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

Effective today, New York drivers who are pulled over for using their hand-held cell phone while driving can expect an additional penalty—points off their license.

The cell-phone ban is nothing new. New York passed the initial ban in 2001 (It was the first state to do so). But that statute only attached a fine for the action—no points. However, beginning today, Feb. 16, drivers will be penalized two points in addition to the fine, which will, in some cases, adversely affect car insurance premiums.

While two points is considered the lightest penalty, one that insurance providers tend to overlook, if a driver has any additional points missing, the two-point penalty could place the driving record into dangerous territory and raise a red flag with the insurance company.

Unlike other non-driving related infractions that negatively affect insurance premiums, talking on a cell-phone while driving has been proven to be quite distracting, on par, according to some studies, with drunk driving.

"Distracted driving is one of the most serious dangers on our roadways today," said New York DMV Executive Deputy Commissioner J. David Sampson in a recent press release by the department. "By strengthening the current law, our hope is that motorists will become even more aware of the potential consequences of their actions if they use a cell phone while driving."

This new feature of the cell-phone ban is due in part to New York’s number of distracted-driver deaths. According to the NYDMV, in 2009, 5,500 people were killed in accidents involving a distracted driver. Over 400,000 were injured.

Although the law may be seen as a deterrent, New York’s government, which is broke, can use the money. The NYDMV estimates that they issue about 300,000 tickets for cell phone violations annually. That’s about $3 million in revenue a year.

—Theo Romeo