Auto Insurance provides protection to consumers by assuming certain risks and paying for financial loss.
The type of auto insurance bought will depend on how the financial loss can occur. In Nevada, legal and financial responsibility is based on the law of negligence. A negligent act which causes damage is legally known as a Tort.
Financial responsibility
To make sure that innocent parties are respectively compensated for their injuries, Nevada auto insurance law requires that all registered owners of a motor vehicle have security for Tort liability arising from the use of their motor vehicles.
Auto insurance in Nevada law requires that the insurance policy must at least provide coverage in the amount of $15,000 for bodily injury or death of one person in an accident, $30,000 for bodily injury or death of two or more persons in an accident, and $10,000 for injury or damage to the property of others. This coverage is generally described as 15/30/10. When you have liability coverage, your auto insurance company will pay for the victim’s damages up to your policy limits.
The penalty for not having liability auto insurance is severe.
If you are found to be without auto insurance by a law enforcement officer, the penalty will be enforced by a court of jurisdiction and is generally more severe.
If you do not carry auto insurance, and your motor vehicle gets into an accident, your registration and driver’s license may be revoked.
You may also be required to have an insurance company certify that you have auto insurance. Most auto insurance companies will charge you an additional fee for this certification (commonly referred to as a SR-22) that you will have to maintain for a three-year period.
Finally, once you have gone without auto insurance for any period of time you may find it difficult to find auto insurance you can afford. Many companies do not insure people who have not had insurance or have allowed their insurance to expire.