Does Full Coverage Auto Insurance Cover Everything?
Adequate auto insurance coverage is important. Not only are all Nevada licensed drivers required by law to carry coverage, but in the event of a collision, your policy is what is standing between you and financial devastation.
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The term “full coverage” is one that often gets tossed around by drivers, but it’s probably not a term you’ll hear from your insurance agent. That’s because unlike minimum coverage, which is clearly defined, there is no set standard for what constitutes full coverage. When people talk about full coverage, they’re referring to a policy that will cover damage done to the other driver and to you, your vehicle, any towing and rental expenses, pain (medical) and suffering including lost wages (if you are at fault for the accident, of course).
Nevertheless, there really is no such thing as “full coverage”. Full coverage is the coverage options the policyholder wants covered. Provided the policyholder understand the coverage they want and are paying for, this could mean full coverage to that policyholder.
How Much Auto Insurance Do You Have to Have?
$25,000/$50,000/$20,000 effective 7/1/2018 and beyond.
What does this mean?
$25,000 for “liability” for the other driver you hit (lost wages, medical bills, pain and suffering)
$50,000 for all passengers, their lost wages, medical bills, pain and suffering
$20,000 for property damage (other guys car or other property)
But what about your car, your medical expenses and pain and suffering? What if the other driver you hit has a $100,000 hospital bill because of the accident you were at fault for?
Here’s Why You’ll Want More than State Minimum Auto Insurance
Liability coverage only covers the driver you hit. If you total your own vehicle in an accident and sustain bodily injuries that cause you to miss work for several days or even weeks, the financial burden will be yours alone to bear if you ONLY have liability state minimum coverage.
On top of that, minimum liability coverage may not be sufficient for covering all the damage from the accident. For example, if you’re at fault for a collision and you hit and total a $50,000 car, you’re responsible for providing financial compensation to the person you hit. If you have minimum coverage, your insurance will relieve $20,000 of that $50,000 burden, but you’ll be responsible for the rest. Do you have $30,000 in the bank?
Theoretically, if you have state minimum coverage, you could also end up paying the bulk of the medical bills for the other driver, the passengers, all their lost wages, their vehicle, and any other accident-related expenses, plus the injuries and property damage that you sustain in an accident.
What Types of Auto Insurance Coverages Are Available?
Fortunately, in addition to raising your liability coverage, you can get other types of insurance that will provide you with financial protection in the event of an accident.
As its name suggests, collision coverage will cover damages to your vehicle after an accident for which you’re at fault.
If your vehicle is damaged in an event other than an accident (like a flood, vandalism, or a wayward tree branch), your comprehensive coverage will help you pay for repairs.
Medical Payments (sometimes called Med Pay):
Med Pay is to help pay for medical bills if you and your passengers are injured in an accident no matter who is at fault.
Did you get hit by a driver whose insurance isn’t enough to cover the damages, or worse, they don’t have any insurance coverage? Uninsured/underinsured motorist coverage will pick up where their insurance leaves off, sparing you from having to take care of all your expenses.
Getting Auto Insurance Through Nevada Insurance Enrollment
When it comes to auto insurance, there’s no one-size-fits-all approach. Your Nevada Insurance Enrollment auto insurance agent can help you evaluate your driving habits and choose the coverage types and limits that are right for you.
Read More: Auto Insurance in Las Vegas, Nevada
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.