Car insurance terminology can be confusing. As a responsible driver, you know that Nevada law requires you to have insurance. However, you might not know what types of insurance are required and how your policy limits might affect your liability and compensation following a car accident. Knowing the different types of insurance can help you make informed decisions about your current coverage and make the claims process simpler following a car accident.
Full Coverage Auto Insurance, Defined
Insurance carriers may have different ideas of what “full coverage” entails. In general, the following insurance terms may apply:
- Liability coverage falls under the umbrella of full insurance coverage, and this type covers the person who is the victim of the accident that’s caused by another party. For example, your liability coverage will kick in when you are at fault for an accident. If the other driver is at fault, you will seek compensation for damages under their liability coverage. Nevada law requires that all drivers carry liability coverage; unfortunately, the minimum requirements are only $15,000 per person/ $30,000 per accident and $10,000 for property damage. These limits are often not enough to cover the damages incurred in an accident.
- Collision coverage provides the assets to fix your own vehicle when you’re involved in an accident. Comprehensive collision coverage also provides coverage if your vehicle sustains damage from other causes like vandalism.
- MedPay insurance covers your medical bills when you sustain injuries from a vehicle – for example, you get hit by a car as a pedestrian. Unfortunately, many people assume they don’t need MedPay if they have health insurance, but this isn’t always the case.
- Uninsured/Underinsured coverage (UM/UIM) is a type of policy that kicks in when an at-fault motorist does not have enough coverage to pay for your damages. For example, if a person at fault for an accident only has Nevada insurance minimum requirements, you may need to file a claim with your own insurance under this policy. The insurer must offer UM/UIM equal to your liability coverage. For example, if you have the minimum insurance requirements in Nevada, you have $15,000 in UM/UIM coverage.
Generally, insurance brokers consider liability coverage, collision, and comprehensive as “full coverage” insurance. Note that MedPay is not included in this definition, but it’s a good idea to purchase to protect yourself.
The Benefits of Additional Coverage
Purchasing more than Nevada law requires is a good way to protect yourself from liability and incurring additional bills. MedPay, for example, has several notable benefits:
- It’s a no-fault benefit, so it will provide coverage to you regardless of who is at fault for an accident.
- It covers both you and your household members regardless of where an accident occurs – you will be covered in your car, another’s car, or even as a passenger in a taxi or Uber.
- It pays for any treatment that your health care coverage denies, as many policies won’t pay primary for damages incurred in a car accident.
- It covers everyone in your vehicle at the time of an accident, even if they aren’t named members on your policy.
UM/UIM coverage is also essential to protect yourself from additional bills. Purchasing coverage beyond the minimum of what your insurance coverage offers is advisable. For example, if you purchase $100,000 in UM/UIM coverage, it can provide a relatively inexpensive form of security. If you get in an accident with someone who only has $15,000 in liability coverage, you will have $115,000 available to you to compensate for damages.
Full coverage auto insurance is essential for protecting yourself and your family, but definitions may vary by broker. Talk to your insurer about your coverage and ensure you have adequate protection in case of an accident. A Las Vegas accident attorney from Cogburn Law Offices can help you navigate whether or not you have a claim and can sue the party responsible for you car accidents.