New auto insurance liability requirements taking effect in Nevada

Nevada drivers who currently have limits lower than 25/50/20 must purchase the new minimum liability coverage by July 1.

Nevada State Route shield. (Source: Wikipedia/Nevada DOT)

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It has been several decades since Nevada drivers first were required to carry auto liability insurance in the amount of $15,000 in bodily injury per person, $30,000 in bodily injury per accident, and $10,000 in property damage (15/30/10).

Related: What’s on the horizon for auto insurers?

That is changing effective July 1. As a result of Senate Bill 308, the minimum motor vehicle liability insurance coverage has been raised to $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage (25/50/20).

Fines, traffic citations

Nevada drivers who currently have limits lower than 25/50/20 must purchase the 25/50/20 minimum liability coverage by July 1, 2018 to ensure that they are in compliance with Nevada law and avoid Department of Motor Vehicle fines or traffic citations.

In addition to the required liability insurance, Nevada drivers can purchase uninsured/underinsured motorists (UM/UIM) coverage on an optional basis. Nevada law requires an insurance company to offer this protection at a level no less than the minimum liability limits. With the change in liability limits to 25/50/20 effective July 1, 2018, Nevada drivers who have purchased UM/UIM in an amount less than 25/50 will have to re-select (or reject) their UM/UIM coverage.

Related: 3 ways to protect yourself from uninsured and underinsured motorists

Higher premiums for many

The Nevada Division of Insurance has pointed out that many Nevada drivers will see higher auto insurance premiums along with the higher insurance limits.

“While this new law isn’t going into effect until July, the division has already received and approved filings from insurance companies with the new minimum vehicle liability limits,” explained the state’s insurance commissioner, Barbara Richardson. “This means some companies may have already begun to implement this new requirement for their policyholders when they renew their policies or when they write new business.”

Related: Top 15 private passenger auto carriers for 2017, as ranked by NAIC

Steven A. Meyerowitz, Esq., (smeyerowitz@meyerowitzcommunications.com) is director of FC&S Legal, editor-in-chief of Insurance Coverage Law Report, and founder and president of Meyerowitz Communications Inc.