Auto collisions are common occurrences in Las Vegas, and even the most cautious drivers may suffer the repercussions of colliding with a foreign object, such as another car. Sadly, even a small accident might result in significant financial losses. Auto collision coverage can help you save money on repairs and replacements by lowering your out-of-pocket costs. Instead of paying for the damages by yourself, you'll simply have to cover your deductible, and your automobile insurance will cover the rest.

Although collision insurance isn't compulsory in Nevada, it is usually required by creditors when you lease or finance a vehicle. Here's a rundown of what auto collision insurance will and won't cover, as well as how to determine if it is worth the investment.

When Does Nevada Collision Insurance Apply?

Collision coverage covers any damage to your car caused by a collision, irrespective of whose fault it was. It is can be applied when:

  • You get hit by another driver
  • You hit another car
  • You crash into something stationary, like a tree, pole, or a fence
  • Your car rolls over

Even though auto collision insurance is optional in Nevada, you must buy it as extra insurance and pay a different premium on top of your compulsory Nevada bodily injury liability coverage (which pays for medical bills) as well as property liability insurance. Typically, the insurance coverage limit is equal to the vehicle's value.

Collision insurance, unlike some of the other types of Nevada auto insurance, has a deductible. Generally, the larger your deductible, the lesser your monthly insurance charge will be.

What Nevada Collision Insurance Covers

In Nevada, collision insurance coverage pays for any expenses for car repairs that surpass your deductible, but not for any hospital bills.

If the cost of fixing your car exceeds its worth, collision insurance will pay you the actual market value of the car (minus your deductible). Negotiation is common when determining the fair market price of the vehicle.

Additionally, if you have been involved in a car accident and another motorist is responsible, their property damage liability insurance policy will cover your vehicle's damage. If they have their property damage liability coverage, you will file a claim with their insurance company first. 

When it relates to financial liability for damages resulting from an automobile accident, Nevada adopts a conventional "fault" mechanism to cover injuries, lost wages, car damage, among others.

This implies that the driver who caused the accident is also accountable for any damages that ensue (in practice, the at-fault motorist's insurance company will cover these damages up to coverage limits).

Anyone who sustains any form of injury or damages as a result of a car accident in Nevada can take the following steps:

  • File a claim with their insurance carrier, if the damage is insured under the plan (in this case, the affected driver's insurance provider will almost certainly seek a subrogation action against the other driver's insurance company)
  • Submit a third-party case to the at-fault motorist's insurance company, or
  • Submit a personal injury claim against the other driver in a civil lawsuit

However, many states have low minimum limitations, for example, $5,000 or $10,000. A motorist with only the state-mandated property damage coverage would not have enough insurance to cover a newer car if it was totaled. The collision insurance would have to kick in after that.

It's one of the reasons why, whether you're financing or leasing a car, lenders need collision as well as comprehensive coverage: If your automobile was totaled soon after purchase, you may be in default on your car loan, owing thousands of dollars. Collision car insurance and comprehensive car insurance, when paired with liability coverage, are commonly considered full coverage.

What Isn’t Covered By Collision Insurance?

Collision car insurance will pay for damage to your car even when you're at fault, however, there will be instances when you will not be completely reliant on it. The following items are not covered by your collision insurance:

  • Any damage to the other driver's car
  • Damage caused by a collision with an animal or pedestrian
  • Damages as a result of natural disasters, weather, fires, or theft
  • Costs of bodily injuries for anybody hurt in your or another car

There are alternative coverage options should you want coverage that addresses the scenarios outlined above. When you're to blame for a car accident, liability insurance, for instance, will cover the costs of physical damages and bodily injuries. A comprehensive insurance plan may be appropriate when you want coverage for catastrophic events, severe weather, or theft.

Comprehensive VS Collision Car Insurance

Comprehensive and collision car insurance policies are two popular types of coverage that can assist you in covering the costs of car damage. There are, nevertheless, major distinctions between them.

Damages that happen due to events beyond your control, particularly when you are not driving the vehicle, are covered by comprehensive insurance. Examples include theft, vandalism, fire, severe weather, or accidents that involve animals, such as a mule deer.

Comprehensive insurance will pay for the repair costs, less your deductible, when a pole falls on your vehicle or your automobile is destroyed during a storm. However, collision insurance only covers damages that occur when you're driving your car and it collides with a stationary object, such as a tree.

Please remember that coverage specifics differ by company as well as state, so consult with your insurance representative or agent to find out what is and isn't included under any given policy. This could depend on state legislation or your insurance company's policies.

How Collision Insurance Deductibles Work

Typically, collision insurance coverage is dependent on a deductible, which is a predetermined sum deducted from a collision claim payment. You can pick your deductible sum, which commonly varies between $250 and $1,000.

For instance, suppose you veered off the road to avoid striking a dog but rather struck a lamppost, and you have a $1,000 collision deductible. The cost of repairing the damages to your vehicle would be covered by your insurance provider, minus the $1,000 deductible.

