Full Coverage vs. Liability Insurance in Nevada: What Drivers Actually Need

Understanding the difference between full coverage and liability insurance is essential for all Nevada drivers. Many motorists assume that carrying the minimum required policy is sufficient, only to discover too late that their coverage leaves significant gaps that expose them to unanticipated financial expenses following an accident. Choosing the right type and amount of car insurance involves balancing legal compliance with practical risk management. To assist you in making an informed decision, the attorneys at Paul Padda Law explain the difference between full coverage and liability insurance in Nevada. If you have additional questions, contact Paul Padda Law by calling (800) 712-0000 to schedule your free consultation.

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The primary difference between full coverage and liability-only car insurance is that liability insurance only pays out when you cause damage to another party and/or vehicle, whereas full coverage insurance will cover injuries to occupants of another vehicle, damage to another vehicle, and cover damage or loss to your vehicle.

What Are Nevada’s Minimum Liability Requirements?

Each state decides what type of liability insurance motorists are required to purchase and what the minimum coverage amounts will be. Nevada requires drivers to carry liability coverage in the following minimum coverage amounts:

• Bodily Injury: $25,000 per person
• Bodily Injury: $50,000 per accident
• Property Damage: $20,000 per occurrence

To understand how the minimum liability coverage works, imagine that you purchase an insurance policy with only the minimum coverage. You are involved in a collision in which you are at fault. The vehicle (a brand-new Mercedes-Benz) is totaled and the driver along with two passengers are injured. The driver suffers $50,000 in injuries and each passenger incurs another $25,000 in damages. Your insurance would only pay $20,000 in property damage coverage for the vehicle because that is the maximum coverage under the terms of your policy. The driver would only be entitled to $25,000 because your coverage caps bodily injury at $25,000 per person. The two passengers would have to split the remaining $25,000 because your insurance caps bodily injury damages at $50,000 per accident.

What Does Full Coverage Insurance Include in Nevada?

Full coverage car insurance refers to insurance that covers everything covered by liability insurance, plus comprehensive and collision coverage. Although the specific terms of an insurance policy will differ somewhat, collision insurance covers the cost of repairing or replacing your own vehicle if you are involved in an accident with another vehicle or if your vehicle is damaged in a collision with an object, such as a concrete barrier or street sign. Comprehensive coverage provides coverage for damage caused to your vehicle in non-collision events, such as theft, natural disasters, or vandalism.

Full coverage insurance may also give you the option to purchase add-ons, including medical payment, uninsured motorist and underinsured motorist coverage. Medical payments provide coverage for medical bills incurred by you or a passenger following an accident, regardless of who is at fault. Uninsured and underinsured motorist coverage kicks in an provides additional insurance coverage if you are involved in an accident and the at-fault driver does not have insurance or has policy limits that are too low to fully compensate you for your losses and injuries.

How Does Nevada’s High Uninsured Motorist Rate Influence Your Choice?

According to the Insurance Information Institute (iii), about 10-11 percent of Nevada drivers are uninsured.  That means that if you are involved in a collision, there is about a one in 10 chance that the other party is driving without insurance. The odds are even higher that the other driver is underinsured. If the uninsured/underinsured driver was at fault in the accident, and you only have liability insurance, there is no insurance coverage available to compensate you for your property damage and personal injuries. When you compare car insurance coverage, consider whether you want to put your vehicle and yourself at risk before deciding to forego full coverage insurance.

Cost Differences in Las Vegas

When shopping for car insurance, the cost of premiums is undoubtedly an important factor for you. Not surprisingly, full coverage insurance will cost noticeably more than liability-only insurance because it provides significantly more coverage. Additional factors that typically influence car insurance premiums include:

• Location: Insurance rates are higher in some states than in others. Rates may also be higher in certain zip codes or cities within the same state.
• Vehicle: Newer, expensive vehicles are usually more costly to insure. Certain vehicles are also more expensive to insure because they are among the most frequently stolen vehicles.
• Drivers: Your age, gender, and driver history will all impact your insurance rates.
• Deductible: If you increase your deductible, it will usually decrease your monthly premiums.
• Add-Ons: Add-ons, such as underinsured motorist coverage, medical payments, and roadside service will typically increase the cost of your car insurance.

Does Your Coverage Impact What Happens After an Accident?

The type of insurance you purchase as well as the coverage limits and deductibles you choose can directly impact what happens after a car accident in Nevada. By way of illustration, imagine the following insurance claim scenarios:

• Rear-End Collision: If you are at fault, your insurance will pay for the damage to the other vehicle regardless of what type of coverage you have; however, if the other vehicle rear-ended you, they are likely responsible for damages and injuries. If they are uninsured or underinsured, your insurance would only cover the damage/injuries if you have full coverage.
• Hail Damage: Your insurance will not cover the damage if you have liability only. If you have full coverage, your comprehensive coverage will apply.
• Hit-And-Run Crash: If you have liability insurance only, you are out of luck unless the police identify the driver, and they have insurance. If you have full coverage insurance, your own collision coverage insurance should cover the damages.
• Theft: Liability only insurance will not cover theft; however, if you have full coverage insurance, your comprehensive coverage should cover the cost to replace stolen property.

When Does Full Coverage Make Sense?

Deciding what type of insurance is right for you can be challenging. Some people are simply more comfortable purchasing full coverage insurance because it significantly limits their risk. For others, specific factors point to the need for full coverage insurance, such as:

• Value of Vehicle: If your vehicle is worth more than the state minimum ($20,000) property damage coverage, you should consider purchasing full coverage insurance.
• Vehicle Loan: If you have a car loan or lease, the finance company likely requires you to carry full-coverage insurance to limit their risk. Your loan agreement may even allow the finance company to purchase full coverage insurance and add the cost to your loan if you fail to keep adequate insurance.
• High Traffic Exposure: If you drive long distances on a regular basis or spend considerable time in your vehicle, you may wish to consider purchasing full coverage insurance since your risk of an accident or theft is probably higher than average.

How a Paul Padda Law Accident Attorney Helps If Insurance Denies Coverage

If you are involved in an accident, you may turn to the other party’s insurance company or your own insurance company to compensate you for property damage and/or injuries suffered in the accident. If the insurance company denies coverage, an experienced Nevada car accident attorney at Paul Padda Law can help.

We will carefully review the relevant insurance policy to identify applicable coverage, exclusions, and notice requirements that may have been misapplied. We will challenge a denial of coverage if warranted, negotiate an advantageous settlement on your behalf, and address bad faith conduct if necessary. By understanding policy language and insurance practices, our experienced car accident attorneys protect your rights and improve the likelihood of securing compensation for your damages and injuries.

If your insurance claim has been denied, contact an experienced car accident attorney at Paul Padda Law at (800) 712-0000 to schedule a free consultation.