Nevada Auto Insurance Requirements

Residents of the great state of Nevada take pride in the diversity of their home. This state sports some of the greatest “pleasure palace” cities on the planet, Las Vegas and Reno, and also contains some beautiful natural amenities, including snow-capped mountains and wide desert plains.

The state of Nevada requires all drivers to carry minimum levels of auto insurance in order to protect everyone on the state’s roads.

Read on to find out about Nevada’s auto insurance requirements and how you can be sure you have the right coverage to meet them.

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How much is auto insurance per month?

Who is Liable in a car accident in Nevada?

Nevada’s auto insurance laws operate under the tort liability system. This means that if you are involved in an accident and are “at fault” then you will be liable for any damages caused, both medical and physical.

If your auto insurance coverage does not cover some of the costs you will be responsible for any residual amounts due. This could mean that your personal assets, such as your house, car, or bank account, could be taken to pay your debts.

You could also have a garnishment placed on your wages and any income tax refunds you receive would be seized, as well.

Nevada Auto Insurance Requirements

In order to prevent this scenario from occurring, it is always wise to carry more than the minimum liability limits. In Nevada, the minimum you must carry in liability coverage on your auto insurance is $15,000 per person and $30,000 per accident for death or bodily injury, and $10,000 for destruction of property.

These limits are relatively low, so it is a good idea to purchase more insurance if you are able, and raise your limits to the level needed to protect your personal assets.

Nevada does not require any other insurance coverage by law, although it is often a good idea to further insure yourself and your vehicle against injury and damage. One way to do this is by purchasing collision insurance in addition to your liability policies.

Collision coverage pays to repair your vehicle after a deductible is met, if you cause a car accident or are involved in a single-car accident. Your liability insurance will not pay to repair your vehicle, so collision is the only way to insure that your car repair bills are met.

Comprehensive insurance also insures your vehicle against damage; comprehensive pays for damages caused by things other than a car accident, such as a weather-related event like a tornado or hailstorm, or the theft of your vehicle.

Why you should always consider Uninsured and Underinsured Motorist Coverage?

Perhaps most importantly, you should consider getting uninsured and underinsured motorist coverage. This coverage protects you in the event that you are hit by a car driven by someone without insurance.

A recent study by the Insurance Research Council (IRC) estimates that 15 to 19 percent of drivers in Nevada do not have insurance on their vehicles, so uninsured motorist coverage can be a good investment.

Are you required to show proof of insurance in Nevada?

Nevada requires all drivers to carry and produce “proof of financial responsibility” whenever requested to do so by any official. For most people, this means a current insurance card.

The state of Nevada has recently instituted an IVP, or Insurance Verification Program, which allows law enforcement and other officials to instantly check the insurance status of any registered vehicle.

The police will know if you do not have current insurance on your vehicle and will check each time they make a traffic stop or arrive at the scene of an accident.

Penalties for driving with no insurance in Nevada

If you fail to maintain minimum liability insurance in Nevada, the state will suspend the driver’s automobile registration and confiscate the license plates. In order to reactivate your registration, you will be required to produce proof of current, valid insurance and pay a reinstatement fee.

If you fail to maintain insurance on your vehicle more than once, you may be required to file an SR-22 form with the state of Nevada. This is a paper which is endorsed by an insurance company proving that you have non-terminating coverage on your vehicle for a specific amount of time, often three years.

If your insurance company is required to provide SR-22 verification, you could lose your insurance coverage with that company or be forced to pay a much higher premium rate as a “high-risk” driver.

The new, higher rate will stay in effect until you are no longer required to file an SR-22.

Can Nevada auto insurance companies check my credit score?

Nevada allows your credit history to be used by insurance companies in determining your premium rate, but the company will also use your driving history, age, location, and the type of vehicle you drive when making this assessment.

In general, the better your driving history and credit rating, the lower your payments will be.

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Related posts:

1. Michigan Auto Insurance Requirements
2. Nebraska Auto Insurance Requirements
3. North Carolina Auto Insurance Requirements
4. Ohio Auto Insurance Requirements
5. Maryland Auto Insurance Requirements