North Vegas Times

Nevada residents paid more for car insurance in 2021 as a result of the continuing rise of inflation leading to higher insurance costs.

In the year 2021, the average annual cost for minimum coverage car insurance in the state of Nevada was $836, while the average annual cost for full coverage was $1,903, according to online education resource Coverage. Bankrate reported similar numbers with the average annual cost for minimum coverage car insurance in the state of Nevada is $860, while the average annual cost for full coverage is $2,245.

The Wall Street Journal recently announced the adjustments car insurers are making in response to the country’s rising inflation rates. Industry executives and analysts report that many car insurance companies are raising premiums 6%-8% or by double digits.

"I've seen premium increases in the range of 5%, 10% and even 15%," Doug Heller, insurance expert with Consumer Federation of America said, according to Marketplace. "That throws a huge wrench in the budget of people who are really just struggling to get by."

Allstate, a home and auto insurer, raised rates by an average of 7.1% in 25 states, according to The Wall Street Journal. The company also confirmed that more increases are coming.

Some consumer activists are against the increases with the argument that carriers recorded profits during the COVID-19 lockdowns. Carriers argue that they temporarily reduced programs and other premiums in response.

Rising rates of inflation drive rising rates of car insurance. The U.S. Bureau of Labor Statistics released the consumer price index data on Jan. 12 for the month of December 2021. The data showed a 7% annual increase, which is the largest increase in 40 years, since 1982.

The consumer price index is a measure of inflation, which takes into account the cost of dozens of common consumer goods, according to CNBC News.

The index also rose 0.5% from November 2021, signaling that rising inflation is a trend and has continued to grow on a month-to-month basis.