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Nevada Car Insurance Coverage

It is common knowledge that maintaining car insurance in Nevada is required by state and federal law. In order to own and operate a vehicle legally in the state of Nevada, a motorist must maintain a preset minimum amount of Nevada car insurance coverage. Unless you own a fleet of eleven or more vehicles, which few of us do, you must purchase your car insurance through the traditional channels of a licensed coverage company in Nevada. Each state in the country is unique in what it believes should be the required minimum amounts of coverage. However, forty seven states currently require that a motorist possess liability insurance. The minimum coverage requirements are quite lenient in Nevada when compared with other states.

Required Nevada Car Insurance

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 more simply referred to as the 15/30/10 Nevada car insurance coverage limits for the state.

Nevada also operates under what is called a Tort system when it comes to dealing with automobile collisions. More simply put, this means that one party involved in a car accident has to be determined to be at fault for the collision. This is usually done by the police officers who respond to the scene of a car accident. This at fault party and their Nevada car insurance company then become legally and financially responsible for all of the medical bills and property damage repair costs associated with the car accident.

Again, liability insurance is one of the most commonly known and required forms of Nevada car insurance coverage. It is split into two sub sections; bodily injury liability and property damage liability. Bodily injury liability protection will cover the medical bills or funeral expenses for other drivers in an accident for which you are responsible. The most common claims that are filed under bodily injury liability coverage include claims of pain and suffering, losses of income, and medical expenses. It would be wise on your part to insure that the monetary amounts of this car coverage that you purchase are sufficient to cover any legal judgment that could possibly be rendered against you if you are sued in a court of law. It is important that you adequately protect your assets and investments. Liability coverage, in either form, does not assist you with any repairs or bills that you may incur because of the automobile accident.

Property damage liability insurance works in a similar way to bodily injury liability except that it applies to the physical damage another motorist's property may receive. While cars are the most common objects that fall under the definition of property damage, this can include another party's house, fence, mailbox, etc. The particular scenarios and situations that you Nevada vehicle insurance will include and exclude from coverage are listed in the terms and conditions of your policy. When you are choosing what monetary amounts of Nevada car insurance to purchase, you should keep in mind the size and weight of your vehicle. This could give you an approximation of the amount of damage that it could potentially cause to someone's property.

With both of these forms of Nevada car insurance, it is highly important that you choose coverage limits that will adequately protect you and your assets. To not do so could result in you putting yourself in needless financial risk. If you are at fault in an accident where the associated costs exceed the maximums predetermined by your Nevada automobile insurance policy, you are legally liable to pay the remaining costs. Obviously, this can become quite expensive. You also open yourself up to the possibility of costly legal battles as other motorists and carriers seek to recoup their financial losses. A court order can force you to liquidate your physical and financial assets in order to make restitution to another party.

Additional Nevada Car Insurance to Purchase

It is wise to keep in mind that the minimums required by the state of Nevada may not be sufficient enough to protect you financially in the event of an accident. Therefore, additional forms of Nevada auto insurance may be necessary. Collision and comprehensive coverage are two other well known forms of protection. Together, these two are known as "full coverage". You will be required to maintain collision insurance on a vehicle if the car you own has an outstanding balance or loan on it. However, collision insurance may not be the most financially feasible form of coverage for an older car. The amount of money that a company will put towards the repairs on your car will not exceed the maximums set forth by your policy or the current market value of the vehicle, whichever limitation comes first. Because a car tends to depreciate over time, the coverage can end up costing you more than the company would be willing to pay to have your car fixed.

Comprehensive protection acts as the supplement to collision coverage. It is designed specifically to protect your car in the event that it suffers damage from an act of nature or a crime. Examples of these would be damage suffered from a tornado or from theft or vandalism. It will also cover damages that you may receive from striking an animal in the road or from being hit by a hit and run driver.

Both comprehensive and collision coverage come with deductibles. Your deductible is the out of pocket expense you must pay when you file a claim through your carrier before the Nevada automobile insurance company will pay for the rest of the repairs on your car. You will choose this amount at the time of your policy purchase. How high or low your deductible is can affect how high or low your monthly premiums are.

Another form of protection that may be beneficial to you is GAP insurance. This is also known as guaranteed automobile protection coverage, and it is primarily geared towards new vehicles. After a car has been totaled by a company, the company will then offer the owner of the vehicle a settlement. There is often a large discrepancy between the settlement offer and the amount of money that is actually owed on the vehicle. GAP coverage will step in and pay off the remainder of the balance. Understanding how different forms of coverage can work for you is essential in making an informed decision on which ones to purchase.

It is very important to make sure that you do not allow your Nevada car insurance coverage to lapse. The state of Nevada has laws in place that require a Nevada auto insurance company in the state to report to the Nevada Department of Motor Vehicles every time a new policy has been purchased or an old one has expired. The DMV then sends an Insurance Verification Program to the owner of the vehicles to ascertain exactly what is going on with the coverage on a car. If you are unable to satisfactorily offer proof of coverage to the DMV, your license will be suspended until you can obtain proof of Nevada vehicle insurance coverage. It is much easier to simply maintain your coverage on a regular basis.


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