Liability coverage helps cover the costs of any bodily injuries or property damage that results from a collision that you caused (when you are at fault). 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.

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 insurance. Keep reading to learn more about this type of coverage and to determine whether the minimum limits are enough for you.

There are no shortages of dangers and distractions when you’re behind the wheel of a vehicle, and even the most conscientious driver may find themselves responsible for an accident now and again. At some point “liability insurance” (which all Nevada drivers are required to carry), may keep you from having to pay for damages from an accident you caused. Keep in mind, however, your policy will only cover you up to your auto insurance policy limit. This insurance not only pays the repair or replacement costs of the vehicle that you hit, but it can also take care of any repairs that may be necessary if you run into someone’s fence, mailbox, their home, or their person. Having enough liability coverage if you put someone in the hospital (keeping them from being able to work), or their pain and suffering is going to be very important.

How Much Coverage Does Nevada Require?

Like most states, Nevada requires that its drivers have liability insurance. This covers the other person you are responsible for when YOU hit THEM; when you are the “at fault” driver. In Nevada, minimum coverage is 25/50/20, meaning that drivers are required to carry insurance that will cover $25,000 of bodily injury for one person, $50,000 of bodily injury for multiple people and $20,000 of property damage.

♦ As a Nevada resident, you are required to carry “liability insurance”, which is used to pay for any:
“Bodily injury” (hospital bills including any pain or suffering or lost time at work).

♦ “Property damage” (to their car or property) that may result from an accident that you caused.

How Much Liability Insurance Do I Have?

Your auto insurance policy expresses your liability coverage in three numbers, for example, 25/50/20, which tells how many thousands of dollars you have in coverage. So, 25/50/20 is really $25,000/$50,000/$20,000.

♦ The 25 in the 25/50/20

If you are responsible for an accident that caused bodily injury to someone else, your liability insurance will cover up to $25,000 of medical expenses for 1 person in the other car.

♦ The 50 in the 25/50/20

If multiple people are injured in an accident that you were responsible for, your insurance would cover up to $50,000 of the total medical expenses.

♦ The 20 in the 25/50/20

If you damage someone’s vehicle or personal property in a collision, up to $20,000 of damages would be covered by your insurance

Bodily Injury Coverage

Bodily injury liability can cover a variety of expenses. If the person that you hit requires hospitalization, skilled nursing care, surgeries, therapy or medication, those medical expenses would be covered by your liability insurance. Additionally, if that person misses work because of an accident-related injury, lost wages can be claimed under liability insurance, as can compensation for pain and suffering. If the accident results in a fatality, funeral and burial expenses would also be covered by your insurance. Your liability coverage may be used to cover legal fees if the person that you hit decides to sue you for damages.

Your bodily injury liability coverage is comprised of two parts, which are generally written out like 25/50 or $25,000/$50,000. The first two numbers refer to your “bodily injury” coverage. The first number states how much your auto insurance will pay out for bodily injury to a single person involved in the car accident. This means the other driver’s body and his/her passengers would be covered up to $25,000 for the other driver or any one person injured.

The 2nd number 50 would cover all people injured in any one accident. The second number tells you the limit of what your insurance will pay out if multiple people are hurt in an accident that you caused. In other words, whether two people or ten people were injured in an accident that you were responsible for, your insurance will pay out no more than that number. Using our example, this would be $50,000. This 2nd number would be “per occurrence”.

The first 2 numbers, the 25/50 includes medical bills, pain and suffering, lost time at work and may be used to cover legal fees if you are sued.

It’s important to remember that your policy limit is simply the maximum amount that your insurance will pay out. If the expenses from bodily injuries exceed your policy limits, you can then be held financially responsible for the rest.

continued below ⇓

Property Damage Coverage

The last number 20 tells you how much “property damage” coverage you have. Using our example 25/50/20, if you damage someone’s vehicle or personal property in a collision, up to $20,000 of damages would be covered by your insurance. 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

Don’t Skimp On Property Damage

We find that many drivers primarily focus on bodily injury and are underinsured for Property Damage. Property Damage is the 3rd number in the 25/50/20 number sequence you see on policies. We believe increasing that last number is so important; here’s why:

If you’re driving and hit someone else’s car, or property, here’s what could happen. Let’s say you hit someone that owns a 2021 Honda Civic, and it turns out that the damage is worth $26,000. You also hit a brick wall that needs to get repaired, which is estimated to be $2,000. If you have the bare minimum (Nevada requires 25/50/20), the 3rd number being 20 (which means $20,000 dollars), how are you going to cover your $28,000 accident?

What if the scenario is a little different? What if you hit a 2023 BMW 5 Series 530i Sedan that starts around $60,000, plus add in the $2,000 brick wall you took out. If you had 100/300/50 coverage, you would end up owing $12,000, but the first driver with 25/50/20 coverage would owe $48,000!

With more coverage (which is not much of an increase to your premium), you could reduce your chances of owing money and/or being sued. You can’t control who you have an accident with (it may be a $5,000 car or a $60,000 car), but you can control how much property damage and liability coverage is on your insurance policy.