Underinsured Motorist (UIM) Benefits

Underinsured Motorist (UIM) benefits in Nevada are designed to provide financial protection when a driver is injured in an accident caused by another driver who does not have enough insurance to cover the damages. Here’s what you need to know:

1. What Are Underinsured Motorist Benefits?

UIM benefits cover the gap between the at-fault driver’s liability insurance and the actual damages suffered by the insured driver and passengers.

2. Nevada Law on UIM Coverage

• Nevada does not require drivers to carry UIM coverage, but insurance companies must offer it.

• Policyholders can reject UIM coverage in writing if they choose not to have it.

• UIM coverage applies only when the at-fault driver's insurance is insufficient to cover all damages.

3. How UIM Benefits Work

• If the at-fault driver’s liability coverage is exhausted, UIM benefits may kick in to cover remaining medical expenses, lost wages, and other damages.

• The insured person must file a claim with their own insurance provider to access UIM benefits.

4. Stacking UIM Coverage

Nevada allows "stacking" of UIM coverage, meaning if an insured person has multiple vehicles with UIM coverage under the same policy, they may be able to combine (stack) the limits of each policy for a higher payout.

5. Filing a UIM Claim in Nevada

• The injured party must first recover the full amount available from the at-fault driver’s insurance.

• After exhausting the at-fault driver's policy, they can submit a claim under their own UIM coverage.

• The insurance company may require proof of damages and settlement with the at-fault driver’s insurer before paying out benefits.

6. Legal Considerations

• Insurers may dispute UIM claims, so legal representation can be beneficial.

• Nevada follows a comparative negligence rule, meaning if the injured party is partially at fault, their compensation may be reduced.