Nevada Auto Insurance Requirements

Nevada law requires all drivers to carry minimum auto insurance and maintain proof of coverage at all times.

Compulsory Insurance Law

Minimum Liability Coverage: 25/50/20

Nevada requires the following minimum liability insurance:

Expressed as: 25/50/20

Exam Tip: Nevada's minimum liability limits are 25/50/20. This is the SAME as Oregon and Kentucky but DIFFERENT from many states. Memorize 25/50/20 for Nevada.

What Liability Coverage Does

Bodily Injury Liability:

• Pays for injuries to OTHER people when you're at fault
• Medical expenses, lost wages, pain and suffering
• Legal defense costs
• Settlements and judgments against you
• Does NOT cover injuries to you or your passengers

Property Damage Liability:

• Pays for damage to OTHER people's property when you're at fault
• Vehicles, buildings, fences, other structures
• Does NOT cover damage to your own vehicle

Exam Tip: Liability coverage covers DAMAGES TO OTHERS, not to you or your property. That's why it's called "liability"—it covers your legal liability to other people.

Nevada Financial Responsibility Law

Proof of Insurance Requirements

Required at All Times:

• Valid insurance identification card (physical or electronic)
• Must show proof to law enforcement upon request
• Must show proof after accident
• Must show proof at DMV for registration

Acceptable Proof:

• Insurance ID card from insurer
• Electronic proof on phone (photo not sufficient—must be carrier app or email)
• SR-22 certificate (if required)

Penalties for No Proof:

• First offense: Minimum $250 fine + court costs
• Second offense within 3 years: $500 fine + court costs
• Third offense: $1,000 fine + court costs
• License suspension possible
• SR-22 requirement for 3 years

Electronic Proof

Nevada allows electronic proof of insurance:

Acceptable Electronic Formats:

• Insurance company mobile app showing current policy
• Email from insurer with policy details
• Electronic document on phone/device

Not Acceptable:

• Photo of insurance card
• Expired documents
• Printout that's not current

Exam Tip: Nevada accepts electronic proof of insurance, but it must be from the insurer (app or email), not just a photo of your card.

Nevada Tort System

At-Fault System (Not No-Fault)

Nevada uses a tort-based system for auto insurance:

What This Means:

• At-fault driver is responsible for damages
• Injured party files claim with at-fault driver's insurance
• Injured party can sue at-fault driver
• No personal injury protection (PIP) requirement
• Fault is determined by investigation or courts

Contrast with No-Fault States:

• No-fault states (like Massachusetts): Each driver's own insurance pays regardless of fault
• Tort states (like Nevada): At-fault driver's insurance pays
• Nevada does NOT have no-fault insurance

Determining Fault:

• Police reports
• Witness statements
• Physical evidence
• Traffic law violations
• Insurance company investigation
• Comparative negligence rules

Comparative Negligence in Nevada

Nevada follows modified comparative negligence:

Rules:

• Each party assigned percentage of fault
• Damages reduced by your percentage of fault
• Cannot recover if more than 50% at fault

Example 1: 20% at fault

• Your damages: $10,000
• You are 20% at fault
• You can recover: $10,000 × 80% = $8,000

Example 2: 60% at fault

• Your damages: $10,000
• You are 60% at fault (more than 50%)
• You can recover: $0 (barred from recovery)

Example 3: 50% at fault

• Your damages: $10,000
• You are exactly 50% at fault
• You can recover: $10,000 × 50% = $5,000

Exam Tip: Under Nevada's modified comparative negligence, you can recover damages if you're 50% or less at fault, but your recovery is reduced by your fault percentage. If you're more than 50% at fault, you cannot recover.

Required Coverage Offerings

Uninsured/Underinsured Motorist (UM/UIM)

Nevada does NOT mandate UM/UIM coverage, but insurers MUST offer it:

Offer Requirements:

• Insurer must offer UM/UIM coverage
• Must be in writing
• Insured can accept or reject
• If rejected, must sign written rejection form
• Rejection valid until insured requests coverage

What UM/UIM Covers:

• Uninsured Motorist (UM): Covers you when hit by driver with no insurance
• Underinsured Motorist (UIM): Covers you when at-fault driver's limits are insufficient
• Typically same limits as liability (or can be less)
• Covers bodily injury (and property damage in some policies)

Why Important:

• Significant percentage of Nevada drivers are uninsured (estimated 10-15%)
• Protects you when at-fault driver cannot pay
• Covers you and your passengers
• Relatively inexpensive coverage

Recommended Minimums:

• Match liability limits
• Many experts recommend 100/300/100 or higher
• Particularly important in Las Vegas area with high uninsured rates

Exam Tip: Nevada does NOT require UM/UIM coverage, but it must be OFFERED and rejection must be in WRITING. This is commonly tested.

Medical Payments Coverage (Med Pay)

Optional Coverage:

• Not required in Nevada
• Pays medical expenses regardless of fault
• Covers you and passengers in your vehicle
• Covers you as pedestrian hit by vehicle
• No deductible applies

Typical Limits:

• $1,000 to $10,000 common
• $5,000 is popular choice
• Covers immediate medical expenses
• Pays in addition to other coverage

Benefits:

• Covers medical costs quickly (no fault determination needed)
• Supplements health insurance
• Covers deductibles and co-pays
• Relatively inexpensive

SR-22 Certificate of Financial Responsibility

What is SR-22?

SR-22 is NOT insurance—it's a certificate proving you have insurance.

