When you drive in Nevada, the law requires you to carry a minimum amount of auto insurance. Nevada is a fault state, which means that after a car accident or automobile accident, the driver who caused the collision is generally responsible for the injuries and property damage.
Nevada’s Minimum Auto Insurance Requirements
- 25,000 for bodily injury per person
- 50,000 for bodily injury per accident
- 20,000 for property damage per accident
Why Minimum Coverage Falls Short After a Serious Car Accident
These numbers may sound substantial, but modern car accident costs add up quickly. A single emergency room visit after a serious automobile accident, combined with an ambulance ride, imaging like CT scans or MRIs, and a brief hospital stay, can exceed 25,000. When you add follow‑up treatment, physical therapy, lost wages, and ongoing pain from the crash, the total cost of a serious motor vehicle accident can be many times higher.
Many Nevada drivers carry only these minimum limits. Some drivers involved in car crashes carry no insurance at all. That is precisely why uninsured and underinsured motorist coverage is so valuable after an automobile accident—and why Oronoz & Ericsson strongly encourages drivers to review their policies before a serious crash ever occurs.
What Is UM/UIM Coverage in Nevada Car Accident Cases?
Uninsured motorist (UM) and underinsured motorist (UIM) coverage are designed to protect you, your family, and your passengers when the at‑fault driver in a car accident or automobile collision does not have liability insurance or has too little.
Nevada law requires auto insurers to offer UM/UIM coverage with every policy. You do not have to buy it, but your insurer must give you a real opportunity to accept or reject it when you purchase or renew your automobile insurance. If you choose not to carry UM/UIM or choose low limits, you will typically sign or acknowledge a form showing that decision.
What UM/UIM Can Cover After a Car Accident
- Medical bills from the auto accident, now and in the future
- Lost wages and loss of earning capacity because of the crash
- Pain, suffering, and loss of enjoyment of life after the automobile accident
- Sometimes property damage from the collision, depending on your policy language
You can think of UM/UIM as personal protection that follows you into almost any car crash: if the other driver’s insurance is missing or inadequate after a motor vehicle accident, your own policy steps in to help cover your losses. When Oronoz & Ericsson evaluates a car accident claim, one of the first questions is always, “What UM/UIM coverage is available?”
Uninsured vs. Underinsured in Auto Accidents
Although uninsured and underinsured motorist coverage are often mentioned together, they apply to different car accident and automobile accident scenarios.
Uninsured Motorist (UM) Coverage in Nevada Car Accidents
You are dealing with an uninsured driver when:
- The at‑fault driver in the car accident has no auto liability insurance at all
- The driver’s policy has been canceled or voided
- The driver flees the scene of the automobile accident and is never identified (a hit‑and‑run collision)
In these traffic accident situations, there is no liability insurance available from the other driver. Your UM coverage then acts like the missing policy for that crash, up to your UM limits.
Underinsured Motorist (UIM) Coverage in Nevada Auto Accidents
You are dealing with an underinsured driver when:
- The at‑fault driver in the auto accident has liability insurance, but the limits are lower than your total damages
- The other driver’s coverage is lower than your own UM/UIM limits, so your policy can provide additional protection
Nevada treats UIM as “excess” coverage. That means in a car accident claim, your UIM coverage is added on top of the at‑fault driver’s liability coverage rather than being reduced by it.
Example of How UIM Works in a Nevada Car Accident
- The at‑fault driver in the crash has 25,000 in bodily injury liability coverage.
- You carry 100,000 in UIM coverage on your auto policy.
- Your total damages from the car accident—medical bills, lost wages, and pain and suffering—are 200,000.
In Nevada:
- You can collect the 25,000 liability limit from the at‑fault driver’s insurer for the accident.
- You can then seek up to an additional 100,000 from your own UIM coverage.
Together, that gives you up to 125,000 of potential compensation for the car accident, assuming your damages support that amount. You may still not be fully compensated, but you are far better off than if you had no UIM coverage for that automobile collision.
At Oronoz & Ericsson, this is a common pattern in serious injury cases: the at‑fault driver’s insurance is only the starting point, not the finish line.
Why Nevada Insurers Must Offer UM/UIM for Auto Accidents
Nevada’s lawmakers have made it clear that protecting drivers and passengers from uninsured and underinsured motorists is a strong public policy. To support that goal, auto insurance companies must offer UM/UIM coverage whenever they issue or renew a motor vehicle policy.
UM/UIM Offer Requirements Under Nevada Law
For your car accident protection, this means:
- Your insurer must offer at least the same minimum limits as Nevada’s liability minimums for UM/UIM.
- If you choose higher liability limits for your automobile insurance, your insurer must also offer you UM/UIM limits up to those higher amounts.
