The state of Nevada ranks in 40th place among the 50 states when it comes to the expense associated with obtaining car insurance on a passenger vehicle. The state of Nevada has a financial responsibility law in effect that requires drivers to carry a minimum amount of liability insurance on their vehicle in order to be able to drive legally anywhere in the Silver State. Compared with the average spent by Louisiana drivers who pay the highest automobile insurance rates in the nation, averaging around $2500 annually, Nevada residents pay annual car insurance premiums averaging around $1200 a year.
Who Can Self-Insure in Nevada
Only drivers who own 11 or more vehicles registered in Nevada are allowed to fulfill their financial responsibility duties through self-insuring. Everyone else must obtain liability insurance coverage from an insurance company which has been licensed to do business in the state. Nevada law requires that minimum amounts of liability coverage be purchased for a vehicle, whether or not that vehicle is used on a regular basis. Private passenger vehicles driven in Nevada must meet what is called a 15/30/10 formula in order to comply with the state’s financial responsibility law, proving that they can cover the cost of any damage they inflict to someone else’s car or injuries sustained by other individuals following an automobile accident in which they are judged to be at fault.
The 15/30/10 Nevada Car Insurance Minimums
The 15/30/10 formula refers to having liability insurance that covers $15,000 for bodily injury for one person in an accident, a total of $30,000 for bodily injury sustained in one accident, and $10,000 toward covering the cost of damages caused to the property of another. But the requirements of Nevada’s financial responsibility law don’t end there. In order for insurance to be valid, it must be provided by a carrier licensed to do business in the state and the insurance card provided to the driver by the insurance company must be carried in his vehicle at all times.
This insurance card is considered the driver’s proof of having obtained the proper amount of liability insurance and must be shown whenever requested by a law enforcement official as well as when requested to do so at the scene of an accident. Nevada drivers who want to avoid financial catastrophe, however, usually opt to spend a few more dollars every month by obtaining coverage beyond the minimal liability requirements. This comprehensive coverage helps to cover expenses on their own vehicle that may be damaged by an uninsured driver or require repairs due to some other cause such as theft or vandalism. Additional financial security is available through insurance policies that offer coverage for medical expenses, personal injury protection, towing a vehicle from the scene of an accident, reimbursement of rental car expenses while a driver’s vehicle is being repaired, and protection against drivers who may flout the law and either be uninsured or underinsured.
The Insurance Verification Program
Nevada drivers should be aware that big brother is watching whether or not they are in compliance with insurance minimum laws thanks to something called the Insurance Vertification Program (IVP). Insurance companies work with the state’s Department of Motor Vehicles to alert them about any new policies that have been written and any policies that have lapsed or been terminated. This allows the Department of Motor Vehicles to flag scofflaws and send them a request for insurance verification by mail. Failure to respond to this notice entails a suspension of the driver’s vehicle registration.
Drivers who fail to provide proof of insurance are not only subject to having their vehicle registration suspended, they are also subject to being fined a reinstatement fee ranging between $250 and $1750. If a driver is involved in an accident without being able to show proof of insurance, they can be arrested, jailed and fined. Smart drivers avoid the possibility of incurring unwanted expenses by shopping around for the best automobile insurance at the lowest rate. With an estimated 12 percent of all Nevada drivers still taking chances and remaining uninsured, smart drivers not only obtain the minimum amount of liability coverage required by state law, they also ask their insurance agent to recommend what other policy features they recommend to protect their financial assets in the event of an accident.