Nevada Uninsured and Underinsured Motorist Coverage

Why UM/UIM Statutes Matter in Nevada

Roughly one in eight Nevada drivers historically carries inadequate or no liability insurance despite 25/50/20 mandates. When your insured is injured by that driver, uninsured motorist (UM) and underinsured motorist (UIM) coverages become the paycheck. The Pearson VUE outline pairs NRS 687B.145 with NRS 690B.020 because they work together—one governs policy offers and limit parity, the other mandatory uninsured vehicle coverage inside the liability contract.

National ISO UM/UIM endorsements explain how coverage pays. Nevada statutes explain what must be sold, what can be rejected, and what counts as an "uninsured motor vehicle."

NRS 690B.020 — Mandatory Uninsured Vehicle Coverage

NRS 690B.020(1) prohibits delivering any Nevada motor vehicle liability policy unless it includes (or supplements) uninsured vehicle coverage protecting insureds legally entitled to recover from owners or operators of uninsured or hit-and-run vehicles for bodily injury, sickness, disease, or death.

Exceptions to the Mandate

Minimum UM Limits (690B.020(2))

UM limits must be not less than Nevada's minimum bodily injury liability limits in Chapter 485—currently $25,000 per person / $50,000 per accident. Insurers may sell higher UM limits.

Definition of "Uninsured Motor Vehicle" (690B.020(3))

Nevada's definition is broader than "no policy at all." An uninsured motor vehicle includes:

• (a) No DMV evidence of financial responsibility on file;
• (b) No BI liability insurance, or limits below 485 requirements;
• (c) Insurer denies coverage or is insolvent;
• (d) Vehicle used without owner's permission when no operator coverage exists;
• (e) Permissive use where owner's policy excludes non-owner operators and operator lacks coverage;
• (f) Hit-and-run unknown owner/operator when:
  1. Injury/death results from physical contact between the hit-and-run vehicle and the insured or insured's occupied vehicle; and
  2. Crash is reported within 484E.030, .040, or .050 timeframes to city police, county sheriff, or Nevada Highway Patrol.

Exam trap: Phantom hit-and-run claims without physical contact fail subsection (f). A pedestrian struck by a fleeing car qualifies; a swerve causing a rollover without contact generally does not.

Insolvency Extension (690B.020(4))

UM also treats an insolvent other insurer as uninsured when the insolvency existed at or within two years after the crash, the occurrence happened while UM was in force, and the other carrier cannot pay within its policy limits.

Subrogation (690B.020(5))

When UM pays, the insurer may pursue subrogation against the responsible tortfeasor or insolvent carrier assets—subject to policy terms.

60-Day Presumption (690B.020(6))

If no financial responsibility evidence is supplied to DMV within 60 days after a bodily-injury crash, the at-fault vehicle is presumed uninsured.

NRS 687B.145 — Offer, Limits, and UIM Mechanics

While 690B.020 embeds UM in the policy, 687B.145 sets consumer-protection rules for both UM and UIM on passenger cars and motorcycles.

Mandatory Offer (687B.145(2))

Insurers transacting motor vehicle insurance must offer, on a Commissioner-approved form, uninsured and underinsured vehicle coverage in amounts equal to the bodily injury liability limits sold on the policy. Key nuances:

• Insurers need not re-offer on every replacement or endorsement, but the insured may request in writing anytime.
• Each renewal must include a copy of the offer form.
• UIM must pay up to the insured's own limits when damages exceed the at-fault driver's BI limits (including when NRS 41.035 damage caps apply).

Medical Payments Offer (687B.145(3))

Separately, insurers must offer at least $1,000 medical expense coverage on an approved form (optional purchase). Renewals must include the offer; rejection rules mirror UM.

No Subrogation Against Underinsured Tortfeasor (687B.145(4))

When an insurer pays UIM, it cannot subrogate against the underinsured at-fault driver for those damages—preventing double recovery harassment of impecunious defendants.

Commercial Umbrella Exclusion (687B.145(5))

Insurers need not offer UM/UIM on general commercial liability, excess, umbrella, or non-primary auto policies that do not insure a specifically listed vehicle's ownership/operation.

Proration When Multiple Policies Apply (687B.145(1))

If an insured has overlapping UM/UIM, recovery may equal but not exceed the highest applicable limit, prorated among policies. Limiting language must be clear and prominent; it is void if the insured bought separate full-limit coverage and paid premium for full reimbursement.

Worked Scenario: Reno I-580 Chain Reaction

Insured carries 100/300 BI with matching 100/300 UM/UIM. At-fault driver has 25/50 state minimum. Insured's damages are $120,000.

1. Collect $25,000 from at-fault insurer (per-person limit).
2. UIM pays up to insured's $100,000 limit for remaining $95,000 qualifying damages (subject to policy terms and 41.035 caps).
3. Insured's carrier cannot subrogate against the at-fault driver for the UIM portion under 687B.145(4).

If the at-fault driver fled without contact and no other vehicle was struck, 690B.020(3)(f) likely denies UM—no physical contact.

Comparison Table for Exam Day

Producer Workflow

1. Quote default: Present BI/PD, then matching UM/UIM per 687B.145(2).
2. Document rejection: Retain signed waiver; remind insured renewal includes offer again.
3. Hit-and-run claims: Coach clients to report immediately to proper agency under 484E.
4. Underinsured math: Show clients how minimum 25/50 leaves gaps even when UM/UIM is purchased at higher limits.
5. Fleet/umbrella: Confirm whether 687B.145(5) exempts ancillary policies before assuming UM exists.

Common Exam Traps

1. Confusing 690B.020 (mandatory UM) with 687B.145 (offer/limit rules)—both are correct answers in different fact patterns.
2. Assuming any hit-and-run triggers UM without physical contact.
3. Believing UM rejection is permanent—insured may request in writing later.
4. Forgetting renewal must include the 687B.145 offer form even if previously rejected.
5. Applying UM offer rules to umbrella/excess policies exempt under subsection 5.

Master 690B.020 = UM inside the policy and 687B.145 = equal-limit offer with UIM gap coverage. Those statutes protect Nevada drivers when tort recovery from at-fault parties fails—and they are core casualty-only exam content.