Driving a vehicle on Nevada roads or any other public roads in other states requires having at least the minimum amount of state-mandated liability insurance. State officials requires the auto insurance coverage to compensate others for any injuries or property damage they might suffer due to the daily operation of the insured vehicle. Without the coverage, people would be forced to resort to lawsuits and other means to recover financial losses from injuries or property damage caused by other motorists. Having the insurance does not ensure no lawsuits would arise from any accidents that might occur. But it does provide a measure of protection for auto owners as well as accident victims while also keeping local courts free of the many lawsuits that otherwise would occur.
Three Levels of Liability Coverage
In Nevada as well as other states, there are minimum amounts of acceptable liability insurance coverage across three areas and represented by three numbers. In Nevada, the state-mandates limits are 15/30/10. That means the motorist has liability insurance coverage that will pay up to $15,000 per accident for injuries to one person, up to $30,000 total for injuries to two or more people and up to $10,000 for property damage. Injuries do not include any injuries to the named insured, whose vehicle is the one for which liability insurance coverage applies. Because the liability limits are among the lowest mandated in the nation, an accident easily can tally much higher medical and property-damage costs.
Some States Mandate Uninsured Motorist Coverage
Although Nevada is not among them, some states also require auto owners to carry uninsured/underinsured motorists coverage. The otherwise optional coverage protects drivers against injuries or property damage caused by hit-and-run drivers, motorists who have no insurance coverage and motorists who do not have enough coverage in place to pay the full cost of treating injuries, lost work, property damage and other potential expenses. If someone driving a costly luxury automobile has it totaled by another driver, the other driver’s insurance policy might only pay up to $10,000 toward damages on a vehicle that might be worth many times that amount. But underinsured motorist coverage would pay up to policy limits for what the offending driver’s liability insurance did not cover.
Do the liability limits you carry on your vehicle adequately cover the potential losses you might suffer if you cause a costly accident?