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Nevada Car Insurance Basics

By varying laws in each state, a motorist is required to carry certain monetary amounts of different forms of car insurance. Nevada's Department of Insurance and the Commissioner of Insurance are the parties responsible for determining the required limits of coverage that a motorist must meet. Nevada car insurance is mandated by state and federal law. It is designed to protect you and the other motorists on the road, in addition to affording you financial protection in the event of a car accident. In addition to the required forms of Nevada car insurance, it may benefit you to familiarize yourself with the other forms of coverage that are available to you as a motorist. Each one is unique in the coverage that it provides.

Requirements for Nevada Car Insurance

Nevada is a state that operates under a Tort system when it comes to dealing with automobile collisions. This means that one party in the accident must be determined to be at fault for the collisions. This person and their Nevada car insurance company then become legally and financially responsible for the medical bills and property damage repair costs for all the other motorists involved. In Nevada, a motorist must maintain minimum Bodily Injury Liability limits of $15,000 per injured person up to a total of $30,000 per accident, and Property Damage Liability coverage with a minimum limit of $10,000 . These are referred to as the 15/30/10 coverage limits for Nevada. Liability insurance is the only form of coverage that is a motorist is required to carry in this state.

While forty seven states, including Nevada, require some form of liability coverage, there are six other major areas of coverage for your car. The monetary amounts and forms of coverage that you are required to carry will vary amongst states. These areas of protection include bodily injury liability, property damage liability, personal injury protection, collision, comprehensive and uninsured motorist coverage. Bodily injury liability and property damage liability actually comprise the two sections of liability insurance. Bodily injury liability coverage pays for another motorist's medical or funeral expenses in an accident for which you are responsible. The most common claims that are filed under this form of coverage in Nevada include claims of pain and suffering, losses of income, and medical expenses.

Property damage liability coverage will pay for another motorist's property damage repair costs. Typically, the damages will be to another person's car. However, under the broad definition of property damage, it can include damage to a person's home, fence, mailbox, or even their lawnmower. It would be wise for you to consider the size and weight of your vehicle in order to estimate the amount of damage that it could potentially cause another person's property. This will allow you to select monetary amounts of Nevada car insurance that will adequately protect you. The situations and scenarios that your policy will cover are explained on the terms and conditions on your paperwork. The maximum amount of money that your Nevada car insurance policy will provide towards a person's claim is limited to the maximum amounts of coverage you selected upon your policy's purchase.

As a motorist in Nevada, you will be required by law to maintain collision coverage on any vehicle that you own that has an outstanding balance on it. Collision insurance will pay for any damages your car may sustain in accident, regardless of who is at fault. It is a way for a lender to protect their collateral (the car) on the car loan that they extended to you. However, the monetary amount that a Nevada automobile insurance company will provide towards the repairs on your car will not exceed the maximums listed in your policy or the current market value of your car, whichever comes first. Therefore, this may not be the most financially feasible form of coverage to maintain on an older car. Comprehensive coverage acts a complement to collision coverage. It is not required by law, but it can be a valuable asset to you. It is designed specifically to cover any damages your car may receive from an act of nature (i.e. a flood or tornado) or from crime (i.e. theft of vandalism).

Personal injury protection insurance is usually only available in states that follow a no fault system. This form of Nevada automobile insurance will pay the medical bills that you or your passengers may incur in an automobile accident. It is not partial to who is at fault in the accident. Because most motorists today are covered by comprehensive health insurance policies, many do not elect to purchase more than the required amounts for this insurance. Uninsured or underinsured motorist protection will, similarly, pay for the medical bills and property damage repair costs that you or your passengers may incur in an accident where you are struck by an uninsured motorist. With both forms of Nevada car insurance, the maximum amount of money that your carrier will provide toward your expenses is listed in the coverage amounts on your Nevada auto insurance policy.

Understanding the Need to Purchase Higher Amounts of Nevada Car Insurance

As a motorist, you need to be aware that if the coverage limits you select on your policy are insufficient to cover the expenses caused by an accident for which you are at fault; you will be putting yourself at risk financially. If the damages from an accident exceed the coverage provided under your policy and you are deemed to be at fault in the accident, you will be held legally responsible for the remainder of the damages. In order to insure that other parties in the accident receive restitution, a court system can force you to liquidate property, financial savings, and other forms of assets. In addition, your future earnings can be docked. Only you can know the full extent of the consequences you would suffer if this were to happen. This is why adequate monetary coverage on your car policy is a necessity. In addition, if you allow your Nevada vehicle insurance coverage to lapse, the Department of Motor Vehicles in Nevada will flag your car as an uninsured one. This will increase the likeliness that you will be pulled over by the police. If you ignore the request from the DMV to reinstate your car coverage, your driver's license will promptly be revoked. It can be quite expensive to have your driver's license reinstated.

It is against the law in most states, including Nevada, to own or operate a car without the required amounts and forms of coverage. Now that you are familiar with the requirements for Nevada, you cannot plead ignorance as an excuse for a lack of Nevada auto insurance. If you are caught driving without coverage, you may be faced with hefty fines. Repeat offenders can have their licenses revoked under state law. If you are involved in accident where injuries are sustained and you do not have Nevada vehicle insurance, you could potentially face jail time. There are many factors and variables that will affect the premiums that you will be charged. It would behoove you to familiarize yourself with these so you can know how to manipulate the variables in your favor. Using price comparison techniques online will also help you to ascertain a low rate on your Nevada car insurance premiums.


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