Nevada Auto Insurance Requirements: What You Need To Know

Auto insurance is a product that provides financial protection for road vehicles and their drivers from loss, physical damage, bodily injury liability, and theft resulting from traffic collision. In Nevada, drivers must carry a minimum of $25,000 in bodily injury liability per person, $50,000 per accident, and $20,000 for property damage per accident. This is an increase from the previous limits of $15,000 per person and $30,000 per accident. Nevada is an at-fault state, meaning the driver responsible for the accident must cover the damages. This also means that insurance premiums may reflect driving records, with poor records potentially leading to higher costs.

Bodily injury liability insurance

In Nevada, bodily injury liability insurance is a legal requirement for all drivers. This type of insurance provides financial protection in the event of a traffic collision, paying out for the injuries of others up to a certain limit. The minimum coverage in Nevada is $25,000 per person and $50,000 per accident. This means that if you cause an accident, your insurance will cover the costs of the other party's injuries, up to $25,000 per person and $50,000 in total. It's important to note that this type of insurance does not cover your own injuries or those of your passengers; it is specifically for the people you may injure in an accident.

The costs covered by bodily injury liability insurance can include medical bills and lost wages. For example, if the person you injure in an accident needs to take time off work to recover, your insurance will cover their lost income up to the policy limit. This type of insurance will also cover the cost of emergency services, such as ambulances, and any ongoing medical treatment or rehabilitation that may be required.

It's important to remember that bodily injury liability insurance is not a substitute for health insurance. It specifically covers the costs associated with injuries caused by the policyholder to another person in a traffic accident. While it provides financial protection in the event of an accident, it does not cover damage to property, for which you would need separate property damage liability insurance.

In Nevada, it is mandatory to carry proof of insurance at all times when driving, and you must present this if requested by law enforcement officials. Failure to comply with the state's insurance requirements can result in fines, suspension of your driver's license and vehicle registration, and even jail time if you are involved in an accident while uninsured.

Property damage liability insurance

If you are financing or leasing your vehicle, your lienholder or leasing company may require you to carry additional coverages.

You must carry proof of your insurance in your vehicle or on a mobile device at all times. Failure to comply with the law may result in fines, the loss of your driver's license and vehicle registration, and the impounding of your vehicle.

Collision insurance

While collision insurance is not required by law in Nevada, it is generally recommended if the value of your vehicle is high. Collision insurance has a deductible, which is the amount you must pay out-of-pocket before your insurance coverage kicks in. Typically, deductibles range from $250 to $1,000, and the higher the deductible, the lower your monthly premium will be.

When purchasing collision insurance, it is important to consider the value of your vehicle and your tolerance for risk. If your car is new or expensive to replace, collision coverage is often worth the cost. On the other hand, if the value of your car is low, the cost of collision insurance may outweigh the benefits.

In addition to collision insurance, drivers in Nevada are required to have a minimum of $25,000 in bodily injury liability coverage per person and $50,000 per accident, as well as $20,000 in property damage coverage. These are the minimum requirements, and drivers can choose to purchase additional coverage for added protection.

Comprehensive insurance

The cost of your comprehensive insurance will depend on the deductible you choose. The deductible is the amount of money you must pay out-of-pocket before your insurance company compensates you. Generally, choosing a higher deductible will result in a lower insurance cost, as the insurance company is assuming less liability for repair costs.

If you have a loan or lease on your vehicle, you are usually required to have full coverage, which includes both comprehensive and collision insurance. Comprehensive insurance will provide financial protection for your vehicle, but it is important to remember that it will not cover your own medical bills or the medical bills of your passengers. You may need to purchase additional insurance, such as medical payments coverage, to ensure you and your passengers are protected in the event of an accident.

In addition to comprehensive insurance, there are other optional coverages available in Nevada, such as collision insurance, rental reimbursement coverage, and roadside assistance. When purchasing auto insurance, it is important to understand the different types of coverage available and choose the options that best meet your needs.

Uninsured/underinsured motorist coverage

For example, if you suffer $150,000 in injuries caused by an uninsured driver, and only $25,000 is covered by the other driver's insurance, your UM coverage can pay the remaining $125,000. This type of coverage can also provide protection if you are hit by a driver with insufficient insurance. In that case, UM coverage can help pay for medical expenses, lost wages, and repair costs.

It is important to note that UM coverage does not cover damage to your vehicle if you are at fault or if the damages exceed your policy limits. Therefore, it is recommended to consider other coverage options, such as collision and comprehensive insurance, to ensure adequate protection.

In addition to UM coverage, other optional insurance coverages in Nevada include medical payments (MedPay), gap insurance, and roadside assistance. MedPay covers medical expenses for you and your passengers, regardless of who is at fault in the accident. Gap insurance covers the difference between the amount you owe on your vehicle and its actual cash value, protecting you from owing more than your vehicle's worth. Roadside assistance covers breakdowns and other issues, such as flat tires, dead batteries, and towing.

Frequently asked questions