Liability Insurance 101:
By many estimates, 80% of accidents occur when a driver is distracted. Between damage to the vehicles involved, medical bills and any other property damage that may occur, a single car accident can add up to a hefty bill – a bill that most drivers will not be able to cover if they are responsible for a collision.
For this reason, most states require that their drivers carry liability auto insurance. Keep reading to learn more about this type of coverage and to determine whether the minimum limits are enough for you.
What Is Liability Insurance
As a Nevada driver, the minimum amount of insurance that you legally have to carry helps cover the costs of any bodily injuries or property damage that results from a collision that you caused. This type of insurance exclusively covers the damages done to the driver that you hit; it does not cover any repairs to your own vehicle, nor can it be used for your own medical bills or lost wages.
♦ About Bodily Injury Coverage
Bodily injury liability coverage covers any hospital bills, funeral and burial expenses, loss of income and pain and suffering incurred by the person that you hit. This type of insurance may also be used to cover legal fees if you are sued.
♦ About Property Damage Coverage
If you are responsible for a car accident, then the property damage coverage would pay for repair or replacement costs for the other person’s property. This could include their vehicle, anything that you hit on their personal property, such as a fence or mailbox, or any belongings inside of their vehicle.
Once again, it’s important to note that liability coverage is used to bring the other person, not you, back to pre-accident condition. Collision or comprehensive insurance can be added to your policy to ensure that in the event of an accident, your own repairs and medical bills will be covered.
