What If the At-Fault Driver Only Has Nevada Minimum Insurance?

A serious crash can create more than $25,000 in losses before you even leave the hospital. Yet $25,000 may be all the other driver’s insurer has to pay for one injured person.

When an adjuster offers the full policy soon after the crash, it usually means your claim is already worth more than the coverage available. The offer is not extra money. It is the most that policy will pay.

Nevada’s minimum limits are $25,000 for one injured person and $50,000 for everyone hurt in the same crash. If your losses go beyond that, the rest may have to come from your own underinsured motorist coverage, another responsible party, an employer’s policy, or the driver’s personal assets.

Nevada UIM coverage may add to the payment from the at-fault driver’s insurer. It does not simply replace that payment.

What Nevada’s 25/50/20 Limits Mean

Nevada drivers must carry at least:

• $25,000 for injury or death to one person
• $50,000 for injury or death to two or more people
• $20,000 for property damage

These limits took effect on July 1, 2018, replacing the former 15/30/10 limits. The $25,000 limit must cover the full injury claim. Medical care, surgery, therapy, lost wages, future treatment, and pain and suffering all come from the same amount.

That money can disappear quickly. An air ambulance or a short hospital stay may use most of the policy before lost income and long-term care are even considered.

Where The Rest Of The Money Comes From

Four sources cover the gap in most Nevada cases, and they are worth checking in order.

• Your own UM/UIM coverage. Nevada requires insurers to offer uninsured and underinsured coverage in an amount equal to the bodily injury limits you bought. Many drivers carry it without realizing it.
• A second at-fault party. If the driver was working, the employer’s commercial policy may respond. Rideshare platforms carry far higher contingent limits during active periods.
• Umbrella coverage. Yours or theirs. Umbrella policies sit above the auto policy and rarely appear on the declarations page an adjuster produces first.
• The driver personally. Legally available, practically rare. A minimum-limits driver usually has little that is collectible.

Nevada UIM Coverage Can Add To The Other Driver’s Policy

Nevada underinsured motorist coverage may pay on top of the at-fault driver’s insurance.

Under NRS 687B.145, UIM coverage applies when your damages exceed the other driver’s bodily injury limit. So, if the at-fault insurer pays $25,000 and you have $100,000 in UIM coverage, you may have up to $125,000 available.

Nevada law also allows insurers to limit how several policies are combined. Those limits may not apply, however, when separate coverage was bought for the same risk, and a separate premium was paid.

For households with more than one insured vehicle, each declaration page and policy should be reviewed before deciding how much coverage is available.

Coverage Worth Checking

Be Careful With a Fast Policy-Limit Offer

An insurer may offer the full $25,000 soon after a serious crash. That often means it already knows the claim is worth more. Do not assume accepting the money is a simple step.

Your UIM policy may require notice before you settle with the other insurer. Signing a release may also end claims against people or companies that should remain part of the case.

Before accepting the offer, find out:

• Whether it is the full policy limit
• Who the release protects
• Whether your UIM insurer was notified
• Whether another party shares fault
• Whether an employer or umbrella policy exists
• How medical liens will be paid

The wording of the release matters as much as the amount offered.

Frequently Asked Questions

Can I sue the driver for the remaining losses?

Yes, but winning a judgment does not guarantee payment. The driver must have income, property, or other assets that can be reached.

Will using UIM coverage raise my insurance rate?

A UIM claim does not mean you caused the crash. Any effect on your premium depends on your insurer and policy history.

What happens if I did not buy UIM coverage?

You may need to rely on the at-fault policy, another responsible party, an umbrella policy, or the driver’s personal assets.

Should I accept a quick offer for the full policy?

Not before all policies and release terms are checked. Accepting too early could affect your UIM claim or other sources of recovery.

Look Beyond the First Insurance Policy

Nevada’s $25,000 minimum may limit what the at-fault driver’s insurer must pay. It does not always limit the value of the whole case.

Additional payment may come from your UIM coverage, an employer, a business, an umbrella policy, or another party that shares fault. Those options should be checked before any release is signed.

Gina Corena & Associates reviews available insurance and possible sources of payment before a case is settled. The firm’sb Las Vegas injury team offers a free case review.

Sources

• Nevada Division of Insurance – Higher Minimum Vehicle Liability Requirements
• Nevada Public Law – NRS 687B.145: Uninsured and underinsured motorist coverage; proration
• Justia – NRS 11.190: Periods of limitation