- If you choose lower UM/UIM limits or reject this protection for car crashes, the company will typically document that decision with a signed form.
When Courts Reform Auto Insurance Policies
When insurers fail to follow these rules, Nevada courts have sometimes “reformed” the policy, effectively treating it as though UM/UIM coverage exists up to your bodily injury liability limits. For someone injured in a car accident or automobile collision, that can mean the difference between having no meaningful coverage and having a substantial pool of funds to cover medical bills and other losses.
In disputed cases, Oronoz & Ericsson will often examine the insurer’s paperwork closely to see whether UM/UIM should be treated as in force.
Stacking UM/UIM Coverage for Car Accident Protection
“Stacking” UM/UIM coverage is another feature of Nevada law that can dramatically impact victims of serious car accidents and automobile accidents.
Stacking means combining the UM/UIM limits from more than one vehicle or policy to increase the total amount of coverage available for a single crash. This can be crucial in high‑impact auto accidents that cause extensive injuries.
Example of UM/UIM Stacking After a Car Accident
- You have one automobile insurance policy covering three vehicles.
- Each vehicle carries 25,000 in UM/UIM coverage per person for car accidents.
- The policy language does not clearly and validly prevent stacking.
If stacking is allowed, and you are injured in a motor vehicle accident while riding in one of those cars, you may be able to combine the three 25,000 limits for a total of 75,000 in UM/UIM coverage for that automobile collision.
Some policies include anti‑stacking language to limit this practice. Whether stacking is allowed often depends on the specific wording and how Nevada courts interpret it. When someone comes to Oronoz & Ericsson after a serious car wreck, one of the tasks is to analyze all available policies to see whether stacking or other coverage arguments can increase the total recovery.
How UM/UIM Claims Work After a Car Accident
Even though UM/UIM is part of your own auto insurance, pursuing a UM or UIM claim after a car accident or automobile accident can feel adversarial. The insurance company still has an interest in limiting what it pays, and you still must prove your injuries and losses from the crash.
When a UM or UIM Claim is Triggered
A UM or UIM claim usually arises when:
- You are injured in a car accident where another driver is at fault.
- That driver is uninsured, underinsured, or disappears after the automobile accident.
- Your damages from the collision exceed the coverage available from that driver’s policy, if any.
The UIM Claims Process After Liability Coverage is Exhausted
In many underinsured motorist cases, policies require you to “exhaust” the at‑fault driver’s liability limits before your UIM coverage becomes payable. This commonly involves:
- Receiving medical care and evaluating your injuries from the car crash.
- Gathering medical records, bills, wage loss information, and other evidence tied to the automobile accident.
- Having your attorney demand the at‑fault driver’s liability limits when your damages clearly exceed those limits.
- Once those limits are paid or formally offered, your attorney presents a UIM claim to your own insurer for the remaining car accident damages, up to your UIM limits.
Your insurer then evaluates the auto accident claim, may request more information, and often negotiates the amount. Even though you are their insured, they may dispute the severity of your injuries, causation, or the value of your car accident claim. Oronoz & Ericsson routinely handles this process for clients, pushing back when insurers undervalue car crash injuries or rely on incomplete investigations.
Bad Faith in UM/UIM Handling After Automobile Accidents
Because UM/UIM is first‑party coverage, Nevada law recognizes that an insurance company owes its policyholders a duty of good faith and fair dealing. In the context of car accidents and automobile collisions, this means the company must fairly evaluate your UM/UIM claim, conduct a reasonable investigation, and not unreasonably delay or deny payment of benefits owed for the crash.
Common Examples of Bad Faith in UM/UIM Claims
Bad faith in UM/UIM claims can include:
- Refusing to pay car accident benefits without a reasonable basis
- Unreasonably delaying investigation or payment on a clear automobile accident claim
- Failing to conduct a thorough and balanced investigation of your injuries, treatment, and the collision
- Misstating what the policy covers or misrepresenting Nevada law on excess‑type UIM in an auto accident case
- Pressuring you into accepting a settlement that is far below the fair value of your car accident damages
- Failing to keep you informed about settlement opportunities and important developments that affect your claim
If an insurer acts in bad faith when handling a UM or UIM claim after a car wreck, the policyholder may seek not only the benefits owed under the auto policy but also additional damages for the harm caused by that misconduct. In particularly serious cases, courts may award punitive damages to discourage similar behavior in future car accident disputes.
Oronoz & Ericsson evaluates not only the underlying car accident claim but also whether the insurer’s conduct might support a separate bad faith action.
