The process of driving through the aftermath of a car accident is already stressful enough, so it may feel even more overwhelming to understand the legal aspects. A fundamental question that many people ask is, “Is Nevada a no-fault state as far as car accidents are concerned?” This issue directly affects your claims, who covers damages, and whether you can sue over injuries. The answer surprises many, and it significantly impacts the recovery of victims following a collision. To cast some light on this crucial difference, we examine the peculiarities of car accident laws in Nevada and see what rights you may have should you ever find yourself in this unfortunate situation.

What is an At-Fault State?

Before determining how Nevada deals with car accidents, it is imperative first to understand what an at-fault system, or a tort liability system, is.

In states using this system, the person found to have caused an accident is the one who is financially responsible for the damages and injuries incurred by other parties. This means that the victims of accidents have the inherent right to pursue financial compensation against the at-fault driver's insurance company. In case the negotiations with the insurer fail or are insufficient, the victims are still free to file a personal injury claim against the driver who acted negligently in civil court. This direct line of accountability is one of the key features of at-fault states, as it forces the responsibility of compensation to the party that caused the collision.

The at-fault system depends on the legal need to demonstrate negligence by the other driver to recover compensation successfully. This entails proving four crucial elements, namely:

  • Duty of care — The first issue is to prove that the other driver had a duty of care towards you, which is a duty that all drivers have to ensure the safety of other road users by driving safely to prevent harm to other people.
  • A breach of the duty of care — You must demonstrate that the driver has breached this duty. For example, the driver was speeding, running a red signal, or driving distractedly.
  • Proximate cause — You have to show that this negligence of duty was the immediate and proximate cause of the accident and your consequent injuries.
  • You suffered damages — You need to prove that you experienced real damages, including the cost of medicine, missed paychecks, broken property, and physical and mental suffering.

These aspects of negligence must be proven with substantial evidence. Police reports, which may include early judgments of fault and information on the accident scene, are a necessary starting point. The objective accounts and support of your version of events are important parts of a successful case and can be made by:

  • The testimony of witnesses who saw the collision
  • Photographic and video documentation of the scene
  • Medical records describing your injuries and how they were treated
  • Testimony by accident reconstructionists or doctors

Collecting and preserving this evidence as soon as possible after the accident is of utmost importance when it comes to proving fault and recovering the compensation that one deserves in an at-fault state.

The 51% Bar Rule in Nevada

Although Nevada is considered an at-fault state, its legal system adds a considerable twist to it with its modified comparative negligence rule, which is described in Nevada Revised Statutes (NRS) §41.141. The statute defines the allocation of damages in the case of several parties partially responsible for an accident. In this system, an injured party may still recover compensation even though they were partly to blame for causing the collision. However, their proportion of negligence will reduce their recovery. For example, if you are determined to be 20% liable in an accident, your overall damages will be reduced by 20%.

Consider an example where you have been in an automobile accident that causes $100,000 worth of cumulative damages, including medical expenses, lost wages, and repair expenses on your car. Assuming that after an investigation, it is established that you were 20% at fault in the incident (you were going a bit over the speed limit, but the other driver ran a stop sign), your recoverable compensation would be cut by 20%. In the given case, you would be entitled to get back only $80,000 ($100,000 less 20%). This proportionate reduction makes both parties pay in proportion to their contribution to the accident.

The key feature of Nevada's modified comparative negligence law, known as the 51% bar rule, is its strict legal threshold. Although minor contributions towards an accident do not completely bar recovery, it is dangerous to be held 51% or more at fault in a crash. When your share of fault equals or surpasses this percentage, you are legally denied any compensation, no matter how enormous your damages are. This means that even though you might have been seriously injured and incurred significant losses, a determination of 51 percent or more fault would render you solely liable for your damages. In effect, you would not have a claim against the other driver.

This 51% rule poses a significant challenge for the accident victims in Nevada, especially in complicated cases where the fault may not be evident at first but rather hotly contested. For example, when a car accident occurs in Las Vegas and includes more than two vehicles or when the situation is unclear, the percentages of fault are of great importance. A slight change in the allocated percentage of fault may be the difference between recovering a lot of compensation and nothing. It is therefore important that you prove a higher level of negligence on the other driver's part to seek recovery through the shared fault car accident laws in Nevada. Knowing this exact legal threshold is essential when it comes to personal injury claims within the state.

