Full Coverage vs Liability-Only Insurance in Nevada

No, "full coverage" is a misleading term. It typically means liability + comprehensive + collision, but it does not cover everything:

What "Full Coverage" Usually DOES NOT Include:

• Mechanical breakdowns (need mechanical breakdown insurance or warranty)
• Normal wear and tear (tires, brakes, routine maintenance)
• Damage from racing or intentional acts
• Using your personal vehicle for rideshare without proper coverage
• Rental car reimbursement (need to add this separately)
• Gap coverage if you owe more than the car's value (need GAP insurance)

Bottom Line: "Full coverage" is industry slang, not an official term. Review your policy to know exactly what's covered and consider optional add-ons like rental reimbursement, roadside assistance, and GAP coverage.

Once your vehicle is paid off, you're no longer required by your lender to carry comprehensive and collision coverage. However, whether you should drop it depends on several factors:

Consider Keeping Full Coverage If:

• Your vehicle is worth more than $5,000-$10,000
• You can't afford to replace it out of pocket
• You depend on the vehicle for work or family
• You live in an area with high theft or weather risk
• You want protection from uninsured drivers (collision covers hit-and-runs)

Consider Dropping to Liability Only If:

• Your vehicle is worth less than $3,000-$5,000
• You have savings to replace it if totaled
• The annual premium for full coverage exceeds 10-15% of the car's value
• You have another vehicle and this is a backup

Pro Tip: Use the "10% rule" — if your comprehensive + collision premium is more than 10% of your vehicle's value annually, consider dropping to liability only.

Both cover damage to YOUR vehicle, but for different causes:

Comprehensive ("Other Than Collision"):

• Theft, vandalism, fire
• Weather damage (hail, flood, wind)
• Hitting an animal
• Falling objects (tree branches, rocks)
• Broken windshield
• Riots and civil disturbance

Collision:

• Accidents with other vehicles
• Single-vehicle accidents
• Hitting stationary objects (poles, guardrails)
• Rollover accidents
• Hit-and-run accidents

Easy Memory Trick: If your car hits something or something hits your car while moving, it's collision. Everything else (theft, weather, animals, vandalism) is comprehensive.

Cost Difference: Comprehensive is typically cheaper than collision because comprehensive claims (theft, weather) are less common than collision claims (accidents).

The savings vary significantly based on your vehicle, location, and driving record, but here are typical Nevada examples:

Average Annual Savings (Full Coverage → Liability Only):

• Older vehicle (2010 or older): Save $600-$1,200/year
• Mid-age vehicle (2015-2020): Save $800-$1,500/year
• Newer vehicle (2021+): Save $1,200-$2,000/year
• High-value vehicle ($40,000+): Save $1,500-$3,000/year

Example: A 2015 sedan in Las Vegas might cost $1,800/year for full coverage vs. $800/year for liability only — a savings of $1,000/year or $83/month.

Important Consideration: While you save money on premiums, remember you're giving up protection for your own vehicle. One accident, theft, or weather event could cost you thousands of dollars out of pocket.

Smart Approach: Get quotes for both coverage levels and compare the premium difference to your vehicle's value. If the full coverage premium is less than 10-15% of your car's value annually, it's usually worth keeping.

Even safe drivers should consider full coverage because accidents aren't the only risk:

Risks Beyond Accidents:

• Theft: Nevada (especially Las Vegas) has higher-than-average vehicle theft rates. Comprehensive coverage protects you.
• Hit-and-Run: Approximately 16-20% of Nevada drivers are uninsured. If they hit you and flee, collision coverage pays for repairs.
• Weather: Monsoon storms, hail, and flash floods damage vehicles. Comprehensive coverage handles this.
• Vandalism: Key scratches, broken windows, and slashed tires are covered by comprehensive, not liability.
• Not-At-Fault Accidents: Even if the other driver is at fault, their insurance may not cover everything or they may be uninsured. Collision covers your vehicle regardless of fault.

Bottom Line: Being a safe driver reduces your risk, but it doesn't eliminate external risks like theft, weather, or uninsured drivers. Full coverage protects you from circumstances beyond your control.

Safe Driver Benefit: If you have a clean driving record, you'll pay less for full coverage than someone with accidents or tickets, making it more affordable to maintain comprehensive protection.