Uninsured vs. Underinsured Motorist Coverage in Nevada

• August 1 2026
• |   Car Accidents

Most Reno drivers buy car insurance, assuming it protects them. But Nevada law draws a sharp line between two types of protection that are easy to confuse: uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage. The difference between UM and UIM insurance in Nevada is not just a vocabulary lesson. It determines whether your own insurer pays when the at-fault driver cannot.

This guide breaks down both coverage types, explains how each is used under Nevada law, and clarifies what Reno-area claimants commonly get wrong.

Key Takeaways:

• Nevada requires every auto insurer to offer UM coverage; drivers must reject it in writing to opt out.
• UM coverage applies when the at-fault driver has no liability insurance, including in hit-and-run cases in Nevada.
• UIM coverage applies when the at-fault driver has liability insurance, but those limits fall short of your actual damages.
• Nevada follows a gap approach to UIM: your UIM limits must exceed the at-fault driver’s limits before UIM coverage activates.
• Stacking UM/UIM coverage across multiple vehicles is permitted in Nevada unless the policy expressly prohibits it.

What Is Uninsured Motorist Coverage in Nevada Liability Legislation?

The Legal Foundation Under NRS 687B.145

Nevada Revised Statutes 687B.145 requires every auto insurer in the state to offer UM coverage as part of any liability policy. UM coverage steps in when the at-fault driver has no liability insurance at all. Specifically, it covers your bodily injury damages, including medical bills, lost wages, and pain and suffering, when the person who hit you is completely uninsured.

Who Counts as an Uninsured Motorist in Nevada?

Under Nevada law, an uninsured motorist is not limited to drivers with zero coverage. The definition also includes hit-and-run drivers who cannot be identified, and drivers whose insurers deny coverage or become insolvent. In practical terms, if you are hit in Reno by a driver who flees the scene, your UM coverage is the mechanism that stands in for the at-fault party.

How UM Coverage Pays Your Claim

Your own insurer steps into the shoes of the at-fault driver. You file a UM claim with your own insurance company, and they pay damages up to your policy limits. The insurer then holds a right of subrogation, meaning they can pursue the uninsured driver directly, but that recovery process does not affect your payout timeline.

The Difference Between an Uninsured vs. an Underinsured Motorist Claim, Nevada-Based Policy

The Core Distinction Between UM and UIM

The primary difference between UM and UIM insurance in Nevada is the at-fault driver’s coverage status. UIM coverage does not apply to drivers with no insurance. In contrast, UIM applies when the at-fault driver carries liability insurance, but their limits are too low to compensate for your damages fully.

How Nevada Calculates the UIM Trigger

Nevada uses the gap method. Your UIM coverage only activates if your UIM policy limits exceed the at-fault driver’s liability limits. For example, if the at-fault driver carries $25,000 in liability coverage and you carry $100,000 in UIM coverage, your UIM policy can pay up to $75,000. That is the gap between their limits and yours. If your UIM limits match or fall below theirs, no UIM benefit is owed.

When Underinsured Motorist Claims in Nevada Get Complicated

Insurers frequently dispute the extent of your injuries, question whether your damages actually exceed the at-fault driver’s policy, or argue that you have already been made whole. Many underinsured motorist claims in Nevada involve a prolonged negotiation phase with your own insurer before any additional payment is authorized.

Nevada’s UM/UIM Stacking Rules

What Stacking Means for Nevada Policyholders

Stacking allows you to combine UM/UIM coverage limits from multiple vehicles on the same policy or, in some cases, across separate policies within the same household. Nevada permits inter-policy stacking unless the policy language expressly prohibits it. The insurer must use clear and specific language to exclude stacking for that prohibition to hold.

Why Stacking Matters in Serious Reno Accident Claims

In a catastrophic injury case, a single UM/UIM policy may not be enough. Stacking multiple vehicle policies can substantially increase available coverage. Many Reno claimants do not know they have this option until an attorney reviews all active policies in the household and identifies where stacking may apply.

