UM/UIM coverage is insurance you buy to protect yourself when the at-fault driver either (1) has no liability insurance (uninsured motorist, UM) or (2) has too little liability insurance to cover your damages (underinsured motorist, UIM). In Nevada, UM/UIM is one of the most important coverages for serious injury cases because many drivers carry only minimum limits, and some carry none.
1) Nevada requires insurers to offer UM/UIM coverage
Nevada’s UM/UIM statute governs these coverages and requires auto insurers to offer them in the manner required by statute, and insureds may accept or reject coverage consistent with the statute (NRS 687B.145).
2) UM coverage
Uninsured motorist (UM) coverage generally applies when the at-fault driver has no applicable liability insurance, or when the at-fault vehicle qualifies as “uninsured” under Nevada’s definitions and your policy. Nevada’s statutes include definitions and rules for when an uninsured motor vehicle exists, including hit-and-run situations under defined conditions (NRS 690B.020).
UM is intended to place you in a similar position to the one you would be in if the at-fault driver had adequate insurance, subject to your policy limits and Nevada law (NRS 687B.145).
3) UIM Coverage
Underinsured motorist (UIM) coverage typically applies when the at-fault driver has liability insurance, but those policy limits are not enough to cover the value of your damages. UIM is often critical in catastrophic injury cases where medical expenses and wage loss quickly exceed Nevada’s minimum liability limits (NRS 485.185; NRS 687B.145).
4) Hit-and-run drivers, UM coverage, and the “physical contact” issue
Hit-and-run claims are a common UM scenario, but Nevada has strict requirements for certain “unknown driver” cases.
Nevada’s statutory definition of an uninsured motor vehicle can include a hit-and-run vehicle under specified conditions (NRS 690B.020). Nevada Supreme Court decisions have interpreted those requirements strictly, including the concept of actual physical contact in certain hit-and-run scenarios. Kern v. Nev. Ins. Guar. Ass’n, 109 Nev. 752, 856 P.2d 1390 (1993). Nevada has also recognized UM benefits in a hit-and-run context under the statute. Farmers Ins. Exch. v. Neal, 119 Nev. 62, 64 P.3d 472 (2003).
Nevada also has long-standing public policy protections for UM insureds and has invalidated certain policy provisions inconsistent with that policy in appropriate circumstances. Allstate Ins. Co. v. Pietrosh, 85 Nev. 310, 454 P.2d 106 (1969). Nevada courts have emphasized the protective purpose of UM coverage as well. Siggelkow v. Phoenix Ins. Co., 109 Nev. 42, 846 P.2d 303 (1993).
5) UM/UIM claims are first-party claims, that changes the legal landscape
A UM/UIM claim is typically made against your own insurer, not the at-fault driver’s insurer. That means Nevada’s first-party claim handling duties and remedies can apply if the insurer unreasonably delays, denies, or mishandles a valid claim, depending on the facts. Ainsworth v. Combined Ins. Co. of Am., 104 Nev. 587, 763 P.2d 673 (1988). Pemberton v. Farmers Ins. Exch., 109 Nev. 789, 858 P.2d 380 (1993). Guar. Nat’l Ins. Co. v. Potter, 112 Nev. 199, 912 P.2d 267 (1996). Allstate Ins. Co. v. Miller, 125 Nev. 300, 212 P.3d 318 (2009). Nevada’s unfair claims practices statute is also relevant in evaluating claim handling conduct (NRS 686A.310).
6) What you must prove to recover UM/UIM benefits
UM/UIM is not automatic. You generally still must prove:
- The other driver was negligent.
- That negligence caused your injuries.
- The amount of your damages, including medical causation proof where required.
If causation is disputed and is outside common lay understanding, Nevada often requires competent medical expert testimony stated to a reasonable degree of medical probability. Morsicato v. Sav-On Drug Stores, Inc., 121 Nev. 153, 111 P.3d 1112 (2005). Williams v. Eighth Judicial Dist. Court, 127 Nev. 518, 262 P.3d 360 (2011).
7) Deadlines still matter in UM/UIM cases
Even though UM/UIM is a claim against your own insurer, you should still protect the underlying tort deadlines and evidence. Most Nevada personal injury actions must be filed within two years (NRS 11.190(4)(e)).
Nevada Legal Authorities Cited
- NRS 11.190(4)(e).
- NRS 485.185.
- NRS 686A.310.
- NRS 687B.145.
- NRS 690B.020.
- Ainsworth v. Combined Ins. Co. of Am., 104 Nev. 587, 763 P.2d 673 (1988).
- Allstate Ins. Co. v. Miller, 125 Nev. 300, 212 P.3d 318 (2009).
- Allstate Ins. Co. v. Pietrosh, 85 Nev. 310, 454 P.2d 106 (1969).
- Farmers Ins. Exch. v. Neal, 119 Nev. 62, 64 P.3d 472 (2003).
- Guar. Nat’l Ins. Co. v. Potter, 112 Nev. 199, 912 P.2d 267 (1996).
- Kern v. Nev. Ins. Guar. Ass’n, 109 Nev. 752, 856 P.2d 1390 (1993).
- Morsicato v. Sav-On Drug Stores, Inc., 121 Nev. 153, 111 P.3d 1112 (2005).
- Pemberton v. Farmers Ins. Exch., 109 Nev. 789, 858 P.2d 380 (1993).
- Siggelkow v. Phoenix Ins. Co., 109 Nev. 42, 846 P.2d 303 (1993).
- Williams v. Eighth Judicial Dist. Court, 127 Nev. 518, 262 P.3d 360 (2011).
If you need assistance with your personal injury case, don’t hesitate to contact Friedman Injury Law.
Friedman Injury Law
375 N. Stephanie St., Ste. 1411
Henderson, NV 89014
P: (702) 970-4222
W: blakefriedmanlaw.com