Why UM/UIM Coverage Is Critical for Nevada Car Accident Victims
You might be a cautious driver who rarely thinks about auto accidents. However, you cannot control how carefully other people drive or how much insurance they buy. When a serious car accident happens, the coverage available depends not only on your decisions but also on the decisions of the person who caused the automobile collision.
Several realities make UM/UIM coverage essential for Nevada drivers and passengers:
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Many Nevada Drivers Are Uninsured or Underinsured
A significant number of Nevada motorists either fail to purchase auto insurance or buy only the minimum required by law. At the same time, the cost of medical treatment for car accident injuries continues to rise, as do the costs of repairing or replacing modern vehicles after collisions.
If you rely only on other drivers’ policies, you are effectively betting that anyone who causes a car accident with you will have enough insurance to cover your losses. For many people, that is not a safe or realistic bet. Oronoz & Ericsson often meets clients who discover this only after a serious automobile accident, when it is too late to change their coverage.
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Hit‑and‑Run Accidents Leave Victims Without Answers
Hit‑and‑run car accidents are a serious problem in urban areas such as Las Vegas, Henderson, and Reno. If a driver causes a collision and flees the scene, you may never learn who they are or which insurance company covers them.
In those circumstances, your uninsured motorist coverage treats the unknown driver as uninsured, giving you a way to pursue compensation for your car accident injuries and damages through your own policy. Without UM coverage, you may have no meaningful way to recover losses from a hit‑and‑run automobile accident.
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UM/UIM Coverage Protects Your Family and Passengers
UM/UIM coverage often protects more than just the named insured. Depending on the policy language, it can extend to:
- Family members who live in your household
- Passengers riding in your vehicle during the car accident
- Sometimes you or family members when riding in other vehicles or as pedestrians
This means your UM/UIM coverage decisions affect not just your own protection in automobile accidents, but also the safety net available to your spouse, children, and friends when they are injured in a car crash with you. Oronoz & Ericsson takes this into account when helping clients think through their insurance needs after a serious collision.
A Real-World Comparison: Minimum Coverage vs. Strong UM/UIM
Consider a Nevada driver who carries only the state minimum liability coverage and declines UM/UIM protection.
One day, this driver stops at a red light and is rear‑ended in a car accident. The driver who causes the collision has no auto insurance. The innocent driver suffers a serious back injury, needs injections and extensive therapy, and misses several weeks of work. The total damages from this automobile accident—medical bills, lost income, and pain and suffering—reach 80,000.
Because the at‑fault driver is uninsured and has no meaningful assets, there is no liability insurance to pay for this car accident. If the injured driver did not buy uninsured motorist coverage, they have almost no practical way to recover the 80,000 in losses tied to this crash.
Now imagine the same auto accident, but this time the injured driver carries 100,000 in UM/UIM coverage. Their own policy now steps in as the missing liability coverage for the car accident. They can make a UM claim against their insurer, and if successful, recover up to their policy limits for the collision.
In both automobile accident scenarios, the fault is identical. What changes the outcome is the injured driver’s decision to carry or decline UM/UIM coverage long before the car crash ever happened. This is exactly the kind of situation Oronoz & Ericsson sees regularly when advising car accident victims.
How Much UM/UIM Coverage Should You Carry for Auto Accidents?
There is no single answer that fits every driver, but there are practical guidelines to help you evaluate your car accident protection.
Match Your UM/UIM Limits to Your Liability Coverage
At least match your liability limits. Because Nevada requires insurers to offer UM/UIM limits up to your liability limits, a common recommendation is to carry at least as much UM/UIM as you carry in bodily injury liability coverage for auto accidents.
For example:
- If your auto policy has 100,000 per person and 300,000 per accident in liability coverage, it is wise to consider 100/300 in UM/UIM coverage as well for car accidents and automobile collisions.
Many people make the mistake of carrying relatively high liability limits—which protect others they might injure in a crash—while keeping low UM/UIM limits, which are the coverage that protects them and their families in car accidents someone else causes.
Aligning these limits better reflects the real risks of modern automobile accidents. Oronoz & Ericsson often recommends that clients review their policies with this in mind.
Life and Driving Factors That May Call for Higher UM/UIM Limits
You may want higher UM/UIM coverage if:
- You regularly drive on highways like I‑15 or U.S. 95, where high‑speed car accidents can be severe
- You commute in crowded urban traffic, where automobile collisions are more likely
- You have dependents who rely on your income
- You have a mortgage or other long‑term financial obligations
- You ride a motorcycle, where accidents often cause serious injuries because there is less physical protection
In each of these circumstances, the financial impact of a major car accident can be enormous. Strong UM/UIM coverage makes it more likely that you will have sufficient resources to recover physically and financially from a serious automobile accident.
