Underinsured motorist coverage (UIM) is something you need. Keep in mind that most motorists buy the minimum policy possible to meet their legal needs. In Nevada, that is a policy that covers $25,000 per person, $50,000 per incident for bodily injury liability caused by their negligence.
If a person buys this state minimum policy and causes an accident, the maximum payout is $50,000 to everyone in the car they hit. Many people buy the minimum policy because they are looking for the smallest monthly premium payment or they have little to no assets to protect.
Here’s the problem: even low impact collisions can cause more than $50,000 in bodily injury. If the victim of a car accident pursues someone with a state minimum policy, they might not recover the full value of their injuries. This can leave outstanding medical bills, or even lack of access to medical treatment.
One of the products you can buy to solve this problem is underinsured motorist coverage. In a collision, this policy steps and pays out on top of the liability coverage owned by the defendant. UIM also covers you if the person who hits you is completely uninsured. Most insurance agents in Nevada will encourage you to buy as much UIM coverage as you have primary liability coverage. This is the best advice. Because you might trust yourself behind the wheel. But do you trust everyone else on the road?