Two major auto insurers are raising rates starting in late May, affecting almost 150,000 Nevadans.

Allstate and CSAA, a AAA insurer, have been approved for rates changes by the Nevada Division of Insurance.

Allstate Fire and Casualty Insurance Company was approved for an 8.6 percent increase for its private auto insurance rates, affecting 82,665 Nevadans. It will go into effect on May 26.

This is the second time Allstate has raised its rates within the past year. Previously, the company raised its rates by 10.8 percent on Oct. 28, which affected 94,804 people.

CSAA General Insurance Company was approved for a 12.64 percent increase to its private auto insurance policies, affecting 65,608 Nevadans. It will go into effect on July 1.

The last time CSAA raised its rates was July, with a 8.052 percent increase, affecting 58,753 people.

According to a study published by Bankrate on May 1, Nevada has the fourth highest annual rate for full coverage at $3,575 and the sixth highest for average annual minimum cost at $1,067.

All insurers must go through the Nevada Division of Insurance when requesting a rate change; the actual division-approved rate is typically lower than the rate hike requested. This is due to the division’s mission to “protect the rights of Nevada consumers” and ensure “financial solvency of insurers.” The approved rates cannot be “excessive or discriminatory,” according to the division.

Reason for rate changes

Cost increases are influenced by rising car and repair expenses, insurance fraud, litigation, poor driving habits and the increase in Las Vegas’ population, according to the Division of Insurance.

“Automotive insurance rate increases are a national trend and issue,” the division said in a statement. “Recent increases can also be attributed to losses incurred by property and casualty carriers operating in Nevada.”

Michael DeLong, research and advocacy associate at Consumer Federation of America, said insurers are using non-driving factors to “charge people higher premiums.” One of the most influential factors being credit score, he said.

“If you have a poor credit, it actually turns out you can pay hundreds or even thousands of dollars more in auto insurance premiums,” said DeLong. “You can pay one penalty because you only graduated from high school. You can pay another penalty because you work as a waiter instead of, say, a doctor or an investment banker.”

Calculating premiums based on credit score was temporarily paused during the COVID-19 pandemic, but has since been resumed in Nevada.

According to DeLong, there is no relief in sight, unless more consumer protections are put in place. Even with the DOI as a guardrail for consumers, he urges consumers to file complaints on the DOI website and reach out to state legislators if they suspect price gouging.

“In the meantime, we think that unless there are stronger consumer protections, it’s going to be pretty difficult,” said DeLong. “Auto insurance costs are likely to keep going up, unfortunately.”

Ways to keep insurance costs low, according to Delong, are:

— Improving your credit score

— Shop around for one to two hours

— Don’t feel loyal to one company

— Try various driving discounts (i.e. going paperless, military and teacher discounts)

— Pay your auto insurance in full, rather than monthly

Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes.