Nevada Auto Insurance Laws
Auto Insurance Laws and Trends in NV
Nevada is a tort insurance state. This means that in the case of a motor vehicle accident, the party that is deemed to be at fault is responsible for paying medical expenses and property damages incurred.
The mandatory minimum limits required in Nevada are $15,000 per person and $30,000 per accident for bodily injury, and $10,000 per accident for property damage. Other, optional coverage is available – such as collision, comprehensive, personal injury protection (PIP), and under/uninsured motorist coverage.
Auto insurance premiums in Nevada
Because the tort system of auto insurance allows motorists to seek compensation from the driver who is responsible for injuries and damages, insurance premiums tend to be more expensive than in most no-fault insurance states. According to recent studies by the Nevada Department of Insurance, tort insurance rates are expected to be influenced by several factors. Insurance company premiums cover lawyer fees associated with lawsuits:
- Increasing gas prices: The price of gas has been shown to impact driving habits, thus leading to more accidents and claims.
- Medical malpractice: Reforms in the tort insurance laws have led to more claims against doctors.
- Product liability suits: Drug companies often print incorrect information or fail to include information regarding how a certain prescription or over the counter medication can affect a person's ability to drive. This leads to more lawsuits against medical companies.
Younger drivers in Nevada
Being the 9th most expensive state for auto insurance in the country, Nevada has been targeting younger drivers in an effort to curb bad driving habits before they start. Many accidents and fatalities are due to speeding, alcohol, and driver distractions, such as taking and texting on cell phones. Nevada also has an insurance verification program in effect. This requires all auto insurance companies to provide the DMV with a list of new policies and policies that have been cancelled or lapsed.