NRS 485.3091 Proof of Financial Responsibility

NRS 485.3091 Proof of financial responsibility (Nevada definition)

NRS 485.3091  Motor vehicle liability policy: Requirements.

1.  An owner’s policy of liability insurance must:
   • (a) Designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is thereby to be granted; and
   • (b) Insure the person named therein and any other person, as insured, using any such motor vehicle with the express or implied permission of the named insured, against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of such motor vehicle within the United States of America or the Dominion of Canada, subject to limits exclusive of interest and costs, with respect to each such motor vehicle, as follows:
     • (1) Because of bodily injury to or death of one person in any one crash, $25,000;
     • (2) Subject to the limit for one person, because of bodily injury to or death of two or more persons in any one crash, $50,000; and
     • (3) Because of injury to or destruction of property of others in any one crash, $20,000.
2. An operator’s policy of liability insurance must insure the person named as insured therein against loss from the liability imposed upon the person by law for damages arising out of the person’s use of any motor vehicle within the same territorial limits and subject to the same limits of liability as are set forth in paragraph (b) of subsection 1.
3. A motor vehicle liability policy must state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the period of effectiveness and the limits of liability, and must contain an agreement or be endorsed that insurance is provided thereunder in accordance with the coverage defined in this chapter as respects bodily injury and death or property damage, or both, and is subject to all the provisions of this chapter.
4. A motor vehicle liability policy need not insure any liability under any workers’ compensation law nor any liability on account of bodily injury to or death of an employee of the insured while engaged in the employment, other than domestic, of the insured, or while engaged in the operation, maintenance or repair of any motor vehicle owned by the insured nor any liability for damage to property owned by, rented to, in charge of or transported by the insured.
5. Every motor vehicle liability policy is subject to the following provisions which need not be contained therein:
   • (a) The liability of the insurance carrier with respect to the insurance required by this chapter becomes absolute whenever injury or damage covered by the policy occurs. The policy may not be cancelled or annulled as to such liability by any agreement between the insurance carrier and the insured after the occurrence of the injury or damage. No statement made by the insured or on behalf of the insured and no violation of the policy defeats or voids the policy.
   • (b) The satisfaction by the insured of a judgment for injury or damage is not a condition precedent to the right or duty of the insurance carrier to make payment on account of the injury or damage.
   • (c) The insurance carrier may settle any claim covered by the policy, and if such a settlement is made in good faith, the amount thereof is deductible from the limits of liability specified in paragraph (b) of subsection 1.
   • (d) The policy, the written application therefor, if any, and any rider or endorsement which does not conflict with the provisions of this chapter constitute the entire contract between the parties.
6. Any policy which grants the coverage required for a motor vehicle liability policy may also grant any lawful coverage in excess of or in addition to the coverage specified for a motor vehicle liability policy, and the excess or additional coverage is not subject to the provisions of this chapter.
7. Any motor vehicle liability policy may provide for the prorating of the insurance thereunder with other valid and collectible insurance.
8. The requirements for a motor vehicle liability policy may be fulfilled by the policies of one or more insurance carriers, which policies together meet those requirements.
9. Any binder issued pending the issuance of a motor vehicle liability policy shall be deemed to fulfill the requirements for such a policy.

(Added to NRS by 1957, 726; A 1963, 222; 1967, 1203; 1969, 178; 1973, 837; 1979, 1516; 1981, 628; 1987, 1094; 2015, 1652; 2017, 1341)

Source:Nevada Revised Statutes (NRS) Chapter 485, Section 3091. Accessed

Overview of NRS 485.3091

Nevada drivers must maintain liability insurance with minimum coverage of $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $20,000 for property damage. This requirement, established under NRS 485.3091, protects both drivers and accident victims.

Originally enacted in 1957 and last updated in 2017, NRS 485.3091 serves as Nevada’s cornerstone legislation for motor vehicle liability insurance. The statute establishes mandatory coverage requirements while ensuring broad protection through its absolute liability provision and inclusive coverage terms.

NRS 485.3091 defines not only the minimum insurance requirements for Nevada but also how coverage applies in various situations, from personal use to permitted drivers.

Nevada Insurance requirements comparison by surrounding states

Key elements of NRS 485.3091

Minimum coverage requirements

Nevada law requires all drivers to maintain liability insurance that meets specific minimum thresholds. The current requirements mandate coverage of $25,000 for bodily injury or death per person, with a total of $50,000 available per accident. Additionally, policies must provide at least $20,000 in property damage coverage. Recent data shows that 87.3% of Nevada drivers maintain these required coverage levels, demonstrating strong compliance with the statute.

Policy coverage scope

The statute distinguishes between owner’s and operator’s policies, each serving distinct purposes while ensuring comprehensive protection. Owner’s policies follow the vehicle, providing coverage regardless of who operates the vehicle with permission. This broad coverage scope significantly enhances protection for both vehicle owners and other drivers on Nevada roads.

Absolute liability provision

One of the statute’s most significant features is its absolute liability provision. Once an accident occurs causing injury or damage, the insurance carrier’s liability becomes absolute. This prevents post-accident policy cancellations and ensures victim protection, a principle strongly upheld in State Farm Mut. Auto. Ins. Co. v. Hinkel (87 Nev. 478, 1971).

Practical applications

Multi-vehicle accidents

When multiple vehicles collide in Nevada, the statute’s framework allows victims to access multiple insurance policies for compensation. For example, in a three-car collision, injured parties may claim against all responsible parties’ policies, maximizing available compensation within the statutory framework.

Permitted driver scenarios

The statute specifically addresses situations involving permitted drivers. When someone borrows a vehicle with the owner’s permission, the owner’s insurance provides primary coverage. This “insurance follows the car” principle simplifies coverage questions and enhances protection for all parties involved.

Frequently asked questions about NRS 485.3091 proof of financial responsibility

What happens if I drive without insurance?

Driving without insurance in Nevada results in severe consequences. Penalties include fines up to $1,000, license suspension, and mandatory SR-22 filing. Additionally, your vehicle registration may be suspended, and your vehicle could be impounded.

Does my insurance cover other drivers?

Yes. Under NRS 485.3091(1)(b), your insurance covers anyone driving your car with your express or implied permission. This coverage extension ensures protection regardless of who operates the vehicle legally.

Related statutes

The effectiveness of NRS 485.3091 is enhanced by several related statutes. NRS 485.185 establishes the basic requirement to maintain liability insurance, while NRS 485.3092 specifies additional policy requirements. NRS 485.3098 details alternative methods of proving financial responsibility beyond standard insurance.

Additional considerations

Commercial vehicles

Commercial vehicles face additional requirements beyond personal vehicle insurance minimums. These include consideration of interstate commerce regulations, special permit requirements, and fleet policy options. Business owners should consult with insurance professionals to ensure full compliance with both state and federal requirements.

Digital insurance solutions

Nevada has embraced digital solutions for insurance verification and proof of coverage. Recent legislative updates have expanded digital insurance card verification (2023), implemented real-time database systems (2022), and authorized mobile app verification (2021). These innovations improve compliance monitoring while simplifying the process for drivers.