Nevada uses modified comparative negligence laws when judging car accidents caused by negligence. These laws allow the court to distribute fault among the parties involved in an accident. In essence, the law says the compensation a victim receives after filing a successful claim with the help of a personal injury accident lawyer following a car accident is reduced depending on the percentage of fault the court attributes to them.
This law has been in place for a long time and has largely remained unchanged apart from a few adjustments in how it is applied or enforced. However, there has been a change in how insurance companies pay liabilities awards or settlements. This falls under the new Assembly Bill 398 law.
In this article, we will answer the question “What is the new car accident negligence law in Nevada?”, and look at its implications on how liabilities are paid in the state.
What is Assembly Bill 398?
Assembly Bill 398 (AB 398) is a Nevada law that became effective in October 2023. The law introduces significant changes to liability insurance policies in Nevada, allowing better outcomes for any personal injury law firm in the state and the clients who file personal injury claims stemming from car accidents caused by a driver’s negligence.
The new law prohibits insurers operating in the state from issuing or renewing liability insurance policies that have provisions that allow for the cost of defending to be included in the policy.
Let’s see an example. Say a vehicle accident lawyer has won a case where their client has been awarded $100,000 and the other party’s policy limit is $100,000. One would assume that the victim would get this whole sum. In the past, insurance companies could deduct the cost of defending the claim within this limit, thereby reducing the amount the victim could receive.
Say the insurance company spent $50,000 in legal fees defending themselves against the claim. Including these costs within the limit means the policy is effectively worth $50,000 (the amount remaining after deducting the cost of defending the claim).
This was unfair to the victims who needed the awarded amount to handle things like hospital and rehabilitation bills, prescription bills, or to survive due to loss of income and work opportunities.
The Problem Assembly Bill 398 Addresses
This new law ensures that all the funds available for indemnifying a claim are available to the victim. This is especially important for a road accident lawyer Nevada representing a client injured by a driver’s negligent actions like drunk driving.
If you find yourself in such a situation and knowing the law now leads to higher awards, you should hire a car accident lawyer Sparks NV if you are involved in such an accident.
Our reputable attorneys at Karns & Karns Personal Injury and Accident Attorneys have the experience to help you get the best outcome in your negligent car accident claim. Call us today at 800-4-The-Win (800-484-3946) or visit our offices for a free consultation and case analysis.
Nevada Sets a Precedent
This legislation marks Nevada as the first state in the U.S. to completely ban these types of DWL (defense within limits) or “self-eroding” policies, setting a precedent that could influence insurance practices nationwide.
Assembly Bill 398 is a huge win for almost everyone because it covers all types of personal injuries where liability applies. However, insurance companies and players in some industries are not happy. Insurance companies are unhappy because they have to pay out the full amount for these policies whereas they would have gotten away with paying less in the past.
The unseen effect of this law is that it will increase insurance costs. This is leading some industries that file many liability claims, including construction, healthcare, tourism, and businesses with fleets of vehicles, to worry about their insurance costs. They are also concerned about not obtaining proper coverage, especially if the number of insurance providers accepting applications decreases.
However, this should not discourage you from filing a personal injury lawsuit on the off chance that the defendant does not have proper coverage. The best Sparks personal injury lawyer can find out how much you can get and how you can get it and go after the full amount in the courtroom or through a settlement.
Nevada’s Accident Negligent Laws
Even with this change to how insurance companies calculate awards when their clients are liable for a car accident, the main comparative negligence law remains. While other states that use comparative negligence laws say that the defendant can be awarded part of the award if they are no more than 50% liable, Nevada says the same is only possible if the victim is not more than 51% liable.
Put simply, the victim must not be more or equally liable than the other party to receive an award. This can be confusing, especially for those who have never filed a claim in Nevada or are new to the state. However, a personal injury accident attorney can explain what it is so you can better understand it.
They will also help you better understand how comparative negligence applies when the court receives a verdict after filing a claim.
Being involved in a car accident is devastating, and it can be difficult knowing that you or a loved one was injured due to the negligent actions of another person. Nevada law allows you to hire top personal injury attorneys to file a claim on your behalf and ensure you get the compensation you deserve. The state has recently changed its laws to ensure none of your awarded money is used by the insurance company to cover its defense, leaving more money for the victim awarded compensation after a successful claim.
If you are involved in an accident, our accident injury lawyers can help. You can contact Karns & Karns Personal Injury and Accident Attorneys through our website, by visiting our offices, or by calling us at 800-4THE-WIN (800-484-3946). We provide free consultations and will represent you so that you get the compensation you deserve.
