There is a minimum amount of insurance that each state mandates for its drivers. The Commissioner of Insurance in each state sets the required limits of coverage that you must have if you are a resident and drive in that state. The mandatory coverage is only a part of the automobile insurance that is available to protect you, your family and other drivers on the road. You may want to acquaint yourself with the other forms of coverage that are available so that you are not caught off guard in the event of an accident.
While most states require some forms of liability insurance there are actually six major areas of coverage for your automobile. The minimum levels of coverage vary from state to state. In general, these areas are: Bodily injury liability, Property damage liability, Personal Injury Protection, Collision, Comprehensive, Uninsured/Underinsured motorist’s coverage.
With regards to liability, bodily injury liability covers any damages that you may have caused another person in an accident that you caused. Personal injury protection or PIP covers your health care costs from an accident even if it wasn’t your fault. And. property damage liability covers the repair and/or replacement of any property that was destroyed as a result of an accident.
Collision insurance covers the cost of repairing or replacing your vehicle if it was involved in an accident. Comprehensive coverage protects your car in the event that it is damaged as a result of anything other than an accident, for example if your car is stolen, someone breaks into it or there it suffers flood damage.
And uninsured motorist coverage pays for any damages that are a result of an uninsured motorist or a hit and run driver Under-insured motorist coverage comes into play if the other driver, who is at fault, does not have enough insurance to cover you. However, this coverage is not used to cover damages to your car.
It is against the law in most states to drive without proper car insurance. Drivers of private passenger vehicles in the State of Nevada are required to carry bodily injury coverage and property damage coverage form a licensed insurance company in Nevada.
Nevada is serious about making sure its residents carry auto insurance and as a result, have an Insurance Verification Program in place. The IVP is set up where insurance companies report all new policies and all cancelled policies to the DMV.
If you are found to have cancelled your insurance but did not replace it, the DMV will flag your vehicle as being uninsured. The DMV sends you a request asking you to verify that you do have insurance and you have 20 days to return the information including your policy number, vehicle VIN number and the name of your insurance company.
You can mail the information back to the DMV or fill out a verification response online. If you do not respond to this request, you will receive a letter from the DMV that your license has been suspended.