Insurance and Financial Responsibility
Insurance and Financial Responsibility tests Nevada's mandatory liability coverage, minimum limits, proof of insurance, and the consequences of a lapse. The key idea is that minimum coverage protects others, not your own vehicle.
Minimum limits
Nevada requires liability insurance of at least 25/50/20: $25,000 for bodily injury to one person, $50,000 for bodily injury per accident, and $20,000 for property damage. Coverage must be maintained on every registered vehicle. Carry proof in the vehicle; the DMV also verifies insurance electronically.
Lapses and SR-22
An insurance lapse can trigger registration suspension and reinstatement fees. After certain violations, the DMV requires an SR-22 certificate of financial responsibility, typically for three years. Financial responsibility means being able to pay for damage you cause.
Worked example
An at-fault crash injures one person with $30,000 in medical bills. The minimum $25,000 per-person limit pays $25,000. The driver is personally exposed to the remaining $5,000 and any other damages. Minimum coverage is not full protection.
Traps that cost marks
Thinking minimum liability covers your own car; dropping insurance while a vehicle is parked; failing to carry proof; assuming uninsured motorist coverage is mandatory in Nevada.