Auto Insurance In Nevada: Understanding The Minimum Coverage Requirements

Nevada requires all drivers to have auto insurance. The minimum coverage is $25,000 for bodily injury per person and $50,000 per accident, as well as $20,000 for property damage per accident. This is often written as 25/50/20 and is known as the minimum liability coverage. This type of insurance covers the cost of the other party's injuries and property damage in an accident where you are at fault. It is important to note that liability insurance does not cover your own injuries or property damage.

Bodily injury liability insurance

In Nevada, drivers are required to have a minimum of $25,000 per person and $50,000 per accident in bodily injury liability insurance coverage. This type of insurance covers the medical expenses, lost wages, and legal fees of other parties in an accident where the policyholder is at fault. It is important to note that bodily injury liability insurance does not cover the policyholder's own medical expenses or those of their passengers, which would be covered by personal injury protection (PIP) or medical payments coverage.

While the minimum coverage in Nevada is $25,000 per person and $50,000 per accident, it is important to consider your own financial situation when determining how much coverage you need. Experts generally recommend having enough coverage to protect your net worth. If your net worth exceeds the maximum liability coverage offered by your insurer, you may want to consider purchasing an umbrella insurance policy to provide additional protection.

In addition to the financial benefits, bodily injury liability insurance is also a legal requirement in most states, including Nevada. Driving without the minimum required coverage can result in fines or even jail time, depending on the state and circumstances. Therefore, it is crucial to understand the requirements and ensure you have the appropriate coverage.

Property damage liability insurance

While the minimum coverage amount for property damage liability insurance in Nevada is $20,000, it is worth considering purchasing additional coverage. This is because the cost of repairing a vehicle or property damage can quickly exceed this amount, leaving you financially liable for the remaining costs. By purchasing additional coverage, you can protect yourself from potentially costly repairs or damage claims.

It is also important to understand the limitations of property damage liability insurance. As mentioned, this type of insurance only covers the other party's repairs or property damage, not your own. Additionally, property damage liability insurance does not cover any injuries that may occur as a result of the accident. If you want coverage for your own vehicle repairs or injuries, you will need to purchase separate insurance policies, such as collision insurance or medical payments coverage.

In conclusion, property damage liability insurance is an essential component of auto insurance in Nevada. By understanding the coverage limits and exclusions, you can make informed decisions about your insurance needs and ensure that you have adequate protection in the event of an accident. Remember to review your policy regularly and consider purchasing additional coverage if needed to protect yourself financially.

Uninsured/underinsured motorist coverage

In Nevada, if you are involved in an accident where the other driver is at fault and they do not have insurance or have inadequate insurance, your uninsured/underinsured motorist coverage will pay for the medical costs of you and your passengers. This is known as Uninsured Motorist Bodily Injury (UMBI) coverage. It is important to note that this type of coverage does not include a deductible, so you can access these benefits without having to pay any additional amount out of pocket.

Additionally, if your vehicle is damaged in an accident with an uninsured or underinsured driver, your coverage can help pay for the repairs. This is known as Uninsured Motorist Property Damage (UMPD) coverage. In some states, a deductible may be required for UMPD coverage, but it is still a valuable option to have, especially if you do not carry collision coverage on your vehicle.

The benefits of uninsured/underinsured motorist coverage become even more apparent when considering the relatively high number of uninsured drivers on the road. According to the Insurance Information Institute, nearly 13% of drivers countrywide do not have auto insurance, and in some states, this number exceeds 20%. Therefore, having this type of coverage can provide peace of mind and financial protection in the event of an accident involving an uninsured or underinsured driver.

When purchasing auto insurance, it is important to carefully review the different types of coverage available and their respective benefits. While the minimum coverage requirements in Nevada include bodily injury and property damage liability, adding uninsured/underinsured motorist coverage can provide additional protection for you and your passengers in the event of an accident with a driver who may not have sufficient insurance. By understanding the options available, you can make an informed decision about the level of coverage that best suits your needs and provides the financial protection you desire.

Medical payments coverage

Med Pay covers all reasonable and necessary medical bills and/or funeral expenses arising from auto accidents, up to the policy limits. Such expenses can include physical or occupational therapy, ambulance and EMT costs, short- or long-term care (such as home health aides), and dental expenses resulting from broken teeth. It is important to note that Med Pay kicks in after receiving medical bills, and there is no right of subrogation. This means that if your auto insurance coverage pays for your medical bills, and you receive compensation from the at-fault driver's insurance, you are not required to reimburse your insurance company for the Med Pay funds.

The coverages offered by insurance companies for Med Pay are generally $1,000, $2,000, $5,000, $10,000, $25,000, $50,000, and $100,000. The premium for this coverage is relatively cheap, usually only costing a few dollars every month. Med Pay is a great bargain for those without health insurance coverage, as it is more likely to be injured in an auto accident than by any other type of accidental injury.

In Nevada, all insurance companies offering motor vehicle insurance policies are required by law to also offer optional Med Pay insurance with coverage of at least $1,000. However, most vehicle insurers offer Med Pay with higher limits, sometimes as high as $100,000.

Collision insurance

In the state of Nevada, collision insurance is separate from the minimum liability insurance coverage required by law. 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 ("25/50/20"). This basic liability insurance does not cover damage to the insured's own vehicle. Collision insurance fills this gap by providing financial protection for the insured's vehicle, regardless of who is at fault in the collision.

The cost of collision insurance can be high, but there are ways to reduce premiums, such as choosing a higher deductible. Collision insurance is typically required by lenders if the vehicle is financed or leased. Even if it is not required, collision insurance can provide valuable peace of mind, especially for those who drive expensive cars or would struggle to pay for repairs after a crash.

Frequently asked questions