Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) pays for your medical bills, lost wages, and vehicle damage when you're hit by a driver with no insurance. Underinsured motorist coverage (UIM) kicks in when the at-fault driver has insurance, but their liability limits are too low to cover your full claim. Both coverages are filed through your own carrier, not the other driver's—you're using your policy to fill the gap their policy leaves. Nevada law allows you to reject UM/UIM in writing, but most carriers offer it as a default add-on unless you explicitly decline.
- You're rear-ended at a red light by a driver with no insurance. You have $8,000 in medical bills and $4,500 in vehicle damage. The at-fault driver has no coverage to pay your claim. Your UM/UIM coverage pays the $8,000 in medical costs up to your policy limit, and if you carry UMPD, it covers the $4,500 in vehicle damage minus your deductible.
- You're injured in a crash caused by a driver carrying Nevada's minimum $25,000 bodily injury liability. Your medical bills total $45,000. The at-fault driver's liability policy pays its $25,000 limit, leaving a $20,000 gap. Your UIM coverage pays the remaining $20,000 if your UIM limit is at least that high, minus any deductible.
- Your parked car is sideswiped overnight and the driver flees. You have $3,200 in repair costs. Standard UM/UIM won't cover this because the driver is unidentified. If you carry uninsured motorist property damage (UMPD) as a separate endorsement, it pays the $3,200 minus your deductible—but only if your policy includes that specific rider.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry UM/UIM if you drive frequently in areas with high uninsured driver rates, if you can't afford to cover a major medical bill or vehicle repair out-of-pocket, or if you're carrying liability-only coverage and want protection for your own injuries without paying for full collision and comprehensive. It's especially critical if you're financing a vehicle—your lender requires collision and comprehensive, but UM/UIM is the only coverage that pays your medical costs when the other driver has no insurance.
Compare your UM/UIM annual premium to your health insurance deductible and out-of-pocket maximum. If your health plan would leave you with a $5,000+ gap after a serious crash, and UM/UIM costs under $200/year, the coverage pays for itself in one claim. If your health coverage is strong and you carry collision, UM/UIM becomes optional—but remember that health insurance doesn't cover lost wages or pain-and-suffering claims the way UM/UIM does.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
UM/UIM coverage typically adds $8–$18 per month to your Nevada premium, or roughly $95–$215 annually, depending on your coverage limits and driving history.
- Your UM/UIM policy limits—higher limits mean higher premiums, and most carriers offer UM/UIM limits that mirror your liability limits.
- Your ZIP code and county—areas with higher uninsured driver rates or more frequent hit-and-run claims see steeper UM/UIM premiums.
- Your claims history—prior UM/UIM claims can raise your rate even though you weren't at fault, because the claim still costs your carrier money.
- Whether you stack coverage—if you insure multiple vehicles, stacked UM/UIM combines the limits across all policies, increasing your total coverage but also raising your premium by 30–50%.
- Your carrier's loss ratio in Nevada—insurers with higher uninsured-driver claim payouts in the state price UM/UIM more aggressively to offset risk.