WHY DO I NEED UNDERINSURED MOTORIST COVERAGE
As I have practiced personal injury law over the last 35 years, I have come to the conclusion that most insurance agents should be sued for insurance coverage malpractice. I am amazed at how many drivers are operating their vehicles with insufficient coverage. The typical Nevada driver has minimal state required limits with no medical payments or underinsured motorist coverage. Apparently, the concern of most insurance agents is making sure their insureds have sufficient coverage to protect the other person instead of focusing on protecting their own insured.
If you are involved in an accident in Nevada and the other driver as at fault, the odds are pretty good that the other driver is driving with minimal limits of $25,000.00 per individual and $50,000.00 per accident. That is just great so long as your damages are $25,000.00 or less. What happens when you get in an accident with multiple cars involved with one driver primarily at fault. There may be 2, 4 or 6 people injured. All of a sudden, that $25,000.00 in minimal coverage the driver at fault has does not seem sufficient to cover everyone’s damages.
Inevitably, drivers need underinsured motorist coverage. Then if you are involved in an accident with an underinsured at fault driver, you have your own coverage to pay for whatever damages you may have. Underinsured motorist coverage works as follows:
If the driver at fault only has a $25,000.00 policy but your damages are $50,000.00. You can maximize the other driver’s coverage and once they have paid, you can access your own underinsured motorist coverage for the difference between what your actual damages are and the other driver’s coverage. In other words, if your damages are $50,000.00, you can receive $25,000.00 from your underinsured motorist insurance after you have been paid the $25,000.00 from the other driver’s insurance.
Your underinsured motorist coverage typically matches your liability coverage. In other words, if you have $100,000.00 of liability coverage, your insurance carrier will only give you a maximum of $100,000.00 underinsured motorist coverage. The more liability coverage you have, the more underinsured motorist coverage you can have for your own protection.
If you are driving in Nevada with no underinsured motorist coverage, you are underinsured. it is time to contact your insurance agent or better yet, it is time to hire a new insurance agent to pick up underinsured motorist coverage.