What Does “Collision Insurance” Cover in a Nevada Car Accident Case?

Collision insurance” covers car repair bills after an accident in Nevada or, if the car is “totaled,” the fair market value of the vehicle. It applies regardless of which driver is at fault.

Nevada law collision insurance optional. However, experts generally recommend purchasing it if the value of your vehicle exceeds the amount of the premiums you will pay over the next five years.

Collision insurance differs from “comprehensive” car insurance which covers damages to a vehicle caused by something other than a collision (such as hail, theft, fire, vandalism, or animals).

Collision and comprehensive coverage are often sold together and referred to together as “physical damage coverage.” They can be purchased to cover you in the event of a car accident, a truck accident, or a motorcycle accident in Nevada.

To help you better understand Nevada collision insurance coverage, our Las Vegas personal injury lawyers discuss the following, below:

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1. When does collision insurance apply in Nevada?

Collision coverage pays for damage to your vehicle resulting from a collision, regardless of who is at fault. It applies when:

  • You are struck by another vehicle;
  • You strike another vehicle; or
  • You collide with a stationary object, such as a pole, tree or fence.

Collision coverage is optional in Nevada. You must elect to purchase it and pay a separate premium in addition to your mandatory Nevada bodily injury liability insurance and property liability insurance.

Unlike many other forms of Nevada car insurance, collision insurance has a deductible. In general, the higher a deductible you choose, the lower your monthly premium will be.

2. What does Nevada collision insurance cover?

Collision coverage in Nevada covers all costs of repairing your vehicle that exceed your deductible.

In the event that the costs of repairing your vehicle exceed its value, collision coverage will pay you the fair market value of the vehicle (less your deductible) instead.

The fair market value is often subject to negotiation. It can be established by reference to objective sources such as Edmunds.com or Kelly Blue Book.

In the case of a classic car, you must generally purchase special insurance. The value or a method of determining it will be agreed upon in advance – often based on an appraisal by the underwriter or a collectible car valuation guide such as the Old Cars Report Price Guide.

3. How do collision insurance deductibles work?

Your deductible is the amount you pay out-pocket before your collision coverage kicks in.

Example: Brad has Nevada collision insurance with a $500 deductible. While backing out of a parking space at Caesar's Palace in Las Vegas, he accidentally hits a car behind him. Brad sustains damage to his bumper that will cost $1,200 to repair. Because Brad's deductible is $500, he will pay $500 of this expense. His insurer will pay the $700 balance.
Note that if the other car sustains damage, Brad will have to pay it out of pocket or submit the claim to his insurer for payment under his property liability insurance.

Collision coverage is available in Nevada at several deductible levels, typically between $250 and $1,000. The higher your deductible the lower your monthly premium.

4. Is Nevada collision insurance worth the cost?

If your car is new or replacing it would be expensive, then collision coverage is usually well worth the cost, particularly if your vehicle is leased or financed.

On the other hand, it usually doesn't make sense to pay $1,000 in yearly premiums for collision insurance with a $500 deductible if your car is only worth $2,000.

Where the break point is for you depends on your tolerance for risk. However, experts generally recommend that you purchase collision insurance if the value of the premiums plus deductible you will pay over a five-year period is less than the current value of your vehicle.

In a car accident in Las Vegas? Call us for help…

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If you or someone you know was involved in a motor vehicle accident in Las Vegas, we invite you to contact us for a free consultation.

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