What Is UM/UIM Insurance in Nevada? The Coverage That Protects You When the Other Driver Cannot Pay

Most drivers know liability insurance pays the people you hurt in a crash.

Far fewer drivers can answer a more important question:

What pays you when the driver who hurt you has no insurance, or not nearly enough?

That is the job of uninsured and underinsured motorist coverage, usually shortened to UM/UIM. It is part of your own auto policy, it follows you into other cars and even on foot, and in a city like Las Vegas it is often the coverage that decides whether an injured person recovers anything at all.

What Is Uninsured Motorist (UM) Coverage?

Uninsured motorist coverage steps into the place of a driver who has no liability insurance.

If an uninsured driver causes a crash that injures you, your UM coverage can pay for the losses that driver should have paid, including:

• medical bills
• future medical treatment
• lost wages
• reduced earning capacity
• pain and suffering
• other damages the uninsured driver would owe you

UM also generally applies in a hit and run, when the at-fault driver is never identified. In claims terms, that unknown driver is treated as uninsured.

Related: What to Do After a Car Accident in Las Vegas: 10 Steps That Can Protect Your Claim

What Is Underinsured Motorist (UIM) Coverage?

Underinsured motorist coverage handles a quieter problem: the other driver has insurance, but not enough.

Nevada law only requires drivers to carry liability limits of $25,000 per person and $50,000 per accident for bodily injury, plus $20,000 for property damage (NRS 485.185). One emergency room visit with imaging can consume the per-person limit. A surgery can exceed it several times over.

When the at-fault driver's policy pays its limit and your damages are higher, your UIM coverage can pay the difference, up to your own UIM limit.

Think of it this way:

• UM replaces insurance that does not exist.
• UIM adds to insurance that exists but runs out.

Is UM/UIM Required in Nevada?

Nevada does not force you to buy UM/UIM. It does require your insurer to offer it.

Under NRS 690B.020, every Nevada auto policy must include uninsured motorist coverage, and insurers must offer underinsured motorist coverage, generally at limits matching your liability limits. You can reject or reduce this coverage, but the rejection or reduction generally must be in writing.

That written rejection matters. Many drivers turned UM/UIM down years ago to save a small amount on premiums and never thought about it again, until the day another driver with no insurance changed their life.

Check your declarations page for two lines:

• Uninsured Motorist Bodily Injury
• Underinsured Motorist Bodily Injury

If you do not see them, you may have rejected the coverage in writing at some point, or your limits may be lower than your liability limits.

Why UM/UIM Matters So Much in Las Vegas

Las Vegas combines several risk factors in one place:

• a large number of visitors driving unfamiliar roads, often in rental cars
• heavy pedestrian traffic around the Strip and downtown
• high-speed arterial roads where serious injuries are common
• a significant number of drivers carrying only the state minimum, or no insurance at all

When the at-fault driver is a tourist in a rental car, a driver with a minimum-limits policy, or a hit-and-run driver who is never found, your own UM/UIM coverage may be the only realistic source of recovery.

When Does UM/UIM Apply?

UM/UIM can apply in more situations than most people expect:

• you are hit by a driver with no insurance
• you are hit by a driver whose limits are too low to cover your losses
• you are the victim of a hit and run
• you are a passenger in someone else's car when an uninsured or underinsured driver causes the crash
• you are walking or riding a bicycle and are struck by an uninsured driver
• a member of your household is injured in one of these situations, depending on the policy

The coverage follows the insured person in many situations, not just the insured car. The exact answer depends on your policy language, which is one reason these claims deserve a careful review before anyone concludes there is no coverage.

How Is a UM/UIM Claim Different From a Normal Claim?

In a UM/UIM claim, you are making a claim against your own insurance company.

That changes the relationship. Your insurer is supposed to protect you, but in a UM/UIM claim it steps into the shoes of the at-fault driver and evaluates what it owes you, which can make the process feel adversarial.

A few practical differences:

• Your policy may require prompt notice of the crash, and separate notice if you plan to settle with the at-fault driver.
• Settling with the at-fault driver's insurer without your UM/UIM carrier's written consent can, under some policies, damage or even eliminate your UIM claim.
• Your insurer may dispute fault, the severity of your injuries, or the value of the claim, just as the other driver's insurer would.
• Disputes about UM/UIM value may be resolved through the process your policy provides, which can include arbitration.

That second point surprises people. If the at-fault driver offers their $25,000 limit quickly, signing that release too early can close the door on your own UIM coverage. Do not sign anything before you understand how it affects the rest of your claim.

Related: What the Insurance Adjuster Is Trying to Get You to Say After a Las Vegas Car Accident

How Much UM/UIM Should You Carry?

There is no single right number, but there is a useful rule of thumb:

Your UM/UIM limits are the ceiling on what protects your own family. Your liability limits protect strangers. Many drivers carry strong liability coverage and weak UM/UIM coverage, which protects everyone except themselves.

Because UM/UIM is usually inexpensive compared to liability coverage, matching your UM/UIM limits to your liability limits is one of the cheapest forms of protection available to a Nevada driver. It is a conversation worth having with your insurance agent before a crash, not after one.

En español: Ryan explains this coverage in Spanish in the video ¿Tiene “Full Coverage”? Esta Protección Podría Faltarle.

Hurt by an Uninsured or Underinsured Driver in Las Vegas?

Do not assume there is no recovery available just because the other driver's insurance is missing or small.

Attorney Ryan Alexander and his team can review the at-fault driver's coverage and your own policy, identify every coverage that may apply, and protect your UM/UIM claim before a deadline or a signature closes it.

Free Case Evaluation (702) 333-8888

This article provides general information and does not constitute legal advice. Every accident is different, and different claims may involve different deadlines, insurance policies, and legal issues.