Auto Insurance Policy in Nevada

November 13, 2017 · Posted in General 
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An operator’s policy is different from standard liability insurance. This auto insurance coverage insures the driver, not the car. That is, the driver would be insured no matter what vehicle was driven. This auto insurance coverage does not cover another person driving your car with or without your consent. According to Nevada Revised Statute 485.186, another important requirement of an operator’s policy is that the number of motor vehicles that the policyholder owns must be greater than the number of persons in his household who possess a driver’s license. Therefore, each person in his household who possesses a driver’s license is covered by the operator’s policy of liability insurance. This type of auto insurance is intended primarily to serve the needs of automobile collectors. 

You should be aware that an auto insurance in Nevada policy is a legal contract. It is written so that your rights and responsibilities, as well as those of the auto insurance company, are clearly stated.

When you purchase auto insurance, you will receive a policy. You should read that policy and try to understand its contents. If you have questions about your auto insurance policy, contact your auto insurance agent for clarification. If you still have questions, call the Nevada Division of Insurance.

Mid-Term Cancellation of Your Policy

Nevada laws restrict the mid-term cancellation of your policy. If the company cancels your policy, the premium will be prorated without any penalty to you, but the reason for cancellation must be in compliance with Nevada Revised Statute 687B.320. However, if you cancel the policy, there is normally a “short rate” penalty that usually amounts to about 10% of the return premium. If the policy is canceled early in the term, the penalty is greater than if it is canceled late in the term. Policies regarding early cancellations and refunds vary from auto insurance company to auto insurance company.

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