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- Nevada Increased Auto Insurance Minimums in July 2018
- What are Insurance Minimums?
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Nevada’s insurance minimums have gone up, and you likely saw big changes to your policy and premiums. Here’s what you need to know to comply with the new law now.
Nevada has a state law that requires all drivers to carry minimum insurance. You must purchase the insurance even if you’ve never been in an accident. The coverage applies if you’re in a crash when you’re at fault. You have the insurance to pay the other driver and their passengers for their bodily injuries or property damage if you’re at fault for the accident.
The new rules require each driver to carry $25,000 per person for bodily injury. In addition, you must have $50,000 total for bodily injuries per accident. You must also carry $20,000 per accident to cover property damage.
The increases for bodily injury are a 67 percent increase from previous minimums. The increase for property damage minimums doubles previous Nevada insurance minimums.
Nevada remains an at-fault state for insurance. That means you don’t have to pay the other side for an accident unless you’re at fault. Nevada also uses rules of modified comparative negligence to apportion fault if more than one person is to blame for a crash.
You have a right to bring legal proceedings such as a formal legal case or arbitration if you disagree with the insurance company’s decision in your claim. You’re also free to purchase more than the minimum amount of insurance.
Optional coverage includes types of coverage that can step in if you’re in an accident with someone who doesn’t have adequate insurance to cover your losses. If you opt for uninsured and underinsured motorist coverage, your insurance rates may spike even more.
Experts say that motorists who select uninsured and underinsured coverage might pay $45 or more each month under the new law.
There are 1.9 million drivers in the State of Nevada. There are even more vehicles, with 2.5 million vehicles registered in the state. However, only 31 percent of drivers have the insurance minimums that the law requires them to have. As many as 20 percent of drivers are completely uninsured.
With the cost of a six-month insurance premium in Nevada as much as $673 on average, the premium increase in 2018 has done little to settle the debate about whether increasing insurance requirements helps more people become insured and ultimately makes the roads safer for Nevada residents.
Nevada’s insurance rates are often referred to as 25/50/20 — $25,000 per person for bodily injuries, $50,000 total for bodily injuries and $20,000 for property damage coverage. That puts Nevada in the middle of insurance requirements in the region. Arizona and California have lower maximums for bodily injury requiring only $15,000 in coverage per person and $30,000 per accident. Idaho requires $25,000 per person and $50,000 per accident. Utah requires $25,000 per person and $65,000 per accident.
For property damage, Nevada’s new law gives the state the highest minimums in the region. The Nevada minimum for property damage is $20,000 per accident. That’s double Arizona’s $10,000 minimum for property damage and four times California’s minimum of $5,000. Idaho and Utah both have $15,000 minimums for property damage. You are free to compare premiums and purchase additional amounts of insurance that you feel is appropriate for your needs.
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