If the damages were below the $1,000 deductible, you shouldn't file a claim since your insurance provider won't pay, and will most likely raise your premiums as a result of the claim.

If the accident wrecked the car, your insurance provider would deduct $1,000 from the vehicle's approximate worth before the collision and give you a check for that sum.

The deductible will also apply when your automobile was still roadworthy but the damages were too expensive to fix, and the insurance company declared it destroyed. You may still fix your car, but its title will be listed as salvage. Other insurers refuse to cover salvaged vehicles or impose a higher premium when they do.

Getting your Collision Deductible Reduced or Waived

Please note that the collision deductible remains relevant even if you aren't at fault and another driver's insurance isn't enough to pay for the damages, and you don't have uninsured or underinsured motorist insurance.

If paying to repair the damage created by another driver seems unreasonable, you might need to consider incorporating a collision deductible waiver into the policy. This waives the deductible when an uninsured motorist causes a collision and the collision insurance is required to pay. This is only offered in a few states.

Another method of reducing your collision deductible obligation after a collision is by adding "disappearing deductibles'' to your plan. Some car insurance providers may lower the deductible by a specific amount, usually $100 for every year that passes without you being involved in an accident or getting a ticket. Specifications vary by provider, but it usually costs more and isn't always worth it if you do not even get into a car accident.

The Cost of Nevada Collision Insurance

As per the National Association of Insurance Commissioners, the average yearly cost for car collision insurance in the United States was around $363 in the year 2017. In 2021, the average cost of collision insurance in Nevada was $366. Because this figure incorporates discounts and might consider group insurance, which is normally less expensive than personal coverage purchased online, your actual costs could be higher.

You may not be eligible to purchase collision insurance if you have no comprehensive coverage, or vice versa, based on the insurer. It could be due to an existing lease or loan that necessitates both, or since your insurer mandates you to buy one before you can buy the other.

Since collision cases are more prevalent, collision insurance is typically likely to be more expensive than comprehensive coverage. Higher deductibles could help you save money on your insurance premiums, provided you can afford the out-of-pocket expenses.

Do You Need Collision Insurance?

Collision coverage, like your vehicle, loses value with time since it never pays out any more than the car's value. Collision insurance gradually loses its value if you do not have a lease or loan that requires it, costing you extra to maintain than it would give you in the case of a collision.

Are you unsure when it's time to get rid of your collision insurance? Begin with the valuation of your automobile as well as your deductible to see if it's good enough to justify the money you're spending on it. If your collision deductible is $1,000, it isn't worth it to pay for collision insurance on a car worth less than $1,000. 

Then, it's essential to sort out how much collision coverage will cost you. If it is not on a current bill, check the declaration page of the auto policy, which is usually among the first items. When the value of collision insurance plus the deductible exceeds the worth of your automobile, you won't get any compensation if your vehicle is totaled.

Here's how it works:

  • Deduct the collision deductible from the value of your vehicle. That's the maximum amount you can receive from any collision case. If you could somehow come up with that kind of money yourself, you can reduce your coverage, understanding that you'll be responsible for the damages to your vehicle in the event of a collision
  • Deduct the sum above from the price of collision coverage for the full length of the plan, which is normally six months. That's the maximum worth of the collision insurance – the amount you'd get if your automobile was totaled, taking into account the costs of insurance

If the figure is:

  • Negative, then you're paying for more for car collision coverage than what it's worth
  • Little but significant, the insurance can still help you, but a case for a complete loss could only be valued at this much after you account for the costs of insurance. As a result, you may choose to risk terminating it now to save money on premiums
  • Massive and positive, maintaining collision insurance is logical. If your automobile is wrecked, the coverage will pay a huge sum, higher than you have spent on the insurance coverage

Furthermore, having collision insurance is logical if you can't raise the sum from step one during an emergency. Remember that if your automobile wasn't wrecked, the claim payment would be below the initial figure you projected.

Even though you determine that collision insurance is justified, for the time being, you should reassess the math as your vehicle ages and whenever you receive car insurance rates.

Is Collision Insurance Required for an Older Vehicle?

Most likely not. The insurance will only cover up to the present fair value of your vehicle, deducting the collision deductible. Collision coverage will not pay out a lot, if anything, in a complete loss because older automobiles often have a lower market value. However, before determining whether or not to keep your auto insurance, do some research on its value.

Find a Las Vegas Personal Injury Attorney Law Firm Near Me

If you or a loved one has been injured in a car accident in Nevada, you can contact the Las Vegas Personal Injury Attorney Law Firm for a free consultation.

Our knowledgeable Las Vegas Personal Injury attorneys can assist you in determining who, and also to what degree, another driver is liable for the damages following a car, motorcycle, or truck accident in Nevada. We serve the city of Las Vegas. Call us today at 702-996-1224 to schedule your free consultation.