Do You Have the Right Type and Right Amount of Car Insurance Coverage?
Countless times in my more than 30-year career, I have met with clients who say they carry “a full coverage car insurance policy”. Unfortunately, “full coverage” may not be what it sounds like, and may not offer you the protection or benefits you intended when you purchased your car insurance policy.
Nevada requires that automobile liability insurance policies carry a minimum coverage of $25,000 for bodily injury or death of one person in any one car accident; $50,000 for bodily injury or death of two or more persons on any one car accident; and $20,000 for injury to or destruction of property of others in any one car accident.
In other words, to legally operate a vehicle in the state of Nevada you must have an insurance policy with at least $25,000/$50,000 in coverage to compensate those persons injured in a car accident that is your fault. This minimal limit may be referred to as “full coverage” because you are legally operating a vehicle on the streets and highways of the state of Nevada with the full coverage required.
Unfortunately, $25,000 may not be enough insurance coverage to protect you if you cause serious injuries in a car accident that is your fault. Additionally, the injured party can seek recovery against your personal assets should you not carry sufficient liability limits. This is especially true should the injured party require a trip to the emergency room.
Secondly your “full coverage” policy may not protect you if you are injured in an accident of no fault of your own and the at-fault driver is either uninsured or has a minimal limit policy. Almost every insurance company licensed to operate in the state of Nevada can offer you the option of purchasing uninsured/underinsured motorist coverage. This type of coverage is not mandatory but is extremely important should you sustain serious injuries in a car crash and the person causing the accident has no coverage or minimal coverage to compensate you for your medical bills and injuries.
It is recommended that you protect yourself and your passengers by purchasing uninsured motorist coverage. Such coverage will protect you if you are injured by an uninsured or underinsured driver. The cost of this coverage can be relatively inexpensive and provide you with significant peace of mind.
Finally, consider purchasing medical payments coverage. This type of coverage will help pay medical bills incurred because of an accident, regardless of fault. Medical payments coverage can be purchased in varying amounts and is helpful should you require medical treatment after an automobile accident.
The time to review your automobile insurance coverage is before, not after, you are involved in a car accident. You might be surprised that you do not have sufficient coverage on your policy and that the policy does not protect you in the event you are injured by an uninsured driver.