Most residents of Nevada understand that they must carry certain minimum amounts of liability insurance in order to obtain a driver’s license. However, these same residents often do not understand how much insurance they must carry and the penalties for failing to comply with the law. This post will attempt to summarize the minimum rules of what state law requires in the way of mandatory insurance coverage.
The basics
When the state of Nevada passed the “no fault law,” it also passed a statute specifying the minimum amount of liability insurance that a driver must have in place in order to obtain a driver’s license. The purpose of the mandatory insurance law was to provide a pool of insurance benefits that would be available to pay injury and medical expense claims under the no fault law.
The minimums can be simply stated:
- $25,000 for bodily injury or death person involved in an accident
- $50,000 for bodily injury or death in a single accident
- $25,000 for property damage in a single accident.
The dollar amounts stated above refer to the minimum amount of coverage that a qualifying policy must provide. In other words, a proper no fault policy must provide at least $25,000 of coverage for each person injured or killed in an automobile accident. A person may elect to purchase additional coverage but is not required to do so.
Penalties for failing to buy insurance
The penalties for failing to purchase insurance in the specified minimum amounts can subject a driver to fines and potential loss of driving privileges. The fines range from $250 to $2,000. Nevada maintains an online insurance verification system that tracks drivers’ compliance with the mandatory insurance requirements. The system will impose an immediate fine of $250 for any lapse in coverage and a $250 fee for reinstating the license. The reinstatement fees increase for a second and third offense within five years. Nevada law imposes increasing fines for subsequent offenses; the increased fines can run to $1,000 per offense. Perhaps the most serious penalty is license revocation after three or more lapses in coverage.
Anyone facing charges for a lapse in mandatory automobile liability insurance may wish to seek advice from an experienced insurance attorney. A knowledgeable attorney can evaluate the evidence and provide advice on the most prudent course of action.
