Auto Insurance In Nevada: What You Need To Know

Yes, auto insurance is a legal requirement in Nevada. All drivers must have liability insurance, which covers the cost of damage to another person or their property in the event of an accident caused by the insured. The minimum coverage is $25,000 of bodily injury coverage per person and $50,000 per accident, with $20,000 of property damage coverage.

Minimum insurance requirements

In Nevada, drivers are required by law to have auto insurance. The minimum amount of auto insurance coverage in Nevada is $25,000 per person for bodily injury, with a total maximum of $50,000 per incident, and $20,000 for damage to another person's property. This is often referred to as '25/50/20' coverage.

The minimum insurance requirements in Nevada include two types of liability coverage: property damage and bodily injury. Property damage coverage safeguards your assets if you are found legally responsible for a covered accident, including certain damage you may cause to the property or vehicle of another party. Bodily injury coverage safeguards your assets if you are found legally responsible for a covered accident, including certain expenses associated with bodily harm sustained by the other parties. This includes family members who live with you, even if you are not in the car when the accident happens.

Before July 2018, the minimum coverage requirements in Nevada were lower, at $15,000 per person for bodily injury and $30,000 per accident.

Optional insurance coverages

While there are certain mandatory insurance requirements in Nevada, there are also optional insurance coverages that drivers can choose to purchase for enhanced protection. These optional coverages are important because they provide additional financial security in the event of an accident, theft, or other types of vehicle-related incidents. Here is a detailed overview of the optional insurance coverages available in Nevada:

Collision Coverage:

Collision coverage is an optional insurance coverage that protects your vehicle in the event of a collision, regardless of who is at fault. It provides financial assistance for repairing the damage to your vehicle or offers a monetary payment to compensate for your loss. This type of coverage is particularly useful if you are involved in an accident and need to repair or replace your car. The coverage will pay for the repairs after you meet your deductible. The higher your deductible, the lower your insurance cost will be, and vice versa.

Comprehensive Coverage:

Comprehensive coverage is another optional insurance option that safeguards your vehicle against damages caused by incidents other than collisions. This includes protection against theft, fire, wind damage, falling objects, floods, vandalism, and more. For instance, if your car is damaged by falling objects during a storm or is stolen, comprehensive coverage will help cover the costs of repairs or replacement. Like collision coverage, comprehensive coverage also has a deductible that impacts the overall cost of your insurance.

Uninsured/Underinsured Motorist Coverage (UM/UIM):

This optional coverage is designed to protect you and your passengers financially in the event of an accident caused by an uninsured or underinsured driver. If the at-fault driver does not have sufficient insurance to cover your medical expenses and losses, this coverage steps in to pay for the medical costs of you and your passengers. This coverage is crucial in ensuring that you are not left with hefty medical bills if involved in an accident with an uninsured or underinsured driver.

Medical Payments Coverage (MedPay):

Medical Payments coverage, often referred to as MedPay, is an optional insurance coverage that takes care of medical expenses for you and your passengers, regardless of who is at fault in an accident. It also covers medical treatment if you are a pedestrian who is struck by a moving vehicle. MedPay ensures that you and your passengers can receive the necessary medical attention without worrying about the financial burden. This coverage is especially valuable if you frequently transport passengers or live in an area with a high risk of pedestrian accidents.

Rental Reimbursement Coverage:

Rental reimbursement coverage is an optional add-on that covers the cost of a rental car while your vehicle is being repaired after a covered incident. It is important to note that this coverage does not include fuel, insurance, or other rental extras. However, it can provide significant financial relief by covering the cost of a temporary rental vehicle during the repair process.

Towing and Labor Coverage:

Towing and labor coverage is an optional insurance add-on that covers the cost of towing and basic roadside assistance labor at the site of your vehicle's breakdown. While it does not include more extensive repairs needed at a garage, it can provide peace of mind and financial assistance during unexpected breakdowns or emergencies.

Custom Parts and Equipment Coverage:

For vehicles with custom parts or equipment, this optional coverage safeguards aftermarket enhancements like custom wheels, stereo systems, or other modifications. It is important to note that this coverage only applies to custom parts and does not include the original parts that came with your vehicle.

