Higher Minimum Vehicle Liability Requirements
In Nevada insurance coverage, how much am I required to have?
The State of Nevada requires every individual operating a vehicle to carry a minimum liability insurance policy. Effective July 1, 2018, the minimum Nevada insurance coverage liability for motor vehicles has increased to $25,000 per person. While $50,000 per accident for bodily injury, and $20,000 per accident for property damage.
In addition, Nevada drivers have the option to purchase Uninsured Motorists (UM) and Underinsured Motorists (UIM) coverage. This will provide more coverage protection than the minimum coverage required by Nevada law. Uninsured Motorist coverage will cover expenses that result from an accident with an individual who does not have insurance. Underinsured Motorist Coverage will cover the rest of the injuries and property damages when the at-fault driver’s liability insurance exhausted.
Generally, when an underinsured motorist causes an accident, the at-fault party’s coverage will pay your medical bills or property damage. Following exhaustion of the liability coverage, you may be responsible for all remaining medical bills and/or property damage. If an uninsured motorist causes an accident, you may be responsible for the entirety of your medical bills and property damage. Many drivers purchase Uninsured Motorist and Underinsured Motorist coverage to avoid this risk.
Stacking Nevada Insurance Coverage
Further Protection via UM/UIM Stacking:
Even with Uninsured Motorist and Underinsured Motorist coverage, a severe accident may result in bills and injuries beyond coverage limits. Unlike California, Nevada allows for the “stacking” of Uninsured Motorist and Underinsured Motorist coverage. This allows for the collection from more than one insurance policy.
Nevada Insurance Coverage Stacking Within the Same Policy:
When you have multiple vehicles with Uninsured Motorist and Underinsured Motorist coverage, you can “stack” each policy. This is to cover your medical bills and property damage. For example, you have two cars. Each was insured with $25,000 of bodily injury coverage. Unfortunately, you were involved in an accident with an uninsured or underinsured individual. Considering these facts, You may be able to stack your policies, resulting in the collection of up to $50,000.
Stacking With Different Policies:
A Nevada driver can also “stack” insurance coverage across different policies. For example, you have two vehicles. One is insured by Insurance Group A with $25,000 of bodily injury coverage. And the second one was insured by Insurance Group B, which has $50,000 of bodily injury coverage. Because of that, you may still be able to collect up to $75,000. Whether you are driving Vehicle 1 or 2 at the time of the accident, it may not matter with respect to the amount ultimately collected.
Calculating UM/UIM Collections:
If the at-fault party is uninsured or underinsured, then you can make a claim for Uninsured Motorist and Underinsured Motorist benefits. Nevada Law compensates you for damages in excess of the at-fault party’s policy. For example, the at-fault driver carries a $25,000 liability policy. And you have a $50,000 Uninsured or Underinsured Motorist endorsement. Therefore, your policy will pay for all the damages in excess of $25,000 up to an additional $50,000. This allows for recovery of up to $75,000.
The Nevada Legislature provides an avenue for insurance companies to prevent the stacking Uninsured Motorist Coverage. There are three prerequisites to determining the validity of an anti-stacking provision:
The limiting provision must be expressed in clear language;
The provision must be prominently displayed in the policy, binder, or endorsement; and
The insured must not have purchased separate coverage on the same risk nor paid a premium calculated for full reimbursement under that coverage.
An insurance company’s failure to comply with either of the first two prerequisites or payment of a double premium, notwithstanding compliance with the first two prerequisites, will make the limiting provision void and unenforceable.
If you need help with your auto accident case, call our motor vehicle crash lawyers at (844) 443-7339. We will help you claim the compensation you deserve. Read more about car accident law and insurance on our Medium page.