Nevada legislators are worried that a bill that would
boost the state’s minimum vehicle insurance level will force more drivers to go
uninsured due to higher premiums.
The worries came to light in a recent Assembly
Transportation Committee debate on Assembly Bill 120. The bill was proposed by
Assemblyman William Horne, who was injured in an accident in which the other
driver had only the minimum liability insurance required by law.
Horne (D-Las Vegas) said the current minimum liability
levels don’t provide enough money to cover medical and vehicle repair costs
suffered by other motorists injured in an accident.
According to the Las Vegas Review-Journal, many insurance industry lobbyists testified
against the bill, saying more than 40 percent of Nevada drivers now have
liability coverage that’s less than the bill’s proposed minimum. A study by the
Property Casualty Insurers Association of America calculated the increase for
those drivers in Las Vegas at $122 to $290 a year.
The insurance lobbyists also testified that if the bill
is approved, the number of uninsured motorists, now 15 percent, would increase
because poor motorists could not afford the higher premiums.
An unusually
high number of uninsured motorists is one reason that has been recently cited
by the collision repair industry for contributing to the declining pool of
vehicle repairs. The toughest recession since the Great Depression has led many
drivers to reduce their coverage or outright drop it altogether.
More information:
Read the full story in the Las Vegas Review-Journal
