Why is my insurance premium going up? I have never received a ticket nor been involved in an accident.

If there are tickets or accidents found on your driving record within the last three (3) years, your insurance company may view you as a higher risk driver and increase your premium accordingly. There could be several other reasons why your insurance premium is increasing:

1. Inflation: Over time, the cost of goods and services tend to increase due to inflation. This means that over time inflation has increased the amount a person would be paid by an insurance claim. Higher claim payouts directly affect future insurance premiums.
2. Changes in coverage: If you’ve made changes to your insurance policy, such as increasing your coverage limits or adding additional coverage, this can also lead to an increase in your premium. If your vehicle is leased or financed, policy changes may be requested by the third party to satisfy the requirements of your loan.
3. Industry trends: Insurance companies may adjust their rates based on industry trends, such as an increase in the number of claims filed in a particular area or a rise in the cost of repairs for certain types of vehicles.
4. Claim frequency in a specific company: Insurance works by creating a pool of people that pay insurance premiums to a company; These payments are directly used to pay out claims. When an insurance company pays more in claims than they take in for premium, the cost of insurance may go up for all policyholders with that company.

It’s important to review your policy and speak with an insurance agent to understand the specific reasons for the increase in your premium. You may be able to make changes to your policy or take steps to reduce your risk and lower your premium.

I moved to Nevada from another state. What are the minimum insurance limits required to drive in Nevada?

In the state of Nevada the minimum insurance requirements for motor vehicles are as follows:

1. $25,000 bodily injury liability coverage per person (BI)
2. $50,000 bodily injury liability coverage per accident (BI)
3. $20,000 property damage liability coverage per accident (PD)

Using the above limits as an example, insurance liability limits can typically displayed in these two ways: 25/50/20 or $25,000/$50,000/$20,000

This means that if you cause an accident, your insurance policy must provide at least $25,000 in coverage for each person injured, up to a maximum of $50,000 per accident, and $20,000 for property damage. It is very important to keep in mind these are the MINIMUM required amounts, therefore  these limits may not be sufficient to cover all the damages and injuries that may occur in a serious accident. The average vehicle on the road is worth more than $20,000 and associated costs can quickly add up in the event of an accident. 

Its also important to note that carrying the bare minimum, liability-only coverage will only pay for injury and damage to OTHER drivers, and not oneself. Adding comprehensive and collision coverages is how drivers add coverage to pay for their own vehicles (sometimes referred to as “full coverage”). More below:

What are the risks not having “full coverage” for my car insurance? 

Not carrying comprehensive and/or collision coverage (“full coverage”) for your car insurance can leave you exposed to several risks, including:

1. Liability risks: If you are involved in an accident that is your fault, and you don’t have enough insurance (or any insurance at all) you could be responsible for paying for the other party’s medical expenses and property damage out of your own pocket.
2. Damage to your own vehicle: If you ONLY have liability insurance, your own vehicle will not be covered in the event of an accident, theft, or vandalism.
3. Uninsured or underinsured motorist risks: If you are involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages, you could be left with significant out-of-pocket expenses.
4. Personal injury or other related risks: If you or your passengers are injured in an accident, you may not be fully covered for medical expenses and lost wages if you don’t have full coverage insurance.
5. Weather-related risks: If your vehicle is damaged due to a weather-related event, such as a hailstorm, flood, or hurricane, you may not be covered if you don’t have comprehensive coverage. Weather related incidents can be very common in Northern Nevada.

It’s important to note that while full coverage insurance can provide more protection, it may also be more expensive than liability-only insurance. It’s important to assess your own risks and budget and consult with an insurance professional to determine the best coverage for your needs.

I am a business owner. What type of insurance does my business need?

The type of insurance your business needs depends on several factors, including the nature of your business, the size of your business, the number of employees, and the risks associated with your business operations. Here are some common types of insurance that most businesses may need:

1. General Liability Insurance: This insurance covers your business for third-party claims of bodily injury, property damage, or advertising injury that may occur as a result of your business operations. It is the most common type of insurance carried by business owners.
2. Property Insurance: Coverage for business personal property or building coverage for owned spaces.
3. Workers’ Compensation Insurance provides protection for employees and is required in the state of Nevada for any business with employees.
4. Professional Liability Insurance: This insurance, also known as errors and omissions insurance, provides coverage for anyone offering professional services and advice that may result in financial loss or damages to clients.
5. Commercial Auto Insurance: Car insurance that covers vehicles owned or used by your business, including but not limited to: company cars, trucks, and other vehicles.
6. Business Interruption Insurance: This insurance provides coverage for lost income and expenses due to a covered event that interrupts your business operations, such as a natural disaster, fire, or other covered peril.

These are just a few examples of the types of insurance that your business may need. It’s important to assess your business’s unique risks and consult with an insurance professional to determine the best coverage for your business

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