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Could the New Law This Year Change Your Car Insurance?

Last week, Attorney Justin Watkins of Battle Born Injury Lawyers appeared on KTNV Morning Blend to discuss Nevada's new insurance law. You can find the segment here.

In May 2017, Nevada Gov. Brian Sandoval signed into law an increase in the required liability coverage. Starting July 2018, the minimum coverage for injury or death of one individual in a car accident will rise from $15,000 - $30,000 to $25,000 - $50,000. The minimum for injury or death of two-plus people and the minimum for property damage will all increase as well.

Higher minimums of insurance aim to help make sure that customers have the ability to cover all the expenses related to an accident. The current rates have been in place for five decades, since the 1960s. In relation to today's economic standing, $15,000 in the 1960s would be the equivalent of $250,000 today.

Will My Insurance Rates Increase?

Not necessarily. In fact, Pennsylvania—the last state that increased their insurance minimum rates—experienced a six percent decrease in rates.

For example, say you get involved in a car accident that was your fault. Obviously, your rates will increase. But if you get into an accident that is not your fault and the other person does not have enough insurance to cover the damages, then you would make an uninsured motorist (UM) claim. In the event of a UM claim, your insurance rates are not allowed to increase. Instead, that loss is spread out across all rate holders. So the less UM claims people make, the lower insurance rates will be for everyone.

How to Avoid Increased Insurance Premiums

Ultimately, the new law ensures that more drivers will have the proper amount of insurance coverage in the event of a crash. However, many people have received letters saying that their insurance rates will increase as soon as this law takes effect.

Keep in mind, just because the insurance company tells you that their rates will rise, doesn't mean you have to believe it. Most insurance holders tend to buy into a plan, put it on auto debit, sit back, and never look at it again. If this is the case for your situation, you are asking to get taken advantage of by the insurer.

If you want to get the most coverage for the least amount of money, it is wise to shop around for new rates as soon as your current insurance plan is nearing its end. There are many instances where one company is more expensive, but then their rates become less costly a year or two down the road.

If you have been injured in a car accident in Nevada, contact us today at (702) 570-9000 for a free consultation!