Shopping for insurance can pay off for drivers

Thursday, March 7, 1996 | 11:59 a.m.

CARSON CITY -- If you're retired military and live in Nevada, your best bet for low-cost auto insurance is USAA Casualty Insurance Co.

But if you're an average joe motorist, you should try State Farm or Nationwide.

This information and much more is contained in the latest issue of a comparison guide to buying car insurance, released Wednesday by state Insurance Commissioner Alice Molasky.

The guide shows that motorists can save thousands of dollars by shopping around for car insurance. And the savings are even greater for teenage drivers.

For instance, a 16-year-old boy in Las Vegas who is covered by his parents' policy, has a clean driving record, has completed driver education and drives 12,000 miles a year will find rates that range from $1,465 to $13,692 per year.

The lowest rate is offered by Nationwide Mutual Fire Insurance Co. while the high rate comes from Guaranty National Insurance Co.

If the same teen driver lived in Carson City, his rate would be $875 from Nationwide and $8,880 from Guaranty National.

Figures released earlier this year show that in 1994, Nevadans paid an average of $881 per year for insurance, ninth highest in the nation.

The comparison guide shows that teenage girls pay less than boys of the same age and with the same driving records.

Molasky said the 1995 Legislature recognized the importance of insurance education and required that driver education courses in high school include instruction on insurance coverages.

Molasky said besides price, consumers also should consider the level of service offered.

Premiums depend on the coverages selected, the driving record, the type of car and where a person lives.

For instance, the cost of coverage is higher in Las Vegas than in anyplace else in the state.

The book gives 18 scenarios of coverages involving motorists of different ages, driving records and numbers of miles driven yearly.

In 10 of the 18 categories, USAA Casualty offers the lowest price. But this company writes policies only for people in the military or retired from the military.

State Farm was second lowest in seven of the categories. Nationwide was a good buy for the young driver.

Guaranty National is the highest priced in offering coverage to teen drivers. Molasky said Guaranty is an insurer of high-risk motorists but she said she was surprised by the high rates charged to teen drivers.

Phoenix Indemnity Insurance is high in its policy costs to adult motorists. Phoenix led in seven of the 18 categories.

Free copies of the comparison guide are available at the state Insurance Division office at 2501 E. Sahara Ave. or by calling 486-4009.