Nevada requires drivers to carry only $25,000 per person in bodily injury liability insurance (NRS 485.185). Here’s what $25,000 actually covers: roughly one night in a hospital after a serious crash, or a single surgery without follow-up care, or about four months of lost wages at Nevada’s median income. A spinal cord injury can generate $500,000 to $1 million in lifetime medical costs. A traumatic brain injury requiring rehabilitation can exceed $300,000 in the first year alone. A wrongful death claim involving a working-age parent can reach seven figures.
When the at-fault driver carries only the state minimum, $25,000 may represent less than 10% of what your claim is actually worth.
If you or a family member were seriously injured or lost a loved one in a crash and the at-fault driver’s insurance appears insufficient, the question is not whether $25,000 is all you can get. The question is where additional coverage exists and how to find it. In many cases, the answer involves sources the at-fault driver’s insurer will never voluntarily disclose.
The Coverage Stack: Where Additional Money May Exist
Think of insurance recovery as a stack of layers. The at-fault driver’s auto policy is only the first layer. Each layer above it requires knowing it exists and knowing how to access it. Here’s the stack in the order you typically pursue them:
Layer 1: The At-Fault Driver’s Auto Policy
This is the starting point. Nevada’s minimum is $25,000 per person / $50,000 per accident for bodily injury (NRS 485.3091). Many Nevada drivers carry only this minimum. Some carry higher limits ($100K/$300K or $250K/$500K), but you won’t know until the insurer discloses the policy limits.
Key point: the insurer is required to disclose policy limits to your attorney upon request, but they are not required to disclose them quickly or to volunteer information about other coverage the at-fault driver may carry (such as an umbrella policy).
Layer 2: The At-Fault Driver’s Umbrella Policy
This is the layer most people don’t know to look for. A personal umbrella policy sits on top of the at-fault driver’s auto, homeowner’s, and other liability policies. Umbrella policies typically provide $1 million to $5 million in additional liability coverage.
Here is the problem: the at-fault driver’s auto insurer has no obligation to tell you their insured also carries an umbrella policy, especially if the umbrella is with a different carrier. The at-fault driver may not even mention it because they may not fully understand what their umbrella covers.
How to find umbrella policies:
- Formal discovery. Once a lawsuit is filed, your attorney can send interrogatories (written questions under oath) and document requests specifically asking whether the at-fault driver carries any umbrella or excess liability coverage, with which carrier, and for what limits.
- Deposition testimony. The at-fault driver can be asked under oath about all insurance policies they hold.
- Insurance declarations page. A court can compel production of the at-fault driver’s full insurance portfolio, not just the auto policy.
This discovery process is one of the primary reasons serious injury cases benefit from attorney involvement. An insurer offering “$25,000, which is everything we have” may be telling the truth about the auto policy while omitting that their insured has a $2 million umbrella with another carrier.
Layer 3: Employer or Commercial Coverage
If the at-fault driver was working at the time of the crash, their employer’s commercial insurance policy may apply. Commercial auto policies typically carry limits of $1 million or more, far exceeding personal auto minimums.
This layer applies when the at-fault driver was:
- Making deliveries (Amazon, FedEx, food delivery, courier services)
- Driving for a rideshare company (Uber, Lyft) during an active trip
- Driving a company vehicle
- Traveling between work sites
- Running an errand for their employer during work hours
Employer liability operates through a legal doctrine called respondeat superior (employer responsibility for employees acting within the scope of employment). The employer’s insurance responds because the employer is independently liable for their employee’s negligence while on the job. For more on how multiple parties share liability, understanding this framework is critical in insufficient-coverage cases.
Layer 4: Your Own Underinsured Motorist (UIM) Coverage
If the at-fault driver’s total available insurance (auto + umbrella + employer) is less than your damages, your own underinsured motorist coverage bridges the gap.
Nevada law requires every auto insurance policy to include uninsured/underinsured motorist (UM/UIM) coverage unless the policyholder has explicitly rejected it in writing (NRS 690B.020). If you never signed a written rejection form, you likely have UM/UIM coverage.