Accidental Death Coverage:

Accidental death coverage provides a payout if you or a passenger dies or experiences certain injuries in a car accident. This coverage is designed to offer financial support to the affected individuals or their families in the event of a tragic accident. However, it is important to note that it does not cover non-accidental deaths or injuries.

Classic Car Insurance:

Classic car insurance is an optional coverage tailored for vintage or collector cars. It offers agreed-upon values for unique vehicles and is typically intended for cars that are not used for regular commutes or daily driving. This type of coverage recognizes the special value and characteristics of classic and collector vehicles.

Driving without insurance

Penalties for Driving Without Insurance

The penalties for driving without insurance in Nevada depend on whether it is a first, second, or third offense, and the number of days that have passed since the insurance coverage lapsed.

First Offense

For a first offense, the driver can expect:

• A fine ranging from $250 to $1,000, depending on how long they have been without insurance.
• A reinstatement fee to get their plates back.
• Their vehicle possibly being impounded.
• Suspension of registration until they pay the reinstatement fee.
• Requirement to file an SR-22 if it has been more than 90 days since they had insurance.

Second Offense

For a second offense, the penalties increase:

• A $500-1000 fine, depending on how long the driver has been without insurance.
• A reinstatement fee to get their plates back.
• Suspended registration until they pay the reinstatement fee and file an SR-22.

Third Offense

For a third offense, the penalties become even more severe:

• License suspension for 90 days.
• Registration suspension until the driver pays reinstatement fees and files an SR-22 with the state.
• File an SR-22 for the next 36 months.
• Pay $500 to get their license plates back.

Avoiding Penalties

To avoid penalties, it is important for Nevada drivers to ensure their coverage does not lapse, even for a single day. Nevada does not allow any grace period for lapses in insurance. Drivers should also remember that the state uses a live monitoring system to track insured drivers. As soon as a driver's coverage lapses, the state knows, and if a police officer runs a license plate on an uninsured driver, they will face significant legal penalties.

Insurance rates

In Nevada, auto insurance is mandatory for all drivers and vehicle owners. The state has some of the most expensive insurance rates in the country, with the average cost of car insurance being $943 for minimum coverage and $2,983 for full coverage annually. The average monthly cost of car insurance in Nevada is $79 for minimum coverage and $249 for full coverage.

Several factors influence insurance rates in Nevada. One of the primary factors is the driver's age, with insurance being significantly more expensive for younger and less experienced drivers. For instance, in Nevada, auto insurance for a 16-year-old driver costs $8,947 per year, compared to $1,388 for a driver in their 50s.

Gender also plays a role in determining insurance rates, with men typically paying higher premiums than women due to perceived riskier driving behaviour. Marital status can also impact rates, with married motorists in Nevada saving an average of $98 per year on car insurance.

Additionally, driving history and credit score can significantly influence insurance rates. A single at-fault accident or speeding ticket can increase rates by hundreds of dollars per year. A DUI conviction will result in even higher increases, with an average yearly increase of $643.53 in Nevada. A good credit score can help lower insurance rates, with drivers with excellent credit scores in Nevada saving up to $2,425.80 per year compared to those with low credit scores.

The type of vehicle insured also impacts the cost of insurance in Nevada. Vehicles with expensive or hard-to-source repair parts tend to have higher insurance rates. Additionally, the location of the insured within the state can affect rates, with larger metropolitan areas typically having higher insurance rates than smaller cities.

Self-insurance

In the state of Nevada, it is mandatory for all drivers to have auto insurance. The minimum motor vehicle liability insurance coverage is $25,000 in bodily injury per person, $50,000 in total bodily injury per accident, and $20,000 in property damage, also known as the "25/50/20" rule.

As an alternative to purchasing auto insurance, drivers in Nevada can choose to become self-insured. Self-insurance is an acceptable alternative to purchasing a car insurance policy under Nevada's financial responsibility law. To be eligible for self-insurance, you must own more than 10 vehicles, all of which must be registered under your name in the state. The Nevada Department of Public Safety (DPS) will grant your application if you can prove that you can and will continue to be able to pay any judgments against you for an accident you cause. Specifically, you must be able to pay out at least as much as an insurer would under the minimum insurance policy.

Nevada has a competitive and healthy auto insurance market, and shopping for insurance may allow you to achieve competitive pricing. It is recommended that you seek the advice of a qualified insurance professional when purchasing insurance.

Frequently asked questions