Many Nevadans know car insurance rates in the state are high, but fewer understand why they continue to climb or whether anything can be done to stop the increases.

Car insurance rates in Nevada are expected to jump by nearly 6.5% in the new year, the second-largest increase in the nation, according to a new study from LendingTree.

That increase comes on top of already steep hikes in recent years. Erin Breen with UNLV’s Transportation Research Center said the cumulative impact is significant.

“And that’s on top of a much larger increase last year, so that in reality, between 2024 and 2025, insurance rates in Nevada will rise some 20%,” Breen said.

According to the study, Nevada already has the highest average car insurance rates in the country. Drivers pay about $355 a month on average, which is roughly 61% higher than the national average.

Residents say the rising costs have been relentless.

“Every year it’s increased. Every year I pay more and more and more,” said Curtis, a Nevada resident. “I don’t know what happened.”

Curtis said the jump in premiums has hit his wallet hard.

“Before I paid for that one, maybe $150. And now, $420,” he said. “Four hundred and twenty dollars when it’s used for two cars.”

Miguel, another Nevada resident, said he pays $350 a month to insure four vehicles.

“It’s high, man,” Miguel said.

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When asked why he thinks rates continue to rise, Miguel pointed to the number of crashes on Nevada roadways.

“There are many accidents, many accidents,” he said.

Breen said crashes do play a role, but they are not the whole picture. She said Nevada’s high number of uninsured and underinsured drivers also contributes to rising premiums.

“One of the reasons that our rates are high is because we do have a high number of people who are either uninsured or underinsured,” Breen said.

As a result, insurance companies often pass those costs along to drivers who do carry coverage.

“So what winds up happening is the people who do have insurance, their companies wind up having to pick up the tab for that,” she said.

Breen added that the rising cost of claims is another factor, as modern vehicles are becoming more expensive to repair.

Despite repeated discussions at the state level, Breen said lawmakers have limited options to bring rates down.

“Being in on those hearings year after year after year, when legislators are trying to come up with ways to reduce insurance,” she said, “the insurance companies have not been able to give them a tangible, ‘Here’s why your insurance rates will drop and here’s how much.’”

For drivers like Curtis, the lack of solutions is frustrating.

“Now insurance say increase, increase, increase,” he said. “You can do nothing. Only change. That’s it.”

Breen said drivers can help protect themselves by staying safe and vigilant on the roads. She added that if future laws are passed to improve roadway safety, Nevada could eventually see insurance rates move closer to the national average.