Does Uninsured/Underinsured Coverage Pay for All My Damages?

Published on January 30, 2024, by Law Office of Matthew L. Sharp

Insurance Bad Faith

Does uninsured underinsured coverage pay for all my damages

You expect your insurance policy to cover all the damages when you have been involved in an accident. Many Nevada drivers have the option to purchase additional uninsured/underinsured coverage. If another driver is at fault and has limited or no insurance, it can pay for your losses. But does this coverage pay for all damages? There are a few points to know before you make a claim.

What Is Uninsured Motorist Coverage in Nevada?

Uninsured coverage reimburses you for any losses or damages suffered due to an accident that was another driver’s fault, and the at-fault driver did not have any type of auto insurance coverage. If you have this policy and are injured in a vehicle accident, the coverage will pay for your medical bills. However, the coverage will not reimburse you if you are at fault for the accident.

Regarding the bodily injury coverage, the policy pays for any expenses related to injuries suffered in the crash. You may collect for medical costs, lost wages, and pain and suffering. The policy may also reimburse you for repairing your damaged vehicle.

Is Underinsured Coverage Different?

When someone only has minimal insurance coverage, their policy may not have enough coverage to cover the losses for the other driver. If you have been involved in an accident with an underinsured driver, it can be frustrating to recover reimbursement for your damages. Underinsured coverage helps to fill the gaps between the other driver’s coverage.

In the state of Nevada, all drivers must have 25/50/20 motor vehicle liability insurance. These minimum coverage limits include:

  • $25,000 for bodily injury or death
  • $50,000 for total bodily injury or death
  • $20,000 for property damage to the other vehicle

If you are involved in a serious accident, the other driver’s policy might not cover all your medical bills and property damage. That is where underinsured policies can help. Once the at-fault driver’s policy reaches the maximum limits for the damages, the remaining expenses will be covered by your insurance policy.

Do You Need These Policies?

Unfortunately, around 10.4% of Nevada drivers do not have insurance. If you are involved in an accident with these drivers and have no uninsured /underinsured coverage, it is impossible to recover compensation for your damages.

In some cases, you will have to file a lawsuit against them. But if they cannot afford insurance, they may not have assets to pay for your injuries and property damage. For that reason, uninsured and underinsured coverage is vital if you want to be reimbursed for damages.

According to Nevada state law, you must purchase insured and underinsured coverage together. With that, you don’t have to worry about choosing one policy over another. They are bundled to provide complete protection against at-fault and non-insured drivers in the state.

Does Uninsured/Underinsured Coverage Pay for Everything?

While these policies are designed to reimburse drivers for damage due to an accident, there are a few limitations. Some possible exclusions include:

Non-Medical Costs

These policies were created to cover property damage and medical expenses. With that, they may not pick up other costs. For example, you might need to rent a car or pay for transportation while your vehicle is being repaired. Depending on your policy, uninsured/underinsured coverage may not cover those costs.

Some Medical Treatments

Uninsured/underinsured coverage is designed to pay for medical bills related to the crash, but these policies may exclude some medical procedures. Acupuncture and chiropractic care may be deemed as “alternative” treatments and may not be reimbursed.

Hit-and-Run Accidents

Sometimes, underinsured policies may not cover damages from a hit-and-run accident. Since these incidents involve an unidentified driver, it could be difficult to collect damages. In these cases, the uninsured coverage could apply. However, coverage will depend on your specific policies and reimbursement limits.

Will Other Policies Cover Damage From Underinsured or Uninsured Drivers?

Some umbrella policies will help to fill in the gaps in coverage. Consider looking into this additional coverage if you have a policy with a lower coverage limit.

Along with that, Nevada does have medical payment coverage or MedPay. This coverage will pay for injuries from a vehicle accident. You will get coverage for yourself and your passengers. Plus, they will pay no matter who is determined to be at fault for the accident.

How To File a Claim

Like any insurance policy, you will want to contact the insurance company as soon as possible after an accident. Make sure to provide the claims adjuster with all the accident details. Once they investigate the incident, they will determine whether to deny or approve the claim.

With approval, you will receive reimbursement for your damages. However, some insurance companies may decide to deny the claim or not process the claim promptly. In these cases, you may need legal assistance.

These instances are known as bad faith claims. Your insurance company has an obligation to pay for a valid claim. If they deny you, then they must have a legally valid reason for that denial. In these cases, you may need to turn to a Nevada attorney to help you get the reimbursement you deserve.

Learn More About Your Legal Options

If you have been involved in an accident with an underinsured or uninsured driver, your coverage will determine whether you will be reimbursed for damages. Even with these policies, the insurance companies may try to deny your claim. The Law Office of Matthew L. Sharp can help in these situations. We are here to assist with this often complicated and frustrating process. Contact us today to schedule a consultation.