New Bill Would Drive Up Liability Limits in Nevada

In Nevada, a local lawmaker is pushing for higher limits on car insurance coverage. Assemblyman William Horn is sponsoring the new bill, also referred to as Assembly Bill 120, which, if passed, will more than double car liability limits and drive car insurance coverage rates up by almost $300 annually in some areas.

Lawmaker Did Not Have Enough Coverage
Interestingly, Assemblyman Horn has admitted to a personal reason for the bill. Last year, he was injured in an auto accident caused by a driver who only had the minimum liability coverage. To make matters worse, Horn did not have enough car insurance coverage for his own medical bills. The Assemblyman pointed out that as his injuries weren’t life threatening, he was lucky. Whereas every day, drivers are much more seriously injured in accidents with underinsured or uninsured drivers and left to pay their medical bills themselves when their own car insurance coverage isn’t sufficient.

Impact on Car Insurance Rates
If the bill is passed, the current car insurance coverage minimum will be raised from $15,000 to $30,000, and from $30,000 to $100,000 respectively, depending on the number of injured victims. Car insurance coverage limits for property damage will be tripled. All of this obviously has implications for drivers, but also for auto insurance providers, who will be forced into paying out higher claims.

Reactions Split into Opposing Camps
Supporters of the bill claim that it’s time to raise car insurance coverage limits, as they have remained unchanged since 1958 and don’t reflect the reality of modern insurance needs. Opponents, however, are convinced it will lead to more uninsured drivers because many Nevada drivers are having a hard enough time paying their current car insurance premiums.