In order to demonstrate Financial Responsibility, the State of Nevada allows drivers to a) own a liability insurance policy for motor vehicles (auto liability insurance) and b) be self-insured, this only applies if you own more than 11 vehicles and you'll need to be able to show proof of this.

Nevada requires all drivers to be insured when driving a motor vehicle, however, unlike other states, Nevada considers as mandatory liability coverage. The minimum required for this coverage are:

• $15,000 for one person regarding bodily injury or death
• $30,000 per accident (more than one person) regarding bodily injury or death, and
• $10,000 to take care of property damage.

All insurance or policy emitting companies must be authorized by the State of Nevada. Other types of insurance, considered non mandatory but highly recommendable are Comprehensive and Collision. The first one will take care of damage caused by non collision related events such as severe weather like flooding, wild fires, tornados, high winds, etc.

On the other hand, collision coverage, as it name indicates, will take care of the expenses needed to get your vehicle back in shape after being part of a collision, no matter if it is a high speed collision with another vehicle or if it is a collision in a parking lot with a wall or light pole. Collision coverage will help fix all physical damage your vehicle may have suffered.

Additional to collision and comprehensive, other commonly added coverage to auto policies is Uninsured / Underinsured Motorist. This type of coverage is used when the driver held responsible for the accident owns a liability policy that isn't sufficient to pay for damages and injuries caused to you and other involved in the accident (Underinsured) and also for when an irresponsible driver lacks completely of an insurance policy to comply with his / her financial responsibility (Uninsured). This last type of coverage is also used when the person responsible for the accident decides to go away from the scene, creating a hit and run situation.

Nevada possesses an Insurance Verification Program IVP, in this program all insurance companies are required to inform the DMV of any policy cancelation or terminations, as well as all the new policies emitted during the month.

DMV can then contact you if it suspects you don't own the proper insurance liability policy. Once contacted, you'll have 20 days to get back in touch with the DMV and present your Name, Vehicle's VIN, Insurance Company's name and your insurance policy number.

It is required for drivers to carry with them, at all time when the vehicle is being driven, proof of insurance or self-insured. Insurance companies will give their clients insurance ID cards at the moment when they acquire the services. This can be shown to any law enforcement officer whenever required (when pulled over or if involved in an accident).

Failure to provide the previous mentioned proof of ownership, DMV entitles officers to impound your vehicle and remove license plates to it.