Auto insurance policies, like those typically written in Nevada, consist of many types of coverage bundled into one policy. While you might think buying auto insurance really comes down to price, it is very important you understand how each coverage type protects you and how much you should buy. Here is a summary and explanation of the different coverage available to you:
- Bodily Injury Liability: provides protection for you, the named insured, from claims of injury or death for which you are legally responible. This coverage is provided for “third-parties” meaning persons other than you, other drivers in your household or listed on your policy. Typically this is the occupants of the other vehicle, but could also be passengers in your vehicle that are considered third-party (non-household members or listed drivers).
- Property Damage Liability: similar to bodily injury coverage but pays only for damage to another persons property. This is typically the other person’s vehicle, but could also be a building, wall or any other tangible property that is not a person.
- Uninsured and Underinsured Motorist Liability: in the event you are injured by an uninsured or underinsured driver, this coverage provides for medical bills, lost wages, pain suffering compensation. You can reject this coverage but consider that around 15% of all drivers in the Las Vegas, Henderson and North Las Vegas area uninsured. A much larger percentage are probably underinsured, meaning they do not carry adequate limits of liability coverage to pay for injuries they may cause another person.
- Medical Payments: this is no-fault coverage that pays for injuries to you or any other person in the your vehicle. This can include first-aid at the scene of the accident and up to 90-days thereafter.
- Comprehensive: provides coverage for damage to your vehicle caused by things other than collision. Examples include vandalism, theft, glass damage and fire.
- Collision: provides coverage for damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. One exception to this is collision with an animal, which is covered by comprehensive.
- Rental Reimbursement: also known as loss of use coverage, this pays for the cost of rental vehicle if your covered automobile is stolen or disabled due to a covered loss.
- Towing or Roadside Assistance: pays for the cost of labor to perform a roadside repair or tow your vehicle to another location. This can either be reimbursement coverage where you pay for the service and then submit the receipt to the insurance company, or a roadside assistance plan where you call a toll-free number and a tow truck is dipatched to you.
For more information on purchasing automobile insurance in Nevada, please review the Consumer Guide to Auto Insurance published the Nevada Department of Insurance. Of course, you may also contact us to answer any questions about a new or existing policy.