What Does Liability Insurance Cover?

Most auto liability insurance policies contain three major parts: liability insurance for bodily injury, liability insurance for property damage, and uninsured/underinsured motorist coverage: 1. Bodily injury liability insurance does not protect you or your car directly. If you are the cause of an accident in which other people are injured, this insurance protects you against their claims for damages such as medical expenses, lost wages, and pain and suffering. This insurance coverage will also pay if a member of your family living with you caused the accident, or a person using your car with your consent. Bodily injury liability insurance carries specific benefit limits. These limits address how much money your insurance company is committed to pay for any one victim injured in an accident and limits the amount they must pay for multiple victims. In order to make a smart consumer purchase, you must understand these limits for bodily injury liability insurance. In Nevada, you are required to carry the following limits: $15,000 for bodily injury or death of one person in an accident; and, $30,000 for bodily injury or death of two or more persons in an accident. You may decide to purchase additional coverage. This decision may be based on your desire to protect your assets from additional claims above the minimum amounts. The extra cost of higher coverage tends to be relatively low. 2. Property damage liability insurance pays for any damage you cause to the property of others, such as a crushed fender, broken glass, or a damaged wall or fence. Your insurance will pay for this damage whether you are driving your automobile or whether another person with your consent is driving it. Nevada law requires you to carry $10,000 for injury or damage to the property of others. Once again, you may decide to purchase additional coverage. 3. Uninsured/underinsured motorist coverage protects you directly. This coverage pays if you are injured by a hitandrun driver or a driver who does not have auto insurance (uninsured), or whose policy limits are not high enough to cover your injuries (underinsured). This coverage takes the place of the insurance the other driver should have purchased, or whose policy limits were not enough to cover your injuries. This coverage does not protect the other driver and it does not cover damage to your vehicle. Nevada law requires your insurance company to offer you uninsured motorist coverage in an amount not less than your minimum limits for liability insurance for bodily injury described above. You do not have to accept this offer. Nevada law does not require that you carry uninsured motorist coverage.

Other Nevada Insurance FAQs

Q: What Is The Nevada Definition Of An Insurance Agent?
A: An agent is a natural person, partnership or corporation appointed by an insurer to solicit and negotiate insurance contracts on its behalf, regulated by the Nevada … More
Q: What Are The Necessary Requirements To Become An Agent?
A: The following qualifications must be met in order to become an agent in Nevada: 1. You must pay the licensing fee of $140.00 2. A resident producer must take and … More
Q: What Is An Agent?
A: An agent is a licensed representative of an insurance company who solicits, negotiates, or effects contracts of insurance and provides service to the policyholder for … More
Q: What Is A Broker?
A: A Broker is an individual, partnership or corporation who, for compensation, (not being a licensed agent for the company in which a policy of insurance is placed) acts … More
Q: What Is An Assignment?
A: An assignment is the signed authorization by the policyholder for the insurance company to pay benefits directly to the hospital, doctor, or other provider.
Q: What Is A Legal Service Representative?
A: A legal service representative is an individual appointed to represent a legal service insurance corporation that has been authorized by MDI to conduct a prepaid legal … More
Q: What Is A Beneficiary?
A: A beneficiary is the person designated or provided for by the policy terms to receive the proceeds upon the death of the insured.
Q: What Are Benefits?
A: Benefits are the dollar amount payable by the insurance company to the claimant, assignee, or beneficiary under any valid policy.
Q: What Are The Different Types Of Coverage On An Auto Insurance Policy In Nevada?
A: There are several different types of coverage. 1. Bodily Injury/ Property Damage Liability These coverages protect you if you injure someone else or damage … More
Q: Questions/Factors Insurers May Ask/Consider Before They Offer You A Policy:
A: 1. Driving Record On the application, you will be asked about your previous driving record. Insurers will ask about accidents and traffic violations for any … More