Uninsured vs. Underinsured Coverage: What’s the Difference?

If you’re like most people, you probably don’t think about insurance until you need it. And if you do need it, chances are you have a lot of questions. One of the most common types of insurance is uninsured or underinsured coverage. But what’s the difference? In this blog post, we will explore the differences between uninsured and underinsured coverage and help you understand what these coverages do for you.

Uninsured – Nevada law requires that all drivers have insurance. If you are caught driving without insurance, you could face serious penalties, including fines, the suspension of your driver’s license, and even jail time. Uninsured coverage protects you if you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.

In 2019, 12.6 percent of motorists, or about one in eight drivers, were uninsured, according to a 2021 study by the Insurance Research Council (IRC). 

In Nevada approximately 10.4% of Drivers are Uninsured

Underinsured – Nevada law also requires that all drivers carry a certain amount of liability coverage that provides coverage for others. This coverage pays for damages if you are in an accident with a driver who does not have enough insurance to cover the costs of the accident. Underinsured coverage can help pay for medical bills, property damage, and other expenses incurred as a result of an accident.

Both uninsured and underinsured coverage are important protection for Nevada drivers. If you have any questions about your coverage, be sure to speak with your insurance agent. And remember, always drive safely!