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What Higher Insurance Coverage Minimums Mean For Accident Victims

You may have been reading about a bill in the State Assembly which would raise the amount of liability insurance that Nevada drivers would be required to purchase in order to drive in the state. AB120 would raise the minimum level of liability insurance coverage from $15,000 to $50,000 per driver. The legislation is currently being debated by Nevada lawmakers.

The downside to this bill is that insurance premiums for drivers will go up because these people will be forced to purchase stronger auto insurance policies. Insurance industry executives say that these premiums could jump by as much as 54% for some individuals.

Here’s what this bill means in layman’s terms: right now, if you are injured (or killed) in a motor vehicle accident in Nevada by a driver with the minimum amount of liability coverage, then the insurance company will not pay you any more than $15,000 – even if your medical expenses exceed that amount. Under the new legislation, that maximum amount would be raised to $50,000.

So for instance, if you sustained a fractured rib and a broken arm in a motor vehicle accident, the costs you would incur from ambulance charges, hospital expenses, physical therapy, and lost time at work could easily exceed $15,000. However, a $50,000 policy might very well cover all of your costs associated with this type of accident. But if the at-fault driver’s insurance policy won’t pay for all of your medical costs, then your next option is to file a personal injury lawsuit against the driver and/or the insurer (depending on the circumstances of the case).

This brings us to another possible consequence of AB120. Insurance companies make money like any other business: by maximizing revenue and minimizing costs. One large portion of the costs incurred by insurers is the money they pay out to accident victims.

So if this bill passes, the maximum payout amount for injuries sustained in any accident in Nevada would more than triple. As a result, insurance companies are likely to respond to this cost increase by contesting more accident claims and vigorously defending personal injury lawsuits. That’s why you need to have a qualified auto accident lawyer fighting for your rights and the compensation to which you are entitled.