Online Auto Insurance News

After barely scraping by with enough votes from the state assembly last month and a key committee this month, a proposal to set up a low-cost auto insurance pilot program that would help low-income Nevadans died in the legislature on Monday.

The bill became defunct upon reaching its 110th day in the legislature without receiving a vote from the full senate. By Nevada law, all legislation must receive a final vote from both houses by that deadline, or it falls by the wayside.

Supporters of the proposal had aimed at setting up a mechanism for drivers in the state who have trouble affording their premiums.

If applicants to the program had a household income not larger than 250 percent of the federal poverty level and met certain requirements for driving history and vehicle type, those eligible would have been matched up through the program with a policy from a private insurer.

Rates would have been set by the commissioner of insurance, and the levels of protection provided would actually have been lower than the state-set minimum standards for coverage, but users would still meet the state’s mandatory coverage mandate.

Supporters of the legislation say that many of their constituents need such a program in order to stay in compliance with Nevada’s compulsory insurance law in times of financial hardship.

Opponents of the bill mostly took issues with the 50 cent fee that would be tacked on to every auto policy issued in the state, which would go toward funding the program. They also said that a nearly identical program that helps low-income families get cheap insurance in California was a failure not worth repeating in Nevada, even though that program has been in place for 10 years and recently got renewed for another five.