Day & Nance
Underinsured Motorist Coverage: Can't Live Without It
Uninsured or underinsured motorist coverage is a necessity if you are driving on Nevada roads or anywhere else in the United States. A large segment of people operating motor vehicles on roads are either uninsured or underinsured. Uninsured or underinsured motorist coverage is coverage available to you under your auto policy to pay your damages if you are involved in an accident with another driver who is either uninsured or underinsured. In other words, you may be involved in an accident resulting in $50,000.00 damages to you. If the other driver has the state mandated minimal limits of $15,000.00, you are $35,000.00 short of what you have been damaged. In this case, you would turn to your underinsured motorist coverage for the difference. If the other driver has $15,000.00 in coverage and you settle the case with the other driver for less than $15,000.00, your underinsured motorist carrier gets a credit of $15,000.00 or the other driver's policy limits. Nevada Revised Statute 687B.385 states your insurance carrier cannot raise your rates or cancel your auto insurance policy if you file an underinsured motorist carrier claim for an accident that was not your fault.