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.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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