Minimum Threshold to Sue After a Nevada Car Accident

Another widespread myth often caused by the presence of no-fault states is that Nevada requires that an accident victim meet a particular monetary or injury severity requirement before he/she can file a lawsuit. This is, however, not the case in the at-fault system of Nevada. Nevada does not have this legal requirement, as in true no-fault jurisdictions, where injuries must meet some definition of a serious injury or surpass a specified dollar threshold to avoid personal injury protection (PIP) coverage and sue the at-fault driver. A victim may technically file a lawsuit, regardless of the degree of damage or the extent of the injury, no matter how small. This means that a fender bender that causes little property damage or a minor soft tissue injury can, hypothetically, result in a lawsuit.

Although no legal minimum exists to sue in Nevada, in practice, several factors determine whether it is possible or wise to initiate a lawsuit. Litigation may be time-consuming and expensive, with court filing fees, discovery costs, expert witness fees, and attorney fees. In a minor injury, like a dent in the car, or some days of muscle aches that disappear very soon, the possible economic compensation of a lawsuit may be lower than the expenses of a lawsuit. It may be more effective and economically viable to settle with the at-fault driver's insurance company or settle the claim directly in such a case.

Thus, whether to sue after a car accident in Nevada generally depends on several factors, namely:

  • The extent of the damages incurred — This includes both economic damages (medical expenses, lost income), and non-economic damages (pain and suffering, emotional distress)
  • Serious injuries and huge losses — These usually call for legal action to get adequate compensation.
  • The clarity of the other party's fault — A clear-cut instance of negligence will result in an easier lawsuit.
  • The possibility of a meaningful financial recovery that will warrant the time, effort, and cost of litigation — Although the law has not closed the door on suing, the determination to sue is usually determined by practical considerations.

The Procedure of Collecting Damages After a Car Accident in Nevada

When fault has been determined in a Nevada car accident, a step-by-step process must be followed to recover damages. It begins with the insurance company of the at-fault party and possibly a personal injury lawsuit. Understanding this process is crucial for accident victims who want to be compensated due to their injuries and losses.

Submit a Claim to the At-Fault Party’s Insurance Company

This is the first and the most direct step you will take to recover compensation. You should take the other driver's insurance information, their name, insurance company name, and policy number at the accident scene, provided it is safe and possible. Immediately after the accident, you will officially inform their insurer to open a third-party claim. This is done by calling their claims department and giving them the basic information regarding the accident, your identity, and the information about the driver at fault.

Once you start the claim, a claim number will be issued. You will need to use this number in every subsequent communication, request, and submission regarding your case so that all communications are tracked and can be traced to your particular incident. Accuracy during this initial step lays the foundation for your entire claim.

Negotiate a Settlement

Once you submit your claim, the at-fault party's insurance company will appoint an adjuster to investigate the accident. The work of this adjuster is to determine the liability and the damages.

In this stage, you must put together and present extensive evidence of all your losses. This includes all your medical bills and records of your injuries, including emergency room visits and continuing therapy. You will also be required to give repair estimates or bills on your damaged car and documents showing the lost wages or income because of your inability to work. After presenting all the evidence, you will negotiate with the adjuster. This can include demanding compensation, which the adjuster can respond to with a reduced offer. These negotiations aim to reach a reasonable settlement, sufficiently compensating all your losses without litigation. This step may include a series of proposals and counterproposals as you and the insurance company move closer to a mutual solution.

File a Personal Injury Lawsuit

A personal injury lawsuit is the last resort when negotiations with the insurance company do not produce satisfactory results. This is usually taken when the insurance company rejects your claim altogether, settles at an unreasonably low amount that fails to cover your damages, or delays the process unreasonably, without a good excuse.

