Rental Car Insurance Coverage In Nevada
Most tourists who visit Nevada who rent a car are confused about the excess insurance coverage offered by the rental companies. In Nevada, a person can rent a car with, or without, their own automobile policy. The coverage offered by the rent a car company is supplemental to your own policy if you decide to purchase it. The companies sell the insurance as a “walk away from an accident, no questions asked” type of sell. Usually, this is a big money maker for the leasors.
Fortunately, your own policy is sufficient to cover most property damage issues. So, in essence a person is merely double covered when they purchase the extra coverage. Of course, if a renter does not have adequate automobile coverage on their personal vehicle, then it would be prudent to purchase the additional coverage, but be sure to read what exactly all the fine print actually says and covers you for in the event of an accident.
Under Nevada, law the rental car companies (leasors) including Hertz, Alamo, Budget, Enterprise, and all others must pay up to $15,000 in the event of an accident where no other coverage exists. Also, rental car companies are on the hook for $15,000 (per person)/ $30,000 (per accident)—the state minimums, regardless of the amount of personal driver coverage if the injured party is not adequately compensated. The theory is that as a business entity, if you put a vehicle on the road in Nevada, private or corporate, you’re going to be liable for the state minimum. See Hall v. Enterprise ; Salas v. Allstate Rent-A-Car, Inc., 116 Nev. 1165, 14 P.3d 511 Nev., (2000).
Contact Benson & Bingham today if you have been involved in an accident in Las Vegas, Nevada involving a rental car for a full explanation of your rights. Don’t be injured in Nevada without the advice of an experienced injury attorney.
Last time we were in Vegas to visit family, we were told by AVIS that we were Required By Law to purchase insurance on our rental car. From what I read here, that’s not true. Were they correct?
No they sold you stuff you likely didn’t need. Often, your own insurance company will give you coverage. There is usually no need to have double coverage. Under Nevada Law, AVIS and others are automatically liable for $15,000 in bodily injury coverage. The policy that they tend to sell just mirrors this mandatory coverage. Where the coverage may be a benefit is in the event the car is wrecked. The property damage is usually handled 100%–so if you have a large deductible on your own policy you may want to purchase, however, I highly discourage taking the additional unnecessary coverage.