Car insurance plays a critical role in any claim brought after a road accident. In exchange for premium payment, the insurance firm promises to do a range of things for you and also highlights the things that it won’t do for you. But basically, with the right level of cover, insurance offers financial protection in case your vehicle gets damaged. It will also cover for injuries to other drivers, pedestrians or passengers along with their properties. Accidents do happen, so it’s comforting to know that you are covered financially should you be involved in one.
So why is car insurance in Nevada important?
Having automobile insurance is vital as it takes care of your expenses in case of injuries or vehicle damage to other drivers, pedestrians or passengers. The cover also offers financial support in the event your car is vandalized, stolen or destroyed by fire. Driving without insurance is illegal in Nevada – if you lack insurance, you could be fined or disqualified from driving.
Car insurance and law
Nevada follows a traditional “fault” system when it comes to compensation for losses arising from an automobile accident, including property damage, injuries, etc. Meaning, the at-fault party is liable for any resulting harm (typically, the insurance company of the driver who was at fault after the accident will bear the losses, up to policy limits).
The victim who sustains any kind of injury or damage as a result of the accident has three options:
- File a claim with his or her insurance firm – that is if the policy covers the loss (in this case, the insurance company will file a subrogation claim against the at-fault driver’s insurance)
- File a third-party suit directly with the at-fault driver’s carrier
- File a personal injury claim in civil court against the other driver
Types of insurance coverage available
- Collision insurance
- Comprehensive insurance
- Rental car coverage
- Uninsured/underinsured motorist coverage
- Medical payment coverage
- Auto insurance requirements in Nevada
The state requires car owners to have liability insurance that meets the following minimums:
Bodily injury liability of $25,000 per person and $50,000 per accident – this helps take care of expenses tied to injury or death of another person when you are responsible for the accident.
Property damage liability of $20,000 – which takes care of expenses tied to the damage of another’s property, including homes, vehicles, buildings, and so on, when you are responsible for the accident
Nevada car insurance can be tricky – the minimum amount may not be enough to cover damages resulting from a crash or protect your assets. The “right” amount of insurance will depend on your assets that need protection.
Liability coverage covers property damage bills, medical bills and other costs of drivers, pedestrians and passengers who sustain injuries or property damage in a crash you cause, up to coverage limits. Once the limits are exhausted, you will need to pay up to amount out of pocket. This coverage will also apply when a family member or a friend drives your vehicle, or if you’re involved in an accident while in a rental car. Please note that liability coverage won’t apply to your injuries or damage after an accident – unless you get additional coverage for that.