Every state has their own rules and regulations regarding their auto insurance requirements. Some states have more sophisticated systems in place to ensure that drivers there are properly insured. Nevada car insurance companies utilize a system called the insurance verification process (IVP). This statewide program requires that all licensed insurance companies report the status of each of their carriers every month. This way, the state is informed if you should drop your Nevada car insurance while your vehicle is still registered.
If you decide to change insurance companies, the state will be informed by your former carrier that you have cancelled your auto insurance. At this point, a verification process begins, instigated by the state, to give you the opportunity to prove that you have insurance through another carrier. You will receive a notice via the mail asking that you provide proof of insurance through your new carrier or that you have sold the car (or moved out of state if that applies). You have 20 days to respond to this request; if you choose not to respond then your registration will automatically be suspended.
If you allow your Nevada car insurance policy to lapse and continue to drive your vehicle while the registration is suspended, the Nevada police department can write you a ticket for up to $250, and you face the possibility of having your license suspended. If you are in an accident and you are not insured then you will be responsible for all the fees associated with the accident (if you are the cause of the accident) and you will also be ticketed and fined by the police department.
If you allow your insurance to lapse and purchase new insurance after the 20 days are up then you will have to re-register your vehicle. The cost of doing this is $250; however, if you have proof that your insurance lapsed while your vehicle was dormant (you were unable to drive due to injuries or the vehicle was not running properly, etc.) then you will be able to re-register your vehicle for $50 instead of the larger sum of money.
Because Nevada is a tort state, you must carry insurance on your vehicle to cover the costs of any accident that you cause. Tort means that the people that you have injured (or whose vehicle you have damaged) can legally seek reparation of damages from you. In other words, if you do not carry the proper amount of insurance, they can sue you for the difference and win.
While many people believe that they cannot afford Nevada car insurance premiums due to the poor economic climate, the truth is they cannot afford to be without it. One accident can create a financial downfall that you may not be able to recover from if you drive without auto insurance.
The average cost of auto insurance in Nevada is $75 a month and the minimum requirements for coverage are:
Comprehensive coverage is recommended for all drivers, however as long as you maintain the minimum requirements for Nevada car insurance, then you can legally drive in The Silver Sate.