Auto Insurance Requirements in Nevada and Their Impact on Personal Injury Cases

Nevada’s roads are busy, and accidents can happen when you least expect them. Whether you’re a lifelong Las Vegas local or new to the Silver State, understanding Nevada’s auto insurance requirements is essential—not just for legal compliance, but for your own protection in case of a personal injury accident. 

At Ahlander Injury Law, we believe that informed drivers are empowered drivers. Let’s break down what’s required, what’s recommended, and how all of this shapes the outcome of personal injury claims.



Nevada’s Minimum Auto Insurance Requirements

Nevada law mandates that all drivers carry a certain amount of auto insurance. These are known as “minimum liability limits,” and they exist to ensure that, in the event of an accident, there’s at least some financial coverage for injuries or property damage. The state minimums are:

• $25,000 for bodily injury or death of one person in any one accident
• $50,000 for bodily injury or death of two or more persons in any one accident
• $20,000 for property damage per accident

These minimums are sometimes referred to as “25/50/20” coverage. Driving without at least this minimum coverage can result in hefty fines, license suspension, and even vehicle impoundment. So, compliance is not just about protection—it’s about avoiding serious legal consequences.

Optional Coverages: Going Beyond the Minimums

While the law sets the floor, it doesn’t set the ceiling. Many Nevadans choose to purchase additional protection. Optional coverages can include:

• Uninsured/Underinsured Motorist Coverage (UM/UIM): This protects you if you’re hit by a driver who has no insurance or not enough insurance to cover your damages.
• Medical Payments Coverage (MedPay): This helps pay for medical expenses for you and your passengers, regardless of fault.
• Comprehensive and Collision Coverage: This covers damage to your own vehicle from accidents, theft, weather, and other non-collision events.
• Rental Reimbursement and Roadside Assistance: This is for added peace of mind.

While these coverages aren’t required, they can influence how certain claims are handled, especially when the at‑fault driver has limited or no insurance. Up to 10% of drivers in Nevada are uninsured, which can make UM/UIM coverage especially important.

How Insurance Requirements Affect Personal Injury Claims

When you’re injured in a car accident in Nevada, the at-fault driver’s insurance policy is usually the first place to turn for compensation. Nevada is an “at-fault” or “tort” state, which means the driver who caused the accident (and their insurer) is responsible for paying for damages.

However, the minimum required coverage may not be enough to fully compensate injured parties, especially in serious accidents. If damages exceed the policy limits, victims may need to pursue additional compensation through their own insurance or, in some cases, by suing the at-fault driver personally.

For example, if your medical bills and lost wages total $40,000, but the at-fault driver only carries the minimum $25,000 for bodily injury, there’s more than a $15,000 gap, especially since pain and suffering also needs to be compensated. If you carry UM/UIM coverage, your own policy can help cover the difference. Without it, you may need to rely on other legal avenues to pursue compensation, depending on the circumstances.

The Role of Insurance in Lawsuits and Settlements

Insurance coverage (or the lack thereof) shapes every stage of a personal injury case.

Settlement Negotiations

Insurers often try to settle claims quickly, especially when injuries are severe and policy limits are low. They may offer the policy maximum as a “full and final” settlement. It’s crucial to know what your claim is truly worth before accepting any offer. At Ahlander Injury Law, we help clients evaluate whether a settlement is fair and explore all available sources of compensation.

Litigation

If a fair settlement can’t be reached, the case may go to court. Juries may award damages that far exceed the at-fault driver’s insurance limits, but collecting those additional amounts can be difficult if the defendant lacks resources. This is why insurance coverage is so central to real-world outcomes in personal injury cases.

Stacking Policies

In some scenarios, multiple insurance policies can be “stacked” to increase available coverage. For instance, if you have multiple vehicles insured under the same policy, your UM/UIM coverage may be multiplied. 

However, Nevada law and individual policy language govern whether stacking is allowed.

What Happens If the At-Fault Driver Is Uninsured?

Despite legal requirements, not every driver on Nevada roads is insured. If you’re in an accident with an uninsured or hit-and-run driver, your options depend on your own policy. UM/UIM coverage can offer another potential source of compensation when the at‑fault driver has no insurance or too little to cover your losses. Without UM/UIM coverage, recovering compensation may require a different approach under Nevada law.

Tips for Protecting Yourself and Your Family

While meeting the state minimums is required, many drivers choose higher limits or additional coverages for added financial protection. Medical costs, lost wages, and other damages can add up quickly after a serious crash, and insurance is only one piece of the recovery process. Knowing your legal rights and the full range of compensation options is just as important.

If you need help after an accident, Ahlander Injury Law offers free consultations and can walk you through your options without obligation. Reach out today to discuss your case.