Full Coverage Auto Insurance: Nevada's Requirements Explained

In Nevada, full-coverage auto insurance is a comprehensive policy that provides compensation for any type of loss. It covers damage when the policyholder is at fault for an accident and when the other driver is at fault. It also covers damage that occurs outside of a car accident, such as theft, vandalism, or fire. Full coverage auto insurance in Nevada includes liability insurance, collision insurance, comprehensive insurance, uninsured/underinsured motorist insurance, and medical payments coverage. While the state requires a minimum level of liability insurance, full coverage is recommended for vehicles worth more than a few thousand dollars or less than ten years old.

Liability insurance

In Nevada, liability insurance is a legal requirement for all drivers. It covers the cost of injuries to other people and damage to their property in the event of an accident where you are at fault. The minimum coverage is $25,000 in bodily injury liability per person, $50,000 in bodily injury per accident, and $20,000 in property damage ("25/50/20"). This means that your insurance will cover the other person's injuries up to $25,000 per person and $50,000 per accident, and it will cover damage to their property up to $20,000.

Bodily injury liability insurance will also cover family members who live with you and use your car, even if you are not present when the accident occurs. This means that if someone in your household is at fault for an accident while driving your car, the insurance will cover the other party's injuries up to the specified limits.

Property damage liability insurance covers the other party's car repair bills or, if needed, the cost of a new car, up to the specified limit. Some insurance companies allow you to raise this limit for an additional cost.

Collision insurance

When purchasing collision insurance, you will be required to pay a deductible—the amount you pay out-of-pocket before your insurance compensates you. Deductibles typically range from $250 to $1000, and the higher the deductible, the lower your monthly premium.

While not mandatory, collision insurance can provide valuable financial protection in the event of an accident, helping you cover your own losses when you are at fault.

Comprehensive insurance

For example, if your car is damaged by a fallen tree or a severe storm, comprehensive insurance will cover the cost of repairs. Similarly, if your vehicle is stolen or vandalised, comprehensive insurance will provide the financial means to buy a new car or repair the existing one. This type of insurance is particularly relevant in areas prone to natural disasters, such as floods or fires, as it offers protection against financial loss in such events.

It is important to note that comprehensive insurance does not cover your injuries or the injuries of your passengers in the event of an accident. To ensure protection for medical treatment costs, you would need to consider additional coverages, such as Uninsured/Underinsured Motorist coverage or Medical Payments coverage.

When purchasing comprehensive insurance in Nevada, you will need to consider the deductible amount. The deductible is the portion of the damage cost that you must pay out-of-pocket before your insurance company compensates you for the remaining amount. Generally, a higher deductible will result in lower insurance costs, while a lower deductible will lead to higher insurance premiums.

Uninsured/underinsured motorist insurance

In Nevada, Uninsured/Underinsured Motorist (UM/UIM) coverage is an optional feature that can be added to an auto insurance policy. This type of insurance provides protection in the event of an accident where the other driver is at fault but does not have insurance or has insufficient insurance to cover your losses.

There are two types of UM/UIM coverage in Nevada:

• Uninsured Motorist Bodily Injury (UMBI) Coverage: This type of coverage pays for medical expenses and lost wages when you or your passengers are injured in an accident with an uninsured or underinsured driver. UMBI also covers damages for pain and suffering, which are not typically covered by liability insurance. The minimum coverage limits for UMBI in Nevada are $25,000 per person and $50,000 per accident.
• Uninsured Motorist Property Damage Coverage: This type of coverage pays for property damage to your vehicle if you are involved in an accident with an uninsured or underinsured driver. The minimum coverage limit for property damage in Nevada is $20,000 per accident.

It is important to note that UM/UIM coverage is not required by law in Nevada. However, insurance companies are mandated to offer it, and drivers have the option to accept or reject it. If you choose to reject UM/UIM coverage, you must do so in writing.

While it is not mandatory, purchasing UM/UIM coverage can provide valuable protection in the event of an accident with an uninsured or underinsured driver. According to estimates, around 10-12% of drivers in Nevada do not have car insurance, and others may have only the minimum required coverage, which may not be sufficient in serious accidents.

In summary, while not compulsory, Uninsured/Underinsured Motorist Insurance is an important consideration for drivers in Nevada. By adding this coverage to your auto insurance policy, you can ensure that you and your passengers are protected in the event of an accident with a driver who lacks sufficient insurance.

Medical payments insurance

In Nevada, auto insurance is a requirement for all drivers by law. The minimum vehicle liability insurance coverage is $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage, also known as "25/50/20".

In Nevada, MedPay coverage limits typically range from $1,000 to $10,000, depending on the insurance provider. It is important to note that MedPay does not cover your own or your passengers' injuries in all scenarios; it is specifically designed to cover medical treatment costs resulting from a car accident.

When purchasing auto insurance in Nevada, it is recommended to seek advice from a qualified insurance professional to ensure you are getting the coverage that best suits your needs.

Frequently asked questions