Auto Insurance: Liability Policies

Bodily Injury Liability

This type of insurance does not protect you or your car directly. Third-party bodily injury liability insurance only protects you when you are the cause of an accident in which other people are injured. Should those other people decide to sue you for their medical bills, this type of insurance protects you from their claims. This will also cover you if a family member living in your house caused the accident, or if it was caused by someone that you let use your car (with permission).

Bodily Injury coverage carries only limited benefits. The limits let you know how much money your insurance company will pay toward the injured person’s medical bills and how much they will pay per person, should more than one person get hurt in the accident.

It’s important that you understand your policies limitations. The state of Nevada requires that your policy carries minimums of $15,000 for injury or death of each person injured in the accident and $30,000 for injury or death of all persons injured in an accident.

If your policy limits are too low, then you may want to purchase additional coverage. The extra cost of higher coverage tends to be relatively low.

Property Damage Liability

This type of insurance pays for damage you cause to the property of others, such as a crushed fender, broken glass, a damaged wall or fence. Your insurance will pay for this damage whether you are driving your automobile or whether it is being driven by another person with your consent.

The state of Nevada requires that your policy hold at least $10,000 for damage to the property of others.

The policy limits may also extend to include a trailer that is designed to be pulled behind a private passenger auto, pickup or van.

Uninsured/Underinsured Motorist Coverage

Uninsured Motorist Coverage protects you directly. This policy only covers injury to your person. It protects you if you’re injured by a hit-and-run driver or a driver who doesn’t have insurance, or whose policy limits are not high enough to cover your injuries. It doesn’t cover your vehicle or the other driver.

You do not have to purchase this coverage, or you may elect to purchase limits lower than your bodily injury limits of liability, but you will be required to sign a waiver indicating your decision. Nevada law does not require that you carry uninsured/underinsured motorist coverage.