Bodily injury payouts in Nevada have increased steadily in recent years, climbing 35% since the start of the pandemic, according to new findings from Mercury Insurance.
The insurer’s report noted that liability claims for auto and home policies are outpacing coverage limits, leaving some policyholders financially exposed. Multi-vehicle crashes, dog bite incidents, and injuries sustained by delivery workers on private property were among the most common causes of rising costs.
“Unexpected accidents are becoming more costly for Nevadans, which puts them at risk of having to pay out of pocket,” said Nick Colby, vice president and chief sales officer at Mercury Insurance.
One case cited involved a Nevada driver who struck a moped, severely injuring the rider. The driver’s auto policy limit of $25,000 did not cover the damages, resulting in out-of-pocket payments deducted from wages until the settlement was met.
The report emphasized the role of umbrella insurance in addressing these gaps. Unlike standard auto or homeowners coverage, umbrella insurance is designed to extend liability protection when claim costs surpass the limits of base policies. Industry guidance, including a recent Forbes analysis cited in the report, described umbrella coverage as a way for individuals to safeguard personal wealth against lawsuits and unexpected expenses.
“Mercury has redesigned its umbrella insurance to give Nevadans an extra layer of protection beyond a traditional auto or home policy. It’s an affordable safety net that protects you from these expensive accidents and litigious lawyers looking for a big payday,” Colby said.
The findings outlined several changes tied to rising injury costs:
Nevada is the eighth state where Mercury has introduced these expanded protections, following similar moves in California, Texas, Oklahoma, Illinois, Arizona, Georgia, and Florida.
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