Nevada Car Insurance Laws
All vehicle owners in the Silver State are required to meet state-set financial responsibility requirements in order to legally operate their vehicles, which they can do by buying and maintaining a policy that meets certain requirements.
Minimum Protection Standards
The state requires that policies in the state have minimum levels of protection.
In general, a proper Nevada auto insurance plan must provide for at least $40,000 worth of coverage per accident. Residents can buy two different types of policies to meet this requirement: split-limit or combined single-limit.
Minimum split-limit policies protect against the following:
• up to $15,000 in bodily injury liability per person per accidentMinimum combined split-limit policies, on the other hand, pool both types of protection together. They provide a total of $40,000 worth of coverage per accident, with no restrictions on how much can be paid for bodily injury damages and how much can go toward paying for property damages.
• a total of $30,000 in bodily injury liability per accident
• up to $10,000 in property damage liability per accident
Penalties for Driving Uninsured
All vehicles that are found to be lacking automobile insurance coverage in the state are subject to a suspension of registration. And in July 2011, the Nevada Department of Motor Vehicles implemented a tiered fine system for motorists who flout the financial protection law. The tiers are based on the number of offenses that a driver has racked up and how long he or she had been unprotected.
First-time offenders who were uninsured for less than a month are only responsible for paying the $250 fee to reinstate their registration. Total costs for first-time offenders going uncovered for 31 to 90 days are $500. For 91 to 180 days, the total jumps to $750.
But first-time offenders who go without a policy for 181 days or more must pay the $250 reinstatement fee and a fine of $1,000, and they are required to file an SR-22. The amounts in some cases double with each offense, with the highest total fine coming in at $1,750.
According to regulators, drivers who have let coverage lapse will also find it more difficult to track down an affordable auto insurance policy.
In addition to the possibility of fines and higher premiums down the road, drivers who get into an accident while they are uninsured could have their licenses revoked, according to regulators.
Nevada law specifies certain restrictions for insurers regarding the cancellation of a policy mid-term after the 70-day mark.
Nevada car insurance companies can legally cease to cover an individual mid-term after 70 days only if the policyholder failed to pay the premium, misrepresented him or herself when buying the financial protection plan or is convicted of a crime that severely worsens his or her risk profile, among other reasons.
Except for when the cancellation is due to a failure to pay premiums, an insurer must provide a 30-day notice prior to the cancellation. If it is because of a failure to pay, protection ceases immediately.