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An operator’s policy is different from regular liability insurance. This auto insurance coverage insures the driver, not the car. That is, the driver would be insured no matter what vehicle was driven. This auto insurance coverage does not cover yet another person driving your vehicle with or with out your consent. According to Nevada Revised Statute 485.186, yet another essential requirement of an operator’s policy is that the number of motor vehicles that the policyholder owns should be higher than the number of persons in his household who possess a driver’s license. For that reason, every single individual in his household who possesses a driver’s license is covered by the operator’s policy of liability insurance. This type of auto insurance is intended primarily to serve the requirements of automobile collectors.

You need to be aware that an auto insurance in Nevada policy is a legal contract. It is written so that your rights and responsibilities, as well as those of the auto insurance firm, are clearly stated.

When you purchase auto insurance, you will receive a policy. You really should read that policy and try to realize its contents. If you have questions about your auto insurance policy, contact your auto insurance agent for clarification. If you still have questions, call the Nevada Division of Insurance.

Mid-Term Cancellation of Your Policy

Nevada laws restrict the mid-term cancellation of your policy. If the business cancels your policy, the premium will be prorated without having any penalty to you, but the reason for cancellation should be in compliance with Nevada Revised Statute 687B.320. Even so, if you cancel the policy, there is typically a “short rate” penalty that usually amounts to about 10% of the return premium. If the policy is canceled early in the term, the penalty is higher than if it is canceled late in the term. Policies regarding early cancellations and refunds vary from auto insurance organization to auto insurance company.