CHAPTER EIGHT

INSURANCE AND ACCIDENTS

It is mandatory in the State of Nevada for all motorists to carry a minimum amount of liability insurance or proof of financial responsibility. All vehicles must be insured, and proof of this insurance must be carried at all times in the vehicle. The following is the minimum amount of liability coverage you must have:

$15,000 for bodily injury or death of one person in any one accident.
$30,000 for bodily injury or death of two or more people in any one accident.
$10,000 for injury to or destruction of property of others in any one accident.

The insurance company you decide to go with must be authorized to do business in the State of Nevada. If you are not sure about the insurance company, you can call Nevada's Insurance Verification Program at 1-800-344-0483. The Insurance Verification Program is a computerized system that checks registration records for vehicles without insurance. When a vehicle is identified as a possible uninsured vehicle, the registered owner is sent a letter asking him or her to show proof of financial responsibility. If you are the vehicle owner and do not respond or if the insurance company denies coverage, your vehicle registration will be suspended. You will be asked to surrender your vehicle license plates. It is illegal to operate a motor vehicle in the State of Nevada without insurance.

To reinstate your vehicle registration, you will need to show current proof of insurance and pay a $250 reinstatement fee. If the vehicle was non-operational during the period in question, you must provide documentation to verify this. You will then only need to pay a $50 reinstatement fee and also show proof of insurance.

*Note: If you receive a verification request, remember the documents are time-sensitive, so complete and return the form immediately.

The following provisions apply to the financial responsibility laws if you are involved in an accident:

If a law enforcement officer investigates the accident, your insurance information and a description of damages or injuries will be sent to the state’s financial responsibility section.
If you are involved in an accident where there is $750 or more in damages, you must complete and send in a Report of Accident Form (SR-1), within ten days.
If anyone is injured in an accident, you must also forward a SR-1 within ten days.
You must complete the SR-1 if you are either the registered owner or the driver of the vehicle.
You must fill out the SR-1 form even if you are the only one involved in the accident.
You can get a SR-1 form from any Drivers License Office, a Nevada Highway Patrol office, or a local law enforcement agency.
The financial responsibility department will determine: who was at fault, if all vehicles involved were insured, and the total amount of liability.

If you are involved in an accident, found to be at fault, and do not have liability insurance:

Your driver's license and/or vehicle registration will be suspended.
You will need to post a deposit to cover the costs of the accident.
You will need to make arrangements with the other parties involved to cover damages or injuries.

If you do not report an accident, your driver’s license and/or your vehicle registration may be suspended.

Insurance Variables

Many factors affect the way you drive... you know that, and so do the insurance companies. Listed below are many of the variables that affect your driving and the reasons why they may work against you when your insurance rate is calculated.

A. Age - Statistics show that both old and young drivers have a higher probability for collisions than do the middle-aged. Numbers verify that teenagers are involved in a substantially higher number of fatal and nonfatal crashes than other drivers. The often transient lifestyle, attitude, and lack of maturity of those under 30 also contribute to collisions. Additionally, senior citizens are higher risks to insure because their reaction time typically slows as they grow older, and a subtle, gradual deterioration of motor skills and abilities occurs behind the wheel.

B. Type of Car - Vehicles with high market values and sticker prices garner larger insurance premiums, as the replacement of those vehicle types is more expensive. Furthermore, certain vehicles are more prone to theft due to the high demand of their replacement parts. Sports cars are often quite cost prohibitive to insure due to the fact they are purchased for their power, handling, and speed... a formula that may also lead to a collision.

C. Motor Vehicle Record - It is proven that prolonged unsafe driving will lead to traffic citations. Traffic citations signify unsafe driving, and the assumption is that collisions will soon follow. Since collisions lead to insurance claims, a poor driving record is a good way to see your insurance rates soar. A historical record of traffic collisions or citations will lead to substantial increases in insurance rates.

D. Marital Status - Statistically, single people are more likely to be involved in traffic crashes than those who are married. Companies know this fact and rate people accordingly.

E. Smoker/Nonsmoker - People who smoke are more likely to have higher insurance rates than those who do not. Smokers do not always keep both hands on the steering wheel, so they are in less control of their vehicles. There is potential to drop hot ashes, a lit match, or a lighter that can result in a collision or loss of vehicle control. Consequently, insurance rates tend to be higher for smokers because the likelihood of a collision is greater.

F. Location - It is a fact that in certain Nevada cities, over 50% of all drivers on the roadways do not have insurance. The chances of involvement in a collision with an uninsured motorist are thus higher in these cities. Other areas might have high traffic density and a greater number of traffic collisions. Insurance companies will base premiums on these factors and the probability of a claim deriving from the city in which you live.

Insurance Companies - Rated or Admitted

You need to be aware that many insurance companies in Nevada not rated by the state still choose to offer liability insurance to drivers. The rated or “admitted” companies have met all the requirements and guidelines as prescribed by the insurance commission and are consequently rated for reliability, among other factors. Motorists insured with admitted companies are dually covered by a fund controlled by the state, which would cover them in case their insurance company were to become insolvent during a pending claim. Admitted companies contribute to this fund, while non-admitted companies do not. It is your responsibility to ensure that your own insurance company or underwriter complies with state regulations. Coverage with an insurance company that is non-admitted exposes you to the risk of nonpayment of claims and insufficient overall coverage.

A collision or accident is when you injure yourself or another person or cause any property damage while driving your vehicle. A collision can occur with another vehicle that is in motion or even a parked vehicle. Leaving the scene of any collision is a CRIME! The following is a list of things you must do if involved in any collision:

The first thing you must do is STOP at the scene. If your vehicle is in a place where it may cause another collision, then move it. If the vehicle is not in a dangerous spot, leave it there until a law enforcement officer tells you to move it. In an accident involving only property damage, you must move your vehicle out of traffic if you can do it safely.
If anyone is hurt in a collision, call for an ambulance right away. An injured person should not be moved, and a victim in shock should be kept as warm as possible. If there is no pulse, a properly trained person should administer CPR.
Call the police.
At night or in bad weather, you need to warn other drivers by using flares, reflectors, or flashlights.
The following information should exchanged with all involved parties: your name, your address, driver's license number, vehicle identification number, plate number, the name of your insurance company, and policy number.
If you are involved in a collision with an unattended vehicle or other property, you must provide the above listed information on a note for the owner.