UIM coverage pays the difference between the at-fault driver’s available insurance and your UIM policy limits. If the at-fault driver has $25,000 and your UIM limits are $100,000, UIM may provide up to an additional $75,000.
Important: check your declarations page for your UIM limits. If you have multiple vehicles on your policy, your policy may allow “stacking” of UIM limits, potentially multiplying the available coverage. Policy language varies, so review this with your attorney or insurer.
Layer 5: MedPay and Health Insurance
MedPay (Medical Payments coverage) is a no-fault coverage on your own auto policy that pays for your medical expenses regardless of who caused the crash. It typically ranges from $1,000 to $10,000 but provides immediate payment without waiting for the liability claim to resolve.
Your personal health insurance also covers accident-related medical expenses, though your health insurer may assert a subrogation right (a right to be reimbursed from any settlement you receive). Understanding who pays medical bills during your case and how these coverages coordinate with your liability recovery is important for managing bills while pursuing the larger claim.
Layer 6: Personal Assets of the At-Fault Driver
If all insurance sources are exhausted and your damages still exceed available coverage, you can pursue the at-fault driver’s personal assets through a judgment. However, this path has practical limitations. A driver carrying only $25,000 in insurance often has limited personal assets. Nevada has homestead and other exemptions that protect certain assets from creditors.
That said, some at-fault drivers carry minimum insurance despite having significant assets (real estate, business interests, retirement accounts). Discovery of assets is part of the investigation process.
What Compensation These Layers Can Cover
Every layer in the coverage stack exists to pay for the same categories of damages. The question is which layer responds and for how much. Potential categories of compensation in a serious injury or wrongful death case may include:
- Medical expenses: Emergency treatment, hospitalization, surgery, rehabilitation, physical therapy, and ongoing care. In serious crash cases, medical costs alone can reach six figures within the first year.
- Future medical costs: Long-term care needs, future surgeries, prosthetics, home modification, and ongoing therapy for permanent injuries.
- Lost wages and earning capacity: Income lost during recovery, and reduced ability to earn if injuries are permanent or limit your ability to return to your prior occupation.
- Pain and suffering: Physical pain, emotional distress, anxiety, depression, loss of enjoyment of life, and the impact of the injury on your daily activities and relationships.
- Wrongful death damages: If a family member was killed, surviving family members may recover funeral and burial costs, loss of financial support, loss of companionship, and other damages under Nevada’s wrongful death statute (NRS 41.085).
When damages in these categories total $200,000, $500,000, or more, the gap between $25,000 in available coverage and the actual value of the claim is the problem this entire article exists to solve.
The Policy Limits Offer: Why You Should Not Accept It Without Investigation
When the at-fault driver’s insurer contacts you early and offers their “full policy limits” of $25,000, it may sound like the best possible outcome. They may frame it as: “This is everything our insured has. Take it now or risk getting nothing.”
This framing creates urgency designed to prevent investigation. Before accepting any policy limits offer:
- Has anyone searched for an umbrella policy? The auto insurer won’t tell you.
- Was the at-fault driver working at the time? Employer coverage may dwarf the auto policy.
- What are your own UIM limits? Accepting the at-fault driver’s limits does not automatically waive your UIM claim, but the release language matters enormously.
The Release Trap
This is the single most dangerous mistake you can make in an insufficient-coverage case.
When you accept a settlement, you sign a release. If that release is drafted broadly — and insurance companies draft them as broadly as possible — it could potentially affect your ability to pursue other claims or coverage sources. A standard release that says you release “all claims arising from the accident” against “all parties” could be interpreted to close the door on your UIM claim, your claim against the employer, or your claim against any other party you haven’t yet identified.
An attorney reviews release language before signing to ensure accepting one layer of coverage does not close the door on others. In many cases, a properly drafted release can accept the at-fault driver’s policy limits while expressly preserving your right to pursue UIM coverage and other sources. But this requires knowing the issue exists before you sign. Once you sign a broad release, undoing it is extremely difficult.
This is especially critical in settlement negotiations where the stakes are high.
What If You Already Accepted a Settlement?
