Auto Insurance Requirements: Nevada's Minimum Standards Explained

Auto insurance is a product that provides financial protection for vehicles from loss, physical damage, and bodily injury liability resulting from traffic collision, theft, or other losses. In Nevada, liability car insurance is mandatory for all drivers. As of July 2018, the minimum motor vehicle liability insurance coverage in Nevada is $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage.

Bodily injury liability: $25,000 per person, $50,000 per accident

In the state of Nevada, it is mandatory for all drivers to purchase auto insurance. The minimum motor vehicle liability insurance coverage is $25,000 in bodily injury per person and $50,000 per accident, also known as the 25/50 rule. This means that if you are found to be at fault for a car accident, your insurance will cover the costs of the injured parties up to $25,000 per person, and $50,000 in total for all injured parties in the accident. This coverage also extends to family members or resident relatives who live with you and use your car, even if you are not present in the car when the accident occurs.

Bodily injury liability insurance covers a range of expenses related to the accident, including medical bills, ambulance bills, short- or long-term medical treatment, lost wages, loss of consortium, and more. It is important to note that if the damages from the car accident exceed the state minimum limits, you could be personally liable for the remaining balance after your insurance policy limit is reached. In such cases, the injured party can sue you personally for the remaining balance. Therefore, it is advisable to purchase higher policy limits if you can afford to, especially if you have assets that you want to protect.

Additionally, it is mandatory to carry a policy for every vehicle you own, including cars, motorcycles, trucks, or SUVs registered in Nevada, even if you do not drive them frequently. Failure to comply with the law can result in penalties, including fines, suspension of your driver's license, and vehicle registration.

Property damage liability: $20,000 per accident

In the state of Nevada, drivers are legally required to carry auto insurance. The minimum liability coverage is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $20,000 for property damage per accident. This means that if you are found to be at fault in a car accident, your insurance company will pay out a maximum of $20,000 to cover damage to another person's property. This includes damage to their car, as well as any other property affected, such as fences, lampposts, or government property. It is important to note that property damage liability does not cover damage to your own vehicle or any injuries you may cause in the accident.

Property damage liability insurance is designed to provide financial protection in the event that you cause damage to someone else's property in a car accident. It is a mandatory form of coverage in most states, including Nevada, and helps to ensure that you are not left with a hefty bill if you are found at fault for an accident. While the minimum coverage in Nevada is $20,000, you have the option to purchase additional coverage if you feel that this amount may not be sufficient in the event of a serious accident.

It is important to understand that the minimum coverage requirements in Nevada may not provide adequate protection in all situations. For example, if you cause an accident that results in significant damage to a newer or luxury vehicle, the repair costs could exceed the $20,000 limit. In such cases, you would be responsible for paying the remaining costs out of pocket. Therefore, it is recommended to consider purchasing additional coverage to ensure that you have sufficient financial protection.

Additionally, it is worth noting that property damage liability insurance does not cover damage to your own vehicle. If you want protection against damage to your own car, you would need to purchase separate collision and comprehensive coverage. These optional coverages can provide financial protection for your own vehicle, regardless of who is at fault in an accident.

In conclusion, property damage liability insurance of $20,000 per accident is a crucial component of auto insurance in Nevada. It provides financial protection and peace of mind, ensuring that you are not held fully financially responsible if you cause an accident that results in damage to another person's property. While it is a mandatory coverage, drivers have the option to purchase additional coverage to suit their personal needs and ensure they are adequately protected.

Proof of insurance

In Nevada, drivers must always carry proof of insurance in their vehicles or on a mobile device. This can be in the form of an insurance ID card, a policy declaration page, or a digital copy of either. This proof must be shown to law enforcement officials when requested, and when registering your vehicle, renewing your registration, or changing your license plates.

The minimum insurance requirements in Nevada are $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $20,000 in property damage liability per accident. This is often written as "25/50/20" and is the minimum level of coverage required by law.

It is important to note that liability insurance only covers the injuries and property damage of the other party in an accident if you are at fault. It does not cover your own injuries, your passengers' injuries, or damage to your own property. To protect against these risks, you can purchase additional insurance coverage such as Collision, Comprehensive, Uninsured/Underinsured Motorist, and Medical Payments (MedPay) coverages.

Nevada has strict penalties for driving without proof of insurance, including fines, suspension of your driver's license, and vehicle registration suspension. Even a one-day lapse in insurance coverage can result in penalties, and there are no grace periods. Therefore, it is crucial to maintain continuous insurance coverage and always carry proof of insurance when driving in Nevada.

Self-insuring

In Nevada, drivers have the option to self-insure their vehicles as an alternative to purchasing a car insurance policy. Self-insurance is when a driver assumes the financial risk for their vehicle themselves, rather than transferring the risk to an insurance company.

To be eligible to self-insure in Nevada, you must own more than 10 vehicles, all of which must be registered under your name in the state. You can apply to become a self-insurer with the Nevada Department of Public Safety (DPS). The DPS will grant your application if you can prove that you can continue to pay any judgments against you for an accident you cause. Specifically, you must be able to pay at least as much as an insurer would under the minimum insurance policy.

The minimum insurance requirements in Nevada are:

• $25,000 in bodily injury liability per person
• $50,000 in bodily injury liability per accident
• $20,000 in property damage liability per accident

As a self-insurer, you would be responsible for covering these costs yourself in the event of an accident.

It's important to note that self-insuring is not a suitable option for everyone. The financial requirements are high, and you need to be able to prove that you have the financial capacity to cover any potential accidents. For most drivers, purchasing a car insurance policy will be the more feasible option.

Optional coverage

While liability insurance is the only coverage that is legally required in Nevada, drivers can purchase additional insurance to increase their protection. Here is a list of optional coverages that can be added to an auto insurance policy in Nevada:

Collision Coverage

Collision coverage pays for repairs to your vehicle following a collision, regardless of who was at fault. This type of coverage is subject to a deductible, which is the amount you must pay out-of-pocket before your insurance company covers the remaining costs.

Comprehensive Coverage

Comprehensive coverage insures your vehicle against damage from non-collision incidents, such as theft, fire, vandalism, glass breakage, and contact with animals. Like collision coverage, comprehensive coverage is subject to a deductible.

Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured Motorist (UM/UIM) coverage protects you if you are injured by a driver who does not have insurance or does not have sufficient insurance to cover your medical expenses. This coverage will pay for the medical costs of you and your passengers in the event of an accident caused by an uninsured or underinsured driver.

Medical Payments Coverage (MedPay)

MedPay covers medical expenses for you and your passengers in the event of an accident, regardless of who is at fault. It can also cover other expenses, such as health deductibles, and may be useful for drivers whose health insurance does not cover injuries from car accidents. In Nevada, MedPay coverage limits typically range from $1,000 to $10,000, depending on the insurer.

Gap Insurance

Gap insurance covers the difference between what you owe on your vehicle and its actual cash value. This type of coverage can help prevent you from owing more on your vehicle than it is worth.

Roadside Assistance Coverage

Roadside assistance coverage provides help with breakdowns and other issues that may occur while you are on the road, including flat tires, dead batteries, and towing services.

Frequently asked questions