Practical Steps When You Have a UM or UIM Claim in Nevada

Before filing, gather documentation supporting the at-fault driver’s coverage status. Many claimants find it helpful to take the following steps:

• Request the police report, which typically lists the other driver’s insurance information or confirms there was none.
• Send written notice of your UM/UIM claim to your insurer promptly to preserve your rights under the policy.
• Review your declarations page carefully to confirm your UM and UIM limits.
• Ask whether multiple vehicles in your household may allow for stacked coverage.
• Consider speaking with an attorney before accepting any settlement offer from your own insurer, especially if stacking or the gap calculation could raise what you are owed.

What Nevada Insurers Are Required to Do

Nevada law requires insurers to acknowledge your UM/UIM claim, conduct a prompt investigation, and respond to settlement demands within a reasonable time. Specifically, they cannot deny a UM claim solely because you reported your claim later, unless the delay actually prejudiced the insurer’s ability to investigate.

Ask Leverty & Associates

Can I make a UM claim if the at-fault driver had insurance that lapsed?

Yes. If the at-fault driver’s policy was not active at the time of the collision, Nevada law treats them as uninsured. Your UM coverage should apply. The insurer may request proof of the lapse, which your attorney can help you obtain.

Does Nevada require me to sue the uninsured driver before my insurer pays?

No. Under NRS 687B.145, you do not need to obtain a judgment against the uninsured motorist first. Your insurer steps into that role directly. Some policies require arbitration for disputed claim amounts, so review your policy language carefully.

My insurer says my UIM limits match the other driver’s, so no UIM applies. Is that right?

This is a common basis for denial. Review your policy carefully, because the comparison must be made correctly under Nevada law. If there is any ambiguity in how the limits are calculated, an attorney can evaluate whether the insurer’s position is legally supportable.

Did You Know?

Nevada has a higher-than-average rate of uninsured drivers, which is one reason UM coverage matters so much for local drivers. Reno’s location on major transit corridors like I-80 and US-395 adds to the risk, since transient drivers passing through may not carry the coverage Nevada law requires.

Frequently Asked Questions: The Difference Between UM and UIM Insurance Nevada-Based Plans

Is UM coverage mandatory in Nevada?

Insurers must offer UM coverage, but drivers can reject it in writing. If you have an existing Nevada policy and never signed a written rejection, you likely have UM coverage. Check your declarations page to confirm the limits in place.

Can I use both UM and UIM coverage on the same claim?

No. UM and UIM are mutually exclusive. UM applies when there is no liability coverage at all; UIM applies when liability coverage falls short. You cannot activate both coverages for a single accident.

Does Nevada UM/UIM coverage protect passengers in my vehicle?

Yes. Passengers in your vehicle who are injured in a collision with an uninsured or underinsured driver are typically covered under your UM/UIM policy, subject to your policy limits. The same coverage that protects you extends to covered individuals in the vehicle.

What if the at-fault driver was a government employee in an uninsured vehicle?

The Nevada Tort Claims Act governs claims against government entities in Nevada and involves strict written notice deadlines. Your own UM/UIM coverage may still apply as a separate source of recovery, but the procedural requirements differ significantly from a standard UM claim.

Does the uninsured driver’s citation status affect my UM claim?

A citation is helpful supporting evidence, but is not required. The relevant question is whether the other driver was at fault for the collision. Witness statements, physical evidence, and the police report can all establish fault independently of whether law enforcement issued a ticket.

Before the Claim Gets More Complicated, Learn More Now About Uninsured vs. Underinsured Motorist Coverage in Nevada

The window between a collision and a coverage dispute closes faster than most policyholders expect. Nevada UM/UIM law involves specific timelines, stacking rules, and offset calculations that insurers rarely explain to claimants voluntarily.

At Leverty & Associates Law, we handle UM and UIM disputes on a contingency basis. No attorney fees unless we recover. If you are unsure how your policy reads or why your insurer is disputing your claim, consult a lawyer. You can find out how to cover a claim by calling our Reno office at (775) 322-6639 or our Las Vegas office at (702) 507-0201.