If you already accepted the at-fault driver’s policy limits and signed a release before discovering additional coverage existed, your options may be limited but are not necessarily zero. The enforceability of the release depends on its specific language, whether it was signed under duress or without adequate information, and whether the additional coverage (such as an umbrella policy) involves a different party not covered by the release. An attorney can review the release you signed and assess whether any additional claims survive.
When Coverage Truly Is Limited
Honesty matters here. In some cases, additional coverage does not exist:
- The at-fault driver has no umbrella policy
- They were not working at the time of the crash
- You rejected UM/UIM coverage in writing when you purchased your policy
- The at-fault driver has no meaningful personal assets
When this is the reality, recovery may be limited to the available policy limits plus whatever MedPay and health insurance can cover. This is financially devastating in serious injury and wrongful death cases, where $25,000 is a fraction of the actual loss.
If you find yourself in this situation, the most important takeaway is to carry adequate UM/UIM coverage on your own policy going forward. UM/UIM is the only coverage you fully control, and in Nevada’s minimum-coverage environment, it is often the difference between meaningful recovery and devastating shortfall.
Frequently Asked Questions
The at-fault driver only has $25,000 in insurance. Is that really all I can get? Not necessarily. Additional coverage may exist through an umbrella policy, employer insurance (if the driver was working), or your own UIM coverage. The at-fault driver’s auto insurer has no obligation to disclose other coverage sources. Formal discovery through an attorney is often required to find them.
How do I find out if the at-fault driver has an umbrella policy? Your attorney can send formal discovery requests (interrogatories and document requests) once a lawsuit is filed. The at-fault driver must disclose all insurance policies under oath. Pre-suit, the auto insurer may disclose policy limits but will not volunteer information about umbrella coverage.
Should I accept the insurance company’s policy limits offer? Not without investigation. The offer may represent only the auto policy layer while umbrella, employer, and UIM coverage remain unexplored. Have an attorney review the release language before signing anything, as a broadly drafted release could affect your ability to pursue other coverage sources.
What if the at-fault driver was using their car for work? The employer’s commercial insurance policy may apply, and commercial policies typically carry much higher limits than personal auto policies. This is common with delivery drivers, rideshare drivers, sales representatives, and employees traveling between work sites.
I don’t think I have UIM coverage. How do I check? Review your auto insurance declarations page. It lists all coverages and limits on your policy. Under Nevada law (NRS 690B.020), UM/UIM coverage is required on every policy unless you signed a written rejection. If you never signed a rejection form, you likely have coverage even if you don’t remember purchasing it.
Can I stack my UIM coverage if I have multiple cars? Potentially. Whether UIM limits can be “stacked” (multiplied by the number of vehicles on the policy) depends on your specific policy language. Review this with your attorney or insurer. Stacking can significantly increase available coverage.
I already signed a release and took the $25,000. Can I still pursue other coverage? It depends entirely on the language of the release you signed. A narrowly drafted release that only releases the at-fault driver may preserve your UIM claim and claims against other parties. A broadly drafted release may not. Have an attorney review the document immediately. The sooner you act, the more options may remain.
Is there a time limit for filing a UIM claim with my own insurer? Yes. While Nevada’s general statute of limitations for personal injury is two years (NRS 11.190), your own insurance policy may impose shorter notice requirements for UM/UIM claims. Review your policy for any notice or filing deadlines, and report the claim to your insurer as soon as you know the at-fault driver’s coverage may be insufficient.
Don’t Let the First Offer Define Your Recovery
The gap between $25,000 in minimum coverage and the actual value of a serious injury or wrongful death claim can be hundreds of thousands of dollars. Closing that gap requires knowing where to look: umbrella policies, employer coverage, UIM benefits, and personal assets. The at-fault driver’s insurer will not map these sources for you.
With 40+ years as a personal injury attorney, Jack Bernstein understands how to investigate coverage layers beyond the obvious auto policy, including formal discovery of umbrella policies, employer liability analysis, and UIM coordination. When medical expenses exceed insurance limits, Jack can identify every available source of recovery. Contact Jack Bernstein Injury Lawyers for a free consultation: (702) 633-3333.