A lawsuit is initiated by preparing and filing a formal complaint in the correct court, stating the details of the accident, negligence of the other driver, and the harm you have suffered. This legal proceeding compels the at-fault party to respond and participate in the litigation process. The lawsuit procedure may entail discovery (information and evidence sharing), mediation, and even a trial in case of disagreement on a settlement outside of court. Although most lawsuits are settled without a trial, the threat of a lawsuit or the lawsuit process itself can persuade the insurance company to make a more realistic settlement offer.

This holistic strategy will guarantee that the victims get channels to seek full compensation even under challenging situations.

Understanding Car Insurance in Nevada's At-Fault System

Under the at-fault insurance system in Nevada, knowing as much about your insurance coverage as about the other driver's liability is important.

Uninsured/Underinsured Motorist (UM/UIM) policies are some of the most important optional coverages drivers in an at-fault state can have. This coverage is a crucial safety net that covers you and your passengers if the other driver is uninsured or underinsured. Without UM/UIM, you could be left paying significant medical expenses, lost wages, and other expenses out of pocket. This coverage is meant to come in and pay you as though the other driver who caused the accident had adequate liability insurance.

For example, if you get into a serious accident with the other driver, who is obviously at fault. Your medical expenses alone can soon run up to $75,000, without counting lost income or property damage. However, the at-fault driver has only the state minimum liability policy of $25,000 or is even uninsured. In this case, his/her insurance would only cover a maximum of $25,000, thus leaving a huge gap of $50,000 in your medical bills. And it is here that your personal UM/UIM coverage will be priceless. Your UM/UIM policy would then come into play to cover the remaining $50,000, so that you are not left to foot the bill for the shortfall in coverage of the other driver. It is also a solid defense against the difference between what the policy of the at-fault driver can afford and the actual damages you suffered, which is necessary financial security.

On the other hand, Personal Injury Protection (PIP) is an insurance aspect that works considerably differently and typically cannot be used in Nevada. PIP is a characteristic feature of the no-fault insurance systems, which are meant to cover your medical costs and, in some instances, loss of wages, irrespective of who was at fault in the accident. PIP is typically required in no-fault states and allows immediate medical coverage regardless of fault. However, it is not mandated or commonly used in Nevada, and it also restricts your right to sue the at-fault driver unless your injuries are above a certain amount. Because Nevada is an at-fault state, the most common way to recover damages for your injuries is to pursue a claim against the at-fault party's liability insurance. Therefore, PIP is not a standard offering or requirement for drivers in Nevada, as the state's legal framework places the burden of compensation on the negligent driver rather than on each driver's policy for initial medical expenses.

Will Nevada Raise My Insurance Rates Whenever I Have Caused an Accident?

A car accident not only has short-term financial implications but can also affect your future insurance rates. Should you be deemed to have caused an accident in Nevada, then it is likely that your insurance premiums will go up when your policy is renewed. This is because your insurance company will now consider you a more risky driver since you have now proved yourself more prone to causing accidents in the future, which would lead to claims. The precise level of the hike may be much higher depending on the severity of the accident, the level of damages, your driving record, and the insurance company.

On the other hand, when you are in an accident and it is not proven that you were at fault, your insurance rates should not rise directly because of the claim. In a fault state like Nevada, the injured party is not liable to pay the expenses of the accident, and the burden is on the careless driver and his/her insurance company. Hence, submitting a claim against the policy of the at-fault party, or even your own UM/UIM coverage in the case of an uninsured or underinsured driver, would not usually cost you higher premiums since it was not your fault that led to the event.

Find a Personal Injury Lawyer Near Me

Nevada has a modified comparative negligence rule used within an at-fault system. Therefore, the liable party is financially responsible, but your recovery is severely affected should you be found to be 51% or more liable. Although there is no lower limit to a lawsuit, the feasibility of a lawsuit is usually a consideration. Insurance claims, knowledge about UM/UIM coverage, and possible changes to the premium are all essential issues to navigate after a collision. Establishing fault, bargaining with insurers, and meeting the unique Nevada statutes may be daunting, particularly when a victim recovers.

If you have been a victim of a car accident, then schedule a free consultation with the Las Vegas Personal Injury Attorney Law Firm and protect your legal rights when pursuing a fair resolution. Contact us at 702-996-1224.