GLOSSARY OF TERMS
An explanation of the terms found on your insurance policy ‘Declarations Page’.
Bodily Injury Liability (REQUIRED BY NRS 485.3091) is an insurance coverage which is utilized when a person is legally responsible for injuring other people in an auto accident. In the State of Nevada, the state minimum policy limit for one person injured in an accident is $25,000 and for two or more people a minimum policy limit of $50,000 is required.
Property Damage Liability (REQUIRED BY NRS 485.3091) is an insurance coverage which covers the cost of repairs when a person is legally responsible for a car accident that damages another vehicle or property such as a fence or residence. It is important to note that Property Damage Liability coverage usually does not cover damage to your own vehicle. In the State of Nevada, the state minimum policy limit for Property Damage Liability in an accident is $20,000.
Uninsured/Underinsured Motorist (OPTIONAL COVERAGE) Uninsured Motorist is an insurance coverage which is utilized you if you're in an accident with an at-fault driver who doesn't carry liability insurance. Also, underinsured motorist is an insurance coverage which applies when you're in an accident with an at-fault driver whose liability limits are too low to cover the damage(s) or medical expense(s). According to the Insurance Information Institute in 2015, nearly 11% of all drivers in the State of Nevada operate their vehicle without insurance coverage. As such it is critical that policyholders include this coverage if they operate their vehicles in the State of Nevada. More importantly, even after a claim is filed against your medical payments coverage, your policy premiums will not increase!
Medical Payments (OPTIONAL COVERAGE) Medical payments coverage generally pays for medical costs after you are hurt in a car accident, regardless of fault. Again, even after a claim is filed against your medical payments coverage, your policy premiums will not increase!
Comprehensive (OPTIONAL COVERAGE PER NRS, BUT MAY BE REQUIRED BY FINANCE COMPANY) Comprehensive insurance coverage covers the repair/replacement cost of your vehicle if it is damaged (in an incident not defined as a “collision”) or stolen. In most instances it also covers you in the event of fire, vandalism, or falling objects (such as a tree).
Collision (OPTIONAL COVERAGE PER NRS, BUT MAY BE REQUIRED BY FINANCE COMPANY) Collision insurance coverage is utilized after an accident has occurred with another motor vehicle or inanimate object (such as guard rail).
For additional clarification of insurance terminology, please contact Quincy Branch, President & CEO of The Branch Co. at (702) 646-2082