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Liability Insurance vs Full Coverage Insurance
In Nevada, drivers must understand the differences between Nevada's required minimum liability auto insurance coverage and the broader protection offered by full coverage plans.
Understanding how each type aligns with your vehicle's value and risk profile can help you make an informed decision about car insurance coverage.
What Is Liability Insurance
Liability insurance covers damages and injuries you cause to others, in the event you're at fault for a car accident.
Liability insurance covers damage for bodily injury liability and property damage up to the Nevada required limits. It also helps cover the personal injury protection (PIP) costs for those injured in a motor vehicle accident caused in which you are the at-fault driver.
Nevada's car insurance requirements require liability insurance to cover up to:
- $25,000 per person for bodily injury
- $50,000 for bodily injury or death of two or more persons
- $20,000 for property damage
How Full Coverage Car Insurance Works in Nevada
Full collision coverage works kinda as an all-in-one car insurance deal, as it typically bundles liability, collision, and comprehensive.
Liability protects you from bodily injury liability and property damage claims when you're at fault for a car accident, while collision covers damages to your own vehicle from any car crash, regardless of fault.
Comprehensive protects against damages caused to your vehicle by theft, vandalism, fire, hail, or animal impacts.
Deep Dive into Liability Insurance
Liability insurance protects you from personal financial responsibility when you cause an auto accident.
It covers bodily injuries and property damage to other drivers, but it does not pay for your own vehicle repair or medical costs. Understanding its limits can help you choose the right coverage options.
Minimum Liability Insurance Requirements in Nevada
Nevada requires drivers to carry the following minimum liability coverage limits for bodily injury and property damage liability:
- $25,000 for bodily injury per person
- $50,000 for total bodily injury
- $20,000 for property damage
These liability insurance requirements are often referred to as the 25/50/20 insurance coverage limit.
How Liability Insurance Protects You Legally and Financially
Liability insurance helps protect you both legally and financially, as it can protect you from being personally sued after a car accident in which you are at fault.
However, if injuries or property damage exceed coverage limits, you must cover the excess.
Understanding Full Coverage Auto Insurance
Full coverage car insurance often includes Nevada's legally required minimum coverage limits along with collision and comprehensive coverage.
When choosing a full coverage policy, the policy should outline coverage limits, policy limits, and how each part of the bundle protects you in case of a car accident.
Collision Coverage Explained
Collision coverage, also known as collision insurance, is a key component of car insurance coverage that covers your vehicle's repair costs regardless of fault in a car accident.
Comprehensive Coverage
Comprehensive insurance is part of full car insurance coverage and protects you from non‑collision events, which result in damage to your vehicle, including vandalism, hail, fire, natural disaster, and flood.
Pros and Cons of Only Choosing Liability Coverage
Choosing a liability-only auto insurance plan means you're only purchasing auto insurance, which covers bodily injury and property damage to others but does not cover your own vehicle repair costs or hospital bills for your passengers.
Pro: When Only Liability Insurance May Be Sufficient
If you're driving a low-value vehicle, the minimum limits of liability coverage may be sufficient, especially if you have an emergency fund to cover out-of-pocket costs.
Con: Potential Risks of Skipping Full Coverage Insurance
If you skip comprehensive coverage, you may become underinsured, especially if your vehicle is damaged by non‑collision events or if you have an expensive vehicle.
Uninsured or underinsured motorist coverage is also not included in a liability-only plan and can expose you to greater financial risk if you are hit by an uninsured driver.
Pros and Cons of Opting for Full Coverage
Full coverage offers greater protection but also comes with higher insurance premiums.
Understanding the pros and cons can allow you to weigh coverage limits against the benefits you receive.
Pro: Added Protection Benefits Against Accidents
Full coverage can cover damages to your vehicle, protect against property damage liability, and help cover excess costs that liability auto insurance failed to fully cover.
It also helps cover medical bills, lost wages, and any additional property damage incurred in a car accident.