Purpose:

• Proves continuous insurance coverage
• Filed by insurer with Nevada DMV
• Required for high-risk drivers
• Ensures compliance with insurance law

When SR-22 is Required

Common Situations:

• DUI or DWI conviction
• Multiple traffic violations
• At-fault accident without insurance
• License suspension for insurance lapse
• Reckless driving conviction
• SR-22 requirement from another state

Duration:

• Typically 3 years from date of requirement
• Must maintain continuous coverage entire period
• Any lapse restarts the 3-year period
• DMV notified if coverage lapses

SR-22 Process

How SR-22 Works:

1. Requirement Imposed: Court or DMV orders SR-22
2. Contact Insurer: Notify insurance company of requirement
3. Insurer Files SR-22: Company files certificate with Nevada DMV (fee: typically $15-$25)
4. DMV Receives: DMV confirms receipt and tracks compliance
5. Maintain Coverage: Keep insurance active for required period
6. Completion: After 3 years, SR-22 requirement ends

SR-22 Fees:

• Filing fee: $15-$50 (one-time, varies by insurer)
• Higher insurance premiums due to high-risk status
• DMV may charge additional fees

If Coverage Lapses:

• Insurer notifies DMV immediately
• License suspended
• SR-22 period restarts from date of new filing
• Additional penalties and fines

Exam Tip: SR-22 is a CERTIFICATE filed by the insurer with the DMV proving the driver has insurance. It is NOT a type of insurance. Any lapse in coverage during the SR-22 period restarts the 3-year clock.

Nevada Auto Insurance Policy Structure

Coverage Components

Part A - Liability Coverage (Required 25/50/20 minimum):

• Bodily injury liability
• Property damage liability
• Legal defense costs (unlimited)
• Covered for named insured and family members

Part B - Medical Payments (Optional):

• Covers reasonable medical expenses
• No-fault basis (no need to prove liability)
• Covers insured, family, passengers

Part C - Uninsured/Underinsured Motorist (Optional but must be offered):

• UM: Covers injuries from uninsured drivers
• UIM: Covers injuries when at-fault driver's limits inadequate

Part D - Coverage for Damage to Your Auto (Optional):

• Collision: Damage from collision (includes single-vehicle)
• Comprehensive (Other Than Collision): Theft, vandalism, fire, weather, animals

Part E - Duties After an Accident:

• Notice requirements
• Cooperation with investigation
• No admission of fault without insurer consent

Exam Tip: Only Part A (Liability) is legally required in Nevada. All other coverages are optional, but UM/UIM must be offered and rejected in writing if declined.

Physical Damage Coverage

Collision Coverage

What It Covers:

• Damage to your vehicle from collision with another vehicle
• Single-vehicle collisions (hit tree, pole, guardrail)
• Rollover accidents
• Damage when hit by uninsured driver (alternative to UM property damage)

What It Doesn't Cover:

• Theft or vandalism (that's comprehensive)
• Mechanical breakdown
• Normal wear and tear

Deductible:

• Typical: $250, $500, $1,000
• Higher deductible = lower premium
• Deductible applies per accident

When to Consider Dropping:

• Vehicle worth less than $2,000-$3,000
• Cost of coverage exceeds potential benefit
• Vehicle fully depreciated

Comprehensive Coverage (Other Than Collision)

What It Covers:

• Theft and attempted theft
• Vandalism and malicious mischief
• Fire and explosion
• Windstorm, hail, flood
• Falling objects (trees, rocks)
• Animals (hitting deer, etc.)
• Glass breakage (windshield)
• Riot and civil commotion

Nevada-Specific Considerations:

• Dust storms damaging paint/finish
• Extreme heat causing paint damage (may be excluded as wear and tear)
• Flash flooding (comprehensive covers flood)
• Windshield damage from rocks/debris common

Deductible:

• Typical: $100, $250, $500
• Lower deductibles for comprehensive than collision
• Some policies waive deductible for glass replacement
• Nevada glass deductible buyback endorsement available

Exam Tip: Comprehensive covers damage from events OTHER THAN COLLISION. Remember: Theft, vandalism, fire, weather, animals, falling objects. Collision covers impact with other vehicles or objects.

Nevada-Specific Auto Insurance Issues

Las Vegas Considerations

High-Risk Factors:

• Tourist drivers unfamiliar with area
• DUI rates higher than national average
• 24-hour entertainment district traffic
• Higher theft rates
• Valet parking liability concerns

Insurance Impact:

• Higher premiums in Las Vegas metro
• Increased uninsured motorist rates
• Greater need for UM/UIM coverage
• Comprehensive coverage important due to theft

Rural Nevada Considerations

Unique Risks:

• Animal collisions (deer, livestock, wild horses)
• Long distances to medical facilities
• Limited law enforcement response
• Roadside assistance valuable

Insurance Impact:

• May have lower premiums than Las Vegas
• Comprehensive essential for animal collisions
• Towing and roadside coverage important
• Med pay useful due to distance to hospitals

Nevada Weather and Road Conditions

Summer:

• Extreme heat can cause tire blowouts
• Overheated engines
• Air conditioning essential (medical issue)

Winter:

• Snow in mountain passes (Tahoe, Northern Nevada)
• Black ice on desert highways (cold nights)
• Limited winter maintenance in rural areas

Monsoon Season (July-September):

• Flash flooding
• Poor visibility
• Hydroplaning risk

Coverage Implications:

• Comprehensive covers flood damage
• Collision covers loss of control accidents
• Roadside assistance for breakdowns in extreme temperatures