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Insurance and Financial Responsibility
1) Insurance
The State of Nevada requires that all registered motor vehicles be covered by liability insurance. Nevada requires that automobile liability insurance policies carry minimum coverage of:
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The Department of Motor Vehicles has established an Insurance Verification Program (IVP) to identify uninsured motorists and enhance the public safety of Nevada residents. An insurance company authorized to do business in the State of Nevada must report coverage. Using the information provided by the Nevada insurance companies, the DMV has been very successful in identifying registration records where insurance has been terminated and no new policy issued.
Motorists who have dropped their insurance are asked first to verify their coverage. If there is no response or if the coverage cannot be verified, the DMV suspends the registration and notifies the owner through a certified letter.
Uninsured motorists are required to provide current proof of insurance and pay a $250 reinstatement fee to reinstate a suspended registration. The fee can be reduced to $50 if the motorist has sufficient proof that the vehicle was not operated during the period insurance coverage was not in effect.
Nevada law enforcement officers are required to remove the license plates from any vehicle on which the registration has been suspended. They may also impound the vehicle itself.
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In addition to the above minimum coverage, you can add coverage such as: a. Bodily injury liability. This provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it is a good idea to have the same level of coverage for all of your vehicles. b. Medical payments, no-fault or personal injury protection coverage, which usually pays for the medical expenses of the injured driver and passengers in your car. There may also be coverage if you are injured by a vehicle as a pedestrian. |
c. Uninsured motorist coverage. This pays for injuries caused by an uninsured driver or, in some states, a hit-and-run driver in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle.
Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance.
d. Comprehensive physical damage coverage, which pays for losses resulting from incidents other than a collision. For example, comprehensive insurance covers damage to your car if it is stolen or if it is damaged by flood, fire, or animals. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket.
e. Collision coverage, which pays for damage to your car when your car hits, or is hit by, another vehicle or other object. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. f. Property damage liability, which protects you if your car damages someone else's property. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. g. Rental reimbursement coverage, which pays for a rental vehicle (usually up to $20 a day) when the insured's vehicle is out of commission as a result of a loss covered under comprehensive or collision coverage. |
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2) Financial Responsibility
The financial responsibility laws also apply to accidents and include the following provisions:
- If you are in an accident that is investigated by law enforcement, your insurance information and a description of damages or injuries will be sent to our financial responsibility section by the investigating officer.
- If you are in an accident that is not investigated by law enforcement and the accident causes $750 or more in damages, or if anyone is injured, you must complete and send a Report of Accident Form (SR-1) to the DMV within 10 days of the accident. When you have completed the form send it to:
Department of Motor Vehicles
Central Services Division-Financial Responsibility Section
555 Wright Way,
Carson City, Nevada 89711-0400
- You must complete the accident report form (SR-1) if your are either the driver or the registered owner of the vehicle.
- The accident report form has to be filed even when you are the only one involved in an accident.
- You can get a report form from any DMV office, the Nevada Highway Patrol, or a local law enforcement agency.
If you do not report an accident to the DMV, your driver's license and/or your vehicle registration may be suspended.
3) Moral Responsibilities in Case of an Accident
If you are involved in a traffic accident you must:
- Stop
- Get medical help for any injured
- Warn traffic
- Notify law enforcement
- Exchange your name, address, driver's license number, registration and insurance information with other drivers involved
- If the accident involves an unattended vehicle or other property, you must give the owner the above information either in person or by leaving a note