Nevada Auto & Property Coverage Requirements
This chapter covers the coverage rules a Nevada producer must know to place personal lines correctly: the compulsory auto liability limits, the state's continuous-insurance requirement, and the role of uninsured/underinsured motorist coverage.
Compulsory Auto Liability Limits
The Nevada Division of Insurance (doi.nv.gov) states that Nevada requires minimum auto liability of $25,000 bodily injury per person, $50,000 bodily injury per accident, and $20,000 property damage per accident — a 25/50/20 limit — effective July 1, 2018. These are minimums; insureds may and often should buy higher limits. Because the legislature can raise minimums, verify the current figures with the state before quoting them as fixed.
Continuous Coverage and Lapse Enforcement
Nevada ties insurance to registration: the Division of Insurance notes that all active vehicle registrations must have continuous liability insurance. If coverage lapses, the DMV can issue an insurance-lapse notice and impose reinstatement fees or suspend the registration until the owner shows current coverage. Producers should caution clients never to cancel an existing policy until replacement coverage is in force.
Uninsured/Underinsured Motorist and Claim Handling
Uninsured/underinsured motorist (UM/UIM) coverage, described by the Division of Insurance, pays the insured's own injury damages when the at-fault driver has no insurance or not enough. Nevada follows the traditional at-fault liability approach for auto claims, with UM/UIM protecting the policyholder when the responsible driver is uninsured or underinsured. Whether UM/UIM is mandatory or must be offered, and at what limits, is set by statute — confirm current rules with the Division of Insurance.