Common Misunderstandings About UM/UIM in Car Accident Cases
Several misunderstandings can leave Nevada drivers exposed when a car crash happens.
“Full Coverage” Does Not Always Include UM/UIM
Many people tell others, “I have full coverage,” and assume that means they are fully protected in any car accident. In practice, “full coverage” often just means the policy includes:
- Liability insurance to pay others if you cause a crash
- Collision coverage to repair your own car after an accident you cause
- Comprehensive coverage to pay for non‑collision losses like theft or hail
This does not guarantee that you have UM/UIM or that your UM/UIM limits are adequate for serious automobile accidents. To know your real car accident protection, you must check:
- Whether UM/UIM coverage appears on your declarations page
- What the dollar limits are for that coverage in the event of a crash
Oronoz & Ericsson often begins a car accident consultation by reviewing these exact items with a client.
Assuming the At-Fault Driver Will Have Enough Insurance
Many drivers assume that if they are injured in a car wreck, the other driver’s insurance will “take care of everything.” Unfortunately, many at‑fault drivers in auto accidents carry only the legal minimum or nothing at all.
If you sustain serious injuries in a car accident and the at‑fault driver has only minimum limits, their policy may cover only a small portion of your losses. Adequate UM/UIM coverage is how you protect yourself from this common automobile accident reality.
Failing to Update UM/UIM After Major Life Changes
It is easy to set your auto insurance once and never revisit it. However, your risk from car accidents can grow over time. It is wise to review your UM/UIM coverage whenever you experience major changes, such as:
- Getting married or divorced
- Having children
- Buying a home
- Changing jobs, income levels, or commute patterns
- Moving to a busier area with more traffic accidents
- Purchasing a motorcycle or additional vehicles
These changes can increase both the likelihood and the financial impact of serious car accidents in your life. Updating your UM/UIM coverage helps keep your automobile accident protection aligned with your current situation.
What To Do After a Car Accident That May Involve UM/UIM
If you are involved in a car accident in Nevada and suspect the other driver may be uninsured or underinsured, your actions after the crash can significantly affect your ability to use UM/UIM coverage.
Immediate Steps to Protect Your UM/UIM Rights After a Crash
Here are practical steps to take after a motor vehicle accident:
- Call law enforcement if there are injuries or significant damage, so there is an official accident report.
- Gather information at the scene: the other driver’s name, contact details, license plate, and insurance information.
- Take photos of the vehicles, the accident scene, and any visible injuries, if you can do so safely.
- Notify your own insurance company promptly that a car accident occurred and that UM/UIM coverage may be involved.
- Seek medical evaluation quickly, both to protect your health and to document your automobile accident injuries.
- Consider speaking with Oronoz & Ericsson, or another Nevada personal injury attorney, especially if your injuries are significant or your coverage situation is complex.
UM/UIM claims after serious automobile crashes can involve multiple vehicles, several policies, health insurance liens, stacking questions, and potential bad faith disputes. Professional guidance can make a major difference in the outcome of your car accident claim.
Why UM/UIM Should Be Part of Every Nevada Driver’s Car Accident Safety Plan
When you look at the full picture, uninsured and underinsured motorist coverage is not just an optional extra. It is a central part of a sound car accident safety plan for Nevada drivers, passengers, and motorcyclists.
Key reasons include:
- Nevada’s minimum liability limits are low compared to the potential cost of serious car accident injuries and vehicle damage.
- Many drivers on the road are either uninsured or underinsured, leaving major gaps after automobile accidents.
- UM/UIM coverage provides a direct way to protect yourself and your family when someone else’s insurance is missing or insufficient after a car crash.
- Nevada’s excess‑type UIM structure means your UIM coverage truly increases the total amount available to compensate you after an auto accident.
- Courts recognize that insurers owe a duty of good faith when handling UM/UIM claims, giving you important rights if your insurance company mistreats you after a car accident.
The most important decisions about car accident protection are made long before a collision occurs, when you choose your auto insurance coverages and limits. Taking the time now to review your policy, ask about UM/UIM, and increase your limits, if necessary, can make an enormous difference in your recovery if you are ever injured in a Nevada car accident or automobile accident.
Trusted Legal Help for UM/UIM Car Accident Claims in Nevada
Oronoz & Ericsson stands ready to help car accident victims understand their rights, evaluate their UM/UIM coverage, and pursue the full compensation the law allows. By treating UM/UIM coverage as essential—not optional—you give yourself and your family a much better chance of being truly protected on Nevada’s roads whenever an unexpected car accident or automobile crash occurs.
If you or a loved one is injured in a car accident anywhere in the Las Vegas Valley, call the lawyers at Oronoz & Ericsson, at (702) 878-2889. We can help.