Nevada Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Nevada

• In the state of Nevada, all vehicles must carry liability insurance in the amounts of  $15,000 for bodily injury or death of one person in an accident, $30,000 for bodily injury or death of two or more people in any one accident, and $10,000 for injury to or destruction of others property.
• Nevada requires that all motorists obtain a policy from a company that is licensed and registered with the Division of Insurance.
• In the state of Nevada, all drivers must carry "proof of financial responsibility" at all times. This means the state has the right to request documentation proving that you have a valid auto insurance policy that would cover any personal or property damages you might cause in a motor vehicle accident.
• The state of Nevada has an insurance verification program in place. The insurance verification program (IVP) is a joint campaign between state approved insurance agencies and the department of motor vehicles. Once a vehicle is identified as a possible uninsured vehicle, the verification process begins. If the registered owner of the vehicle does not respond within 20 days to a request from the state of Nevada, the vehicle registration will be suspended and the owner must either reinstate or surrender his plates. Responses to requests can be made through Nevada's online Insurance Verification Response or the mail.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Nevada, your policy must include minimum liability coverage of:

$15,000 for bodily injury or death of one person in an accident,
$30,000 for bodily injury or death of two or more people in any one accident,
and
$10,000 for injury to or destruction of others property

What are the Rental Car Insurance Requirements?

In the state of Nevada it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required by Nevada law. It is important to keep in mind that most Nevada auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required in the state of Nevada, however the state highly recommends purchasing this additional coverage.

What are the rules pertaining to the exclusion from coverage of a driver living in a household?

In the state of Nevada, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance policy carefully before you sign on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If you allow your auto insurance to lapse, you are not covered once it lapses. In the state of Nevada, if you are caught driving without insurance, your vehicle registration will be suspended.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Nevada, auto insurance companies may use Personal Credit History to determine rates and offers for products. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your credit score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. Although auto insurance companies can use Personal Credit History as a tool to help determine rates, the vast majority of auto insurance companies do not use Personal Credit History alone. They also consider age, gender, where you live, car make and model, how much you drive, and driving history.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Nevada follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Nevada is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Nevada resident’s average insurance premium was approximately $1,006, the 9th most expensive in the nation. This up 2.1% from the previous year. The national average was $817.

Sources
Insurance Information Institute

State of Nevada Department of Motor Vehicles