Con: Extra Costs
In addition to higher premiums, you may face the possibility of higher deductible payments if you file a claim.
These extra costs can be particularly noticeable depending on your financial situation.
How to Choose the Right Coverage Level
Car insurance decisions often involve selecting a plan that meets your needs, budget, and driving behavior.
Insurance company rates vary by policy, so reviewing the policy limits and coverage limits can help you determine which car insurance coverage is right for you.
How Much Liability Coverage Do You Need in Nevada?
The policy limit for bodily injury liability and property damage should be based on your vehicle's value and your financial risk tolerance.
Consider whether you need coverage limits that exceed Nevada's minimum limits for peace of mind, knowing that even if damage exceeds the minimums, you'll still be covered.
Evaluating Your Personal Risk Profile
Your risk tolerance and driving habits influence the type of car insurance coverage you should invest in, as you may be recommended to invest in full auto coverage if you:
- Drive an expensive car
- Engage in risky driving behaviors such as speeding
- Have a history of motor vehicle accidents.
Reviewing insurance company offers, coverage limits, and your driving history can help you make an informed insurance options decision.
Common Misconceptions About Full Coverage
Many drivers assume that full coverage automatically protects them from every possible loss, but this is a common misconception.
Full coverage is a combination of liability, collision, and comprehensive policies, each with its own limits and exclusions. Without uninsured or underinsured motorist coverage, drivers may still be exposed to significant financial risk in the event they're involved in an accident with an uninsured motorist.
"Full Coverage" vs "Comprehensive" Coverage
Full coverage isn't a single type of insurance, but instead it's a bundle that includes liability, collision, and comprehensive coverage. Comprehensive insurance covers non‑collision events.
Misunderstanding these facts can leave drivers feeling overconfident with their coverage, while in reality, their driving is exposed.
Can I Drive With Only Liability Insurance?
Yes, you can drive in Nevada with only liability insurance; however, liability insurance only covers bodily injury and property damage liability you cause to others, but it does not pay for repairs to your own vehicle or medical expenses for passengers.
It is only recommended to drivers with just liability insurance if:
- Own a low‑value used car
- Have an emergency fund for out‑of‑pocket costs
- Are not financing or leasing the vehicle
- Meet the minimum coverage required by Nevada (25/50/20)
How Do I Add Full Coverage to My Existing Policy?
Call your insurer to upgrade to collision and comprehensive coverage. Provide your vehicle and policy info, and they'll adjust rates and issue new docs.
Review the limits, sign the update, keep a copy, and ensure that your car insurance coverage now includes collision and comprehensive coverage.
What If I File a Claim on My Liability Policy?
Filing a claim on your own liability policy will trigger an insurer review.
If damages exceed limits, you may have to pay the excess. A deductible may also affect whether your insurance company pays for property damage or only covers the portion within coverage limits. If the other driver is at fault, their liability coverage pays for your losses.
Tips for Saving on Nevada Auto Insurance
Navigating Nevada's auto insurance market can feel daunting, but smart strategies can help keep premiums low without sacrificing car insurance coverage and leaving you financially exposed in the event of a crash.
The best ways to save on insurance in Nevada are by:
- Comparing rates
- Reviewing deductibles
- Exploring discounts offered by insurance companies by bundling or meeting special requirements, such as being a veteran
More ways to save are explored below.
Bundling Multiple Policies
Bundling auto insurance with home or renters insurance can cut premiums, especially when car insurance and other coverage are provided by the same insurance company.
Maintaining a Good Driving Record
Avoiding tickets and accidents keeps your premium low. Use defensive driving courses to earn discounts, and keep records of safe driving to prove good habits to your insurance company.
Selecting the Right Deductible
Choose a deductible that balances premium savings with your ability to cover out-of-pocket costs after an accident. Higher deductibles lower monthly rates, but ensure you can afford the amount if an accident claim arises.
Obtain the Compensation You're Entitled To
Contact Us Today
Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
