Nevada Car Insurance Requirements
Car insurance is a reality for Nevada drivers just as it is in any other state. Insurance is required due to the state’s financial responsibility law which dictates drivers must bear the responsibilities of causing injuries or damaging property in a car crash. Nevada drivers have two options for insurance including a standard car insurance policy from a state licensed company or self insuring if they have 11 or more vehicles registered in their name.
The self-insurance option is usually only exercised by car dealers or fleet owners. But there are some collectors and sole proprietors with enough vehicles and financial resources to self-insure. Since most Nevada drivers will purchase a standard car insurance policy, let’s look at those requirements.
Car insurance laws in Nevada are based on a no-fault model. Therefore, their liability limits are fairly low in comparison to some other states. The cheapest auto insurance policy can you buy in Nevada offers only liability insurance as follows:
- one victim’s injury or death – $15,000 per accident
- multiple victims’ injury or death – $30,000 per accident
- property damage liability – $10,000 per accident
Nevada does not require personal injury protection, med-pay, or uninsured/underinsured motorist coverage. Some drivers choose to add those options along with others like collision and comprehensive. Ultimately, how much car insurance you need depends on your own circumstances.
Nevada’s Insurance Verification Program (IVP)
In order to keep uninsured drivers off the road as much as possible, Nevada has instituted an interesting initiative they call the Insurance Verification Program (IVP). Under IVP, companies writing car insurance policies in Nevada must update the state on a monthly basis regarding all of their policies. They send reports detailing newly purchased policies, those that have lapsed, and those canceled by customers.
If your name appears on one of those reports as having a cancellation or lapse, without replacing your policy with a new one, you will be flagged in the system as someone possibly driving illegally. If a police officer were to run a random check on your plate he would quickly find out the situation. In today’s age of technology, trying to drive without insurance is far too risky.
If you violate the state compulsory insurance law your registration will be suspended it until you straighten the matter out. If you’re caught driving without insurance the police will probably seize your registration and plates while also having your car towed to the impound lot.
The only way to get your car back and reinstate your registration is to pay the associated fees which can range between $250 and $1,750. Repeat offenders may be subject to higher fines and license suspensions as well.