Last week, Nevada became the 34th state to ban texting and talking on cell phones while driving. However, the implications of getting caught and how it may affect a driver's insurance is still unclear.

Signed into law by Gov. Brian Sandoval, the bill establishes a $50 fine for a first offense, a $100 fine for a second offense and a $250 fine for a third offense. Third offenses will also result in a six-month driver's license suspension.

What makes this new law interesting, though, is that first offenses can't be categorized as moving violations, and the text of the bill gives no particulars on how subsequent convictions will be handled.

This is a big issue when dealing with auto insurance and determining risk and premium prices. Most insurance companies look at a person's driving history in order to gauge the risk he or she poses and develop a price based on that, but they generally only look at moving violations.

If second and third convictions do end up on a motorist's driving record as a moving violation, Nevada car insurance companies may decide to take that into consideration, but that would be up to each insurer.

Another dilemma that the new law has inadvertently created for Nevada drivers is what to do with their auto insurance if they get a third offense and lose their license for six months.

Obviously, if they continue to insure their car while their license is under suspension, they'll be paying out of pocket for a car they can't drive. However, those drivers could run into problems down the road, because if you go uninsured in the state of Nevada for any duration of time, “you may find it difficult to obtain insurance you can afford,” according to a guide provided by regulators.

Regulators have also noted that some companies choose to deny coverage to individuals who allow their policy to lapse or expire and that others will simply charge more for drivers who have done so.

Fortunately, Nevadans won't have to face these tough decisions until the bill takes effect in January 2012. As it stands today, getting caught talking or texting while driving will only result in a verbal or written warning.

—AJ Register