Collision insurance covers your car repair bills after an accident in Nevada. If your car is “totaled,” the policy covers the fair market value of the vehicle. It applies regardless of which driver is at fault.
Collision insurance policies are optional in Nevada. However, experts generally recommend purchasing it if the value of your vehicle exceeds the amount of the auto insurance premiums you will pay over the next five years.
Collision insurance differs from “comprehensive” car insurance which covers property damage 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 by insurance companies 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 Nevada personal injury lawyers discuss the following, below:
- 1. When does collision insurance apply in Nevada?
- 2. What does Nevada collision insurance cover?
- 3. How do collision insurance deductibles work?
- 4. Is Nevada collision insurance worth the cost?
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 motorist;
- You strike another vehicle; or
- You collide with a stationary object, such as a pole, a tree or a fence.
Collision insurance is optional Nevada auto insurance coverage. You must elect to purchase it as additional coverage and pay a separate premium as well as your mandatory Nevada bodily injury liability insurance (which goes towards medical bills) and property liability insurance. The coverage limit is usually the value of the vehicle.
Unlike many other forms of Nevada car insurance, collision insurance has a deductible. In general, the higher the 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, and not for any medical expenses.
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
In the case of a classic car, you must generally purchase special insurance from a car insurance company. 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. Premiums also depend on the policyholder’s driving record with the DMV.
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 breakpoint is for you depends on your tolerance for risk. However, car insurance coverage experts and insurance agents 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.
If you or a family member were involved in a motor vehicle accident in Nevada, we invite you to contact us for a free consultation.
Our experienced Las Vegas accident lawyers can help you determine who, and to what extent, someone else is responsible for your damages from your Nevada car, truck or motorcycle accident. We practice in Las Vegas, Reno, and throughout the state of Nevada.
To schedule your free consultation, call us or fill out the form on this page.
See our related articles on underinsured and uninsured motorist coverage and med pay insurance for medical expenses in Nevada.