Types of Insurance
These days, there are insurance policies for almost any asset or circumstance you can think of, from recreational vehicles and rented apartments to businesses, mortgages, accidents, and more. Some you’re required by law to purchase, while others are recommended or nice to have but not legally required. Here are the most common types of insurance you’ll encounter, as well as some basics about which ones are required by law, how to get them, and how to use them.
Automobile
*Required
As we explain on our page “In the Driver’s Seat: Owning and Operating Your Own Vehicle,” Nevada law requires every driver to carry insurance coverage on a vehicle they drive. An auto insurance policy provides financial help in the event of a crash or damage (for example, a tree falling on it) to a vehicle; it can pay for medical treatment and repairs or replacement of the vehicle. At the very least, your policy must cover any vehicle and drivers/passengers that are harmed by you, but it’s also recommended that you purchase a policy that will cover repairs on your car, too. Some policies may even include payment for a rental car that you can drive until your car is repaired.
You may pay for your policy monthly, quarterly, or annually, depending on your preference or the insurer.
The law states that every registered vehicle must have minimum levels of insurance coverage for bodily injury and/or death from a crash, as well as for destruction of property. As soon as you become a vehicle owner, you should immediately seek insurance coverage.
It’s not legal for you to be penalized by higher prices or denied coverage because of a disability. You have the right to fair, affordable insurance. However, it’s also recommended that you let your agent know about your disability when purchasing a policy.
See our “In the Driver’s Seat” page for more details.
Renter
Required or Recommended
While the state does not require that renters carry renter’s insurance, your individual landlord may require it, so pay careful attention to your lease to be sure you do as required. Like homeowners insurance, renter’s insurance protects your belongings in a rental — for example, replacing furniture or electronics that may have been stolen, or paying for a hotel if your apartment floods and you have to sleep elsewhere while it’s being cleaned up. However, this policy doesn’t pay for damage to the property that would be covered by the owner of the home (such as a flood or wildfire).
Homeowners
Required
Homeowners insurance is required for any home you purchase and finance with a mortgage, which is a payment plan arranged with a bank that allows you to buy a home with small monthly payments. The policy is usually paid for once a year, and the price is added to your home’s mortgage amount, so your monthly payment usually pays for both.
A homeowners insurance policy protects your investment in a home by paying to repair major damages or theft of your belongings. Examples of situations that a homeowners policy will cover include burglaries, fire, or wind damage.
Health/Medical
Recommended
Unfortunately, more than 10 percent of Nevadans don’t have health insurance. In fact, the state ranks 47th among all states for health coverage, meaning it has one of the highest percentages of uninsured residents in the nation.
Why is this bad? Because without health insurance, many people either can’t afford to pay for their medical care and end up owing thousands of dollars, or they simply won’t get care at all. While health insurance is not legally required, it should be considered a necessary expense.
Depending on your individual policy, health insurance may pay for some or all of the following: doctor check-ups or sick visits, surgeries, ambulance rides, medical equipment, mobility/accessibility equipment, tests/screenings, laboratory work, prescription medications, rehabilitation and physical therapy, mental health care, vaccinations, dental cleanings, vision screenings, and chiropractic visits. Although many policies will only provide partial payments for these services, they may not be affordable without those payments, ensuring you can receive the care you need to stay healthy.
Many people receive health insurance as a benefit provided by their employers, but some who are self-employed or whose employers don’t provide it for various reasons may purchase policies themselves. In that case, you may qualify for a government subsidy that provides you a discounted rate for a Nevada Health Link policy (see below).
Medicaid
Some people either can’t afford to pay for health insurance policies because they are un- or underemployed, or they can’t work due to disabilities or other obstacles and therefore don’t have access to employer-provided plans. In that case, Medicaid can help. Medicaid provides health care coverage for many people, from low-income families to children in foster care to Supplemental Security Income recipients, and more.
Life
Recommended
As a young person beginning to live independently, it’s unlikely that you have dependents, or people who live with you and depend on your income. However, it’s important that you know what life insurance is and how it may benefit you or your family.
As Paige Tripp, an independent insurance agent in Las Vegas who deals with the medical profession, explains, life insurance protects the covered person’s family in the event of their death and loss of that income.
As a child living with your parents or caregivers, you relied on their income to pay for your shelter, food, clothing, and more. But if those caregivers were to pass away, you not only would suffer emotionally from that loss, but you would struggle financially without their income. Additionally, the cost of funerals, burials, and other services associated with a person’s death can be quite expensive, and few of us have that kind of money at hand.
You may currently be someone else’s dependent, and it would be helpful for you to know that they are covered by life insurance to help you with expenses if you were to lose them.
No one likes to think about death, but none of us will escape it. One of the best things you can do for your loved ones is to invest in a life insurance policy — Tripp suggests that even a policy that provides just $10,000 in the event of your death is a good idea — to cover the costs associated with your death.
Such a policy can usually be purchased for a small monthly payment and will provide peace of mind. As you grow older, you may have a spouse, significant other, or child who may rely on your income, and it might then be worth investing in a more valuable policy, to cover not only the cost of your funeral and burial, but also the loss of any income you would provide to the household (now and in the future) and the loss of consortium, which means the loss of emotional support, companionship, and shared services that are all part of the grief process.
