Nevada DMV fines drivers with no insurance
This isn’t new but it’s worth discussing to remind drivers how our DMV verifies auto insurance and what the consequences are if you have no insurance for any period of time while your car is registered. Fines range from $250 – $1,751
Auto Insurance is required by law in the State of Nevada, this is common knowledge since it’s been this way for as long as any of us can remember. When you think about it, it’s actually one of those “common sense” laws that really does a pretty good job at protecting the public. Every single car driving on the road runs the risk of being involved in an accident and when there’s an accident it is likely there will be damaged property or injuries. It only makes sense to have a way for the at-fault driver to pay for their negligence.
The Nevada Department of Motor Vehicles (DMV) is tasked to oversee all things related to driver licensing and vehicle registrations. Afterall, we would all agree that there should be some kind of minimum standard required before someone can take a vehicle and drive around our roads. They also have a system for verifying whether or not someone has an active auto insurance policy.
NV LIVE – the verification system
NV LIVE is the name of the system used by the DMV to verify whether or not your auto insurance is active. LIVE stands for Liability Insurance Validation Electronically. Basically, all insurance companies that are licensed to write auto insurance in NV are required to report whenever a policy starts or cancels. They have to report electronically to the DMV with regular frequency. This is how the DMV is able to monitor whenever an auto insurance policy cancels.
What if my policy cancels?
If your auto insurance policy cancels you should immediately contact your company or agent and request a reinstatement. There are two types of reinstatements.
Lapse: a period of time when your insurance policy was not active
- Reinstatement with a lapse – your insurance company agrees to reinstate your coverage but will not cover the lapse period, leaving you with an uncovered period of time and at least a $250 fine from the DMV.
- Reinstatement without a lapse – your insurance company agrees to reinstate your coverage back to the original date of cancellation. This is the option you should push for as it will help you to avoid DMV fines.
Obviously option #2, Reinstatement without a lapse, is the better of the two options. There are many factors that go in to which option your company decides to take with your lapse, if they even offer to reinstate at all. Talk with one of our agents if you know you’ve had a lapse and we can probably help, whether you’re our client or not.
How can my policy cancel?
The most common reason for cancellation is non-payment. In Nevada, the law requires that your insurance company give you at least a 10 day notice before they can cancel the policy for non-payment.
What difference can we make?
Having an agency that is experienced in dealing with the DMV will make your life a lot easier.
- When we write a new policy we go online with the DMV and manually update your registration records. This alone will greatly reduce the chance of the DMV sending you a nasty letter about lapsing your insurance.
- Our agents understand the verification process between your insurance company and the DMV.
- We know which specific underwriters can resolve problems.
Information taken from http://www.dmvnv.com/insurance.htm#How