Breaking Down The Different Parts of Auto Insurance
There are several different types of auto insurance available:
This insurance covers the OTHER driver
Liability Insurance covers damages to the other driver if you’re at fault for a collision. 25/50/20 is the Nevada State minimum.
Bodily Injury Insurance is the “25/50” the first 2 numbers of the 25/50/20 are the Bodily Injury numbers. This means up to $25,000 for the other person you hit for their medical bills and up to $50,000 total for all passengers in their car for medical bills. This is part of liability coverage.
Property Damage Insurance is the “20” the last number of the 25/50/20 is the Property Damage which covers the other person’s property. This could be their car, a brick wall, a park bench, anything you hit that is your fault. This is property damage liability coverage. Using this example, your policy would cover up to $20,000 for the other person’s property you are at fault for damaging.
This insurance covers YOU
Collision Insurance covers damage to your vehicle if you are responsible for an accident.
Comprehensive Insurance pays for damage to your vehicle that isn’t related to an accident, like theft, vandalism and natural disasters, etc.
Uninsured/Underinsured Insurance covers damage to your vehicle if you’re hit by someone that doesn’t have insurance or enough insurance. Also covers your pain and suffering and lost time at work if the other party did not have enough insurance to cover your bills. It offsets the other guys “at fault” lack of enough liability coverage, up to the amount on your policy.
Medical Payments Insurance only covers medical bills. It is insurance coverage for reasonable costs for necessary medical services due to bodily injury, usually covering you and your passengers, regardless of who’s at fault.
Note To Drivers:
If you as the driver are “at fault” – you are the liable driver. You cannot be liable to yourself. So your injuries would be covered under medical payments.
Your passengers, however, were not driving, so they are not liable. They could potentially be compensated under your liability.