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Common Mistakes When Adding New Drivers to Your Auto Insurance Policy in Nevada—and How to Protect Your Assets

Adding a new driver to your auto insurance policy is a big milestone, especially when it’s your teenager getting behind the wheel for the first time. While it’s an exciting time, it’s also a situation that requires careful financial and legal consideration. Many Nevada residents make costly mistakes when adding new drivers, putting their assets at risk. In this article, Anthem Injury Lawyers highlights these common mistakes and discuss the best ways to protect yourself, including the importance of uninsured/underinsured motorist coverage and why Nevada’s minimum insurance requirements may not be enough for your family.

teen driver getting car keys from parent

Common Mistakes When Adding a New Driver to Your Policy

  1. Not Adding the New Driver to the Policy Right Away

Many parents assume their teenager is automatically covered under their policy when they start driving with a permit. While some insurers provide coverage for permit holders, others require that the driver be explicitly listed on the policy once they receive their license. Failing to add a new driver can result in coverage issues or even policy cancellations.

Best Practice: Contact your insurance company as soon as your child gets their permit to understand how and when they should be added to the policy.

  1. Choosing the Minimum Required Coverage

Nevada law requires all drivers to carry a minimum auto insurance policy, which includes:

  • $25,000 per person for bodily injury liability
  • $50,000 per accident for bodily injury liability
  • $20,000 per accident for property damage

While these amounts meet legal requirements, they often fall short when it comes to protecting your assets. Medical bills and vehicle repair costs can quickly exceed these limits, leaving you financially exposed in the event of an accident.

Best Practice: Consider purchasing higher liability limits to protect your family’s financial future. Many experts recommend at least $100,000/$300,000 for bodily injury liability and $50,000 for property damage.

  1. Overlooking Uninsured/Underinsured Motorist (UM/UIM) Coverage

Nevada has a high number of uninsured and underinsured drivers. If your child is involved in an accident with a driver who doesn’t have enough insurance (or any at all), you could be left covering the damages out of pocket.

Best Practice: Add Uninsured/Underinsured Motorist Coverage (UM/UIM) to your policy. This will help pay for medical expenses and damages if the at-fault driver’s insurance isn’t sufficient to cover the costs.

  1. Not Taking Advantage of Discounts

Auto insurance for teen drivers can be expensive, but many insurers offer discounts that can help reduce costs, including:

  • Good student discounts for maintaining a B average or higher
  • Defensive driving course discounts
  • Multi-car or multi-policy discounts if you bundle with home insurance
  • Telematics or safe-driving app discounts

Best Practice: Ask your insurer about available discounts and enroll your child in a defensive driving course to lower premiums.

  1. Choosing the Wrong Vehicle for Your Teen

Some parents assume that putting their teenager in an old, inexpensive car will save money. However, older cars may lack modern safety features and could increase liability risks.

Best Practice: Opt for a safe, reliable vehicle with a high safety rating. Many insurers provide lower rates for vehicles with advanced safety features, such as automatic emergency braking and lane departure warnings.

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How to Protect Your Assets with the Right Coverage

  1. Increase Liability Limits

Higher liability limits provide additional financial protection in case your child is at fault in an accident. If the damages exceed your policy’s limits, you may be personally liable for the remaining costs.

  1. Add an Umbrella Insurance Policy

An umbrella policy provides extra liability protection beyond your standard auto insurance policy. If your teen is involved in a serious accident, this coverage can prevent lawsuits from putting your savings, home, or other assets at risk.

  1. Include UM/UIM Coverage

We can’t stress this enough: Uninsured/Underinsured Motorist Coverage is essential in Nevada. Without it, you could be paying for damages caused by an irresponsible driver.

  1. Consider Comprehensive and Collision Coverage

If your child’s car is newer, adding comprehensive and collision coverage can help cover damage from accidents, theft, or natural disasters.

Helpful Resources for Nevada Drivers

  • Nevada DMV – Insurance Requirements: Visit Site
  • Insurance Information Institute – Understanding UM/UIM Coverage: Visit Site
  • National Highway Traffic Safety Administration – Safe Vehicles for Teens: Visit Site

Final Thoughts

Adding a new driver to your policy requires more than just a phone call to your insurance provider—it’s about ensuring your family is financially protected in case of an accident. By avoiding common mistakes and securing the right coverage, you can give your young driver the best possible start on the road while safeguarding your assets.

If you or a loved one has been involved in an accident, Anthem Injury Lawyers is here to help. Contact us today for a free consultation to understand your rights and options.

📞 Call us now at (702) 857-6000 or visit us at Anthem Injury Lawyers

Last updated Thursday, February 6th, 2025

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