Nevada Raising Auto Insurance Minimums. Is Yours Enough?
If you own or drive any vehicle other than a moped that is registered and operated on the streets of Nevada, you are probably aware of the state’s legal requirement for carrying a certain state minimum limits of auto liability insurance. What you may not know at the present time is the fact that those minimums are about to rise, and if you have not upgraded your auto policy by then, you are going to lose your registration.
As things currently stand, all Nevada drivers are legally responsible for carrying insurance in a ratio of 15/30/10. On a per-crash basis, this translates to:
- $15,000 for the death of or bodily injury to a single person.
- $30,000 with a $15,000 per-person limit for the death of or bodily injury to more than one individual.
- $10,000 for the destruction of or injury to another person’s property.
On the first of July 2018, things will change. As of that date, the limits for minimum liability coverage will rise to 25/50/20, meaning that as of that date, Nevada law will require drivers to carry corresponding limits of $25,000, $50,000 and $20,000 respectively.
If you already carry insurance in these limits or higher, you have nothing to worry about. Others, however, can expect to be paying somewhat higher premiums for their mandatory auto liability insurance coverage.
These minimums in liability insurance serve to cover damage to injuries and property suffered by other people in a vehicular accident for which the insured is found to have been at least partially responsible. The new limits reflect the higher contemporary costs of paying tort liabilities concerning bodily injury, death or property destruction of another person or persons due to the improper use or maintenance of the insured vehicle. They do not in any way involve the collision or comprehensive coverage that a driver would carry for repairing damage to his own vehicle as the result of vandalism, theft, animal strikes, acts of nature or an at-fault crash.
Nevada Penalties for Inadequate or Nonexistent Auto Insurance
The state of Nevada insists that the owners of all registered vehicles carry the minimum levels of liability insurance obtained through a state-authorized insurance company. Nevada does not recognize out-of-state insurance. As proof of adequate coverage, all motor vehicle owners must present Nevada’s “Evidence of Insurance” card whenever they:
- Register a vehicle for the first time.
- Renew an expiring registration.
- Reinstate their registration.
- Change their license plates.
At all times, this card must remain in the vehicle and available for presentation upon request to a member of law enforcement.
In addition, Nevada’s Department of Motor Vehicles will expect an update whenever:
- You purchase or renew an auto insurance policy.
- Your insurance company modifies or transforms its name.
- Your policy number changes.
It’s important to keep in mind that Nevada gets tough on vehicles owners who let their insurance lapse. After just one uncovered day, the state will likely suspend your registration, and if this happens, you can expect to be charged a minimum of $251 to get it reinstated.
Dropping Liability Coverage in Nevada
Unless you have covered your vehicle with at least the minimum in liability insurance, the state of Nevada will not permit its registration to remain in effect. Before dropping liability insurance, therefore, you will have to cancel your registration and either turn in your plates or bring at least the rear plate to the DMV and scrap off its decal in person. If you are selling or donating the vehicle, be sure to remove the plates and cancel the registration before you drop your insurance.
If you have any questions about the new auto insurance liability limits and the options you have for meeting them, contact our office today. Insurance issues can seem complicated, but they don’t necessarily have to be. To review the liability coverage that you carry right now and evaluate your future options, give us a call today and let our agents give you the answers you need.