The Nevada Department of Motor Vehicles (DMV), in collaboration with the Nevada Division of Insurance and the Nevada Insurance Council, has issued a reminder to motorists regarding an increase in minimum liability insurance coverage for vehicles. The new requirements will take effect on July 1.
Currently, vehicle owners must have insurance coverage of "15/30/10," which translates to $15,000 for bodily injury per person, $30,000 for all persons injured in a crash, and $10,000 for property damage per crash. These minimums will rise to "25/50/20" or $25,000 for bodily injury per person, $50,000 for all persons injured in a crash, and $20,000 for property damage per crash. This change was established by Senate Bill 308 during the 2017 Nevada Legislature session.
"The costs of medical care and automobile repairs have gone up significantly. The cost of a crash can easily exceed these older minimums," stated DMV Director Terri Albertson.
According to legislative testimony on Senate Bill 308, Nevada's current minimum coverage is among the lowest in the United States. In fact, higher minimums are already enforced in 43 other states.
Many drivers have been informed about the increased coverage requirements during their recent policy renewals. It is recommended that consumers contact their insurance agents or companies to understand how this new law may affect their policies personally.
Legislative testimony also revealed that approximately 32% of Nevada motorists currently carry only the minimum required coverage. The updated limits could impact up to 650,000 drivers and cover around 736,000 vehicles out of nearly two million licensed drivers and 2.3 million registered vehicles needing insurance in Nevada.
Motorists carrying the existing minimum coverage should anticipate premium increases with these higher limits. However, predicting exact premium changes is challenging as they depend on various factors beyond just coverage limits.
While higher premiums may pose an additional financial burden on low-income drivers, these increased limits offer better protection if involved in a crash where costs surpass the previous "15/30/10" thresholds. Drivers might be held personally liable for any excess expenses.
Usage-Based Insurance (UBI) presents one option to potentially reduce premiums. UBI could benefit those who rely on public transportation or ride-sharing services or drive infrequently. The National Association of Insurance Commissioners has introduced DriveCheck—a tool designed to help consumers assess whether UBI suits their driving habits by answering questions about their driving patterns and providing information on UBI functionality.
For further details and frequently asked questions about these changes, individuals can visit the Nevada Division of Insurance website at doi.nv.gov.