinds of Insurance can help. By shopping a variety of carriers, our experts can get you the greatest bang for your auto insurance buck, even if you do live in Las Vegas. Don’t let higher car insurance rates get you down. For the coverage you need at a price you don’t mind paying, give us a call today at 702-534-4697.