Adding Uninsured / Underinsured Motorist To Your Policy

As a responsible, law-abiding citizen, you carry auto insurance, even as you hope that you never have to actually use it. It’s incredibly frustrating then, when you’re hit by an irresponsible, not law-abiding person that has let their coverage lapse. They hit your vehicle, caused thousands of dollars in damage, hefty medical bills, and on top of that, they have no way to pay for damages. Or perhaps they carry minimum coverage, which unfortunately, barely scratches the surface of what the accident costs. Now what?

Technically, the at-fault driver is still on the hook for covering damages, but if they don’t have money for a monthly premium, then what are the odds that they can pay for your colossal repair costs and medical bills?

The Problem with Uninsured/Underinsured Drivers

In the state of Nevada, drivers are legally required to carry liability insurance coverage. This type of auto insurance coverage ensures that if you are responsible for a collision, you can provide compensation for damages caused to the other driver. In a perfect world, every driver would have adequate insurance to provide sufficient financial protection, both for themselves and for any other driver with whom they may have an all-too-close encounter.

This isn’t a perfect world though, is it? The fact is, if you are hit by another driver, there is a 1 in 5 chance that they won’t have insurance coverage. Basically, you’re left with deciding whether you’ll endure the hassle of taking the other driver to court, which may or may not have a satisfactory outcome, or bite the bullet and take on the financial hardship yourself. Either way, you’re probably going to lose a lot of money.

Enter Uninsured and Underinsured Motorist Coverage

Fortunately, there is a third option that doesn’t involve you paying potentially tens of thousands of dollars for someone else’s mistake. Uninsured and underinsured motorist coverage is used when you are hit by a driver that has insufficient coverage or no coverage at all. This optional coverage helps to compensate you for damages, up to your policy limit.

If you have this coverage, then covering the costs of an Uninsured Motorist and Underinsured Motorist (UM/UIM) will restore you back to where you were before the accident if the other “at fault” driver has no liability coverage or not enough coverage.

With UM/UIM coverage, you will be protected for the things that the other “at fault” driver should normally cover. Please note that these limits cannot exceed the Bodily Injury (BI) liability limits.​

Should I Add Uninsured Motorist To My Auto Insurance Policy?

Did you know that on average, 25% of drivers have no auto insurance and another 30% do not have enough insurance in Nevada? This coverage can be an important supplement to protect you from negligent drivers.

If you’re in a car accident caused by an uninsured driver, would you have the means to replace your vehicle? Miss days or weeks of work? Pay any resulting medical bills without financial hardship? If not, then it’s likely in your best interest to add this type of coverage to your policy.

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What Does Uninsured Motorist Insurance Cover?

Bodily Injury

If you or your passengers are injured in a collision in which you are hit (the other guy is “at fault”) by someone with little or no auto insurance liability coverage, your insurance plan’s uninsured motorist coverage will help pay for you and your passengers’ hospital bills, physical therapy, pain and suffering, lost wages, and possible other expenses that may result from injury.

When adding uninsured motorist, it’s important to consider how much coverage you will need. Carefully consider your expenses, your income and any other factors that may be affected if you were injured in an accident.

Coverage Up to Your Policy Limits

To know what to expect from your insurance company in the event of an accident, it’s important that you know the limits of your uninsured motorist coverage.

In most cases, your coverage will adapt to suit how many people were injured in the accident. For example, if your uninsured motorist coverage was 25/50, your coverage may cover up to $25,000 for the driver (the 1st number of your uninsured motorist coverage), and up to $50,000 for the expenses for all persons in your vehicle for total bodily injury or death (the 2nd number).

Once again, it’s essential to note that, like all types of insurance, you are covered only up to your policy limit. If your uninsured motorist coverage is not high enough, and the other guy does not have insurance and is at fault, your insurance company will only pay up to your policy limits.

Medical Payments

This coverage, also called “med pay”, is different than Uninsured Motorist. Med pay covers medical expenses caused by auto accidents in your vehicle, or pedestrians you may hurt, or if you are a passenger in someone else’s car.

I Have Health Insurance; Do I Need Uninsured Motorist?

If you have health insurance, you may wonder if there is any benefit to adding uninsured motorist to your auto insurance policy. However, there are a few things to consider. For example, most health insurance policies do not cover lost wages, whereas uninsured motorist does. Unlike health insurance, uninsured motorist has no deductible that must be met; it pays out until your policy limit is reached. Finally, while you may have health insurance coverage, your passengers may not. Uninsured motorist would cover their medical expenses and other expenses discussed above if they were injured at the time of the accident.

Making a Claim: Will My Rates Go Up?

Even policy holders that have uninsured motorist may hesitate to file a claim out of fear that doing so could cause their rates to go up. Fortunately, Nevada’s insurance laws prevent insurance companies from cancelling or refusing to renew your policy or raising your rate, unless you were responsible for the accident.

Do I Have Uninsured Motorist Coverage?

All car insurance policies are different, and the only way to know whether you have uninsured motorist protection is to check your own policy coverages and levels. If you need help wading through the legal jargon, your auto insurance agent can review your policy with you and make you aware of any gaps in your coverage.