NV DMV Insurance and Financial Responsibility 3 — Questions and Answers
Question 1: If you lend your car to a friend who then causes an accident, whose insurance pays first in Nevada?
- The friend's insurance only
- Your insurance as the vehicle owner (Correct answer)
- The state fund
- Neither party's insurance
Correct answer: Your insurance as the vehicle owner
In Nevada, insurance follows the vehicle, so the owner's policy is primary when the car is loaned.
Question 2: What is the minimum property damage liability required by Nevada law?
- $5,000
- $10,000
- $20,000 (Correct answer)
- $25,000
Correct answer: $20,000
Nevada requires a minimum of $20,000 in property damage liability coverage per accident.
Question 3: What must you do if you cancel your Nevada vehicle insurance?
- Do nothing — the DMV is notified automatically
- Surrender your license plates immediately
- Obtain new coverage or surrender your registration (Correct answer)
- Pay a $50 cancellation fee to DMV
Correct answer: Obtain new coverage or surrender your registration
If you cancel your insurance, you must obtain a new policy or surrender your registration to avoid a lapse violation.
Question 4: Which document provides official proof that you meet Nevada's financial responsibility requirement?
- A bank statement showing sufficient funds
- An insurance ID card from your insurer (Correct answer)
- A signed affidavit from your employer
- A valid Nevada driver's license
Correct answer: An insurance ID card from your insurer
An insurance identification card issued by your insurer is the standard proof of financial responsibility in Nevada.
Question 5: An SR-22 is best described as:
- A type of auto insurance policy
- A certificate filed by your insurer proving minimum coverage (Correct answer)
- A government-issued bond for high-risk drivers
- A Nevada DMV fine payment receipt
Correct answer: A certificate filed by your insurer proving minimum coverage
An SR-22 is a certificate of financial responsibility that your insurer files with the DMV on your behalf.
Question 6: If you are caught driving with a suspended registration due to no insurance, what additional penalty may apply?
- Community service only
- Mandatory vehicle impoundment (Correct answer)
- Automatic out-of-state license ban
- Permanent license revocation
Correct answer: Mandatory vehicle impoundment
Nevada law allows law enforcement to impound a vehicle driven with a suspended registration for lack of insurance.
Question 7: A Nevada driver deposits $30,000 in cash with the state treasurer as an alternative to insurance. What does this accomplish?
- It satisfies the financial responsibility requirement (Correct answer)
- It exempts the driver from all traffic laws
- It covers unlimited damages in any accident
- It applies only to commercial vehicles
Correct answer: It satisfies the financial responsibility requirement
A $30,000 cash deposit with the Nevada state treasurer is one approved method of meeting financial responsibility requirements.
NV DMV Insurance and Financial Responsibility 3
If you lend your car to a friend who then causes an accident, whose insurance pays first in Nevada?