When you are purchasing automobile insurance, you may be faced with a seemingly overwhelming number of options.
One of the most significant decisions to consider entails the applicable policy limits and types of coverage offered.
The state of Nevada requires drivers to obtain a certain amount of minimal coverage — a fact that any reputable insurance agent will know.
While minimal coverage is the least expensive, however, it may not be sufficient to cover medical expenses in the event of an accident involving significant injuries.
In fact, there is one type of coverage available that is all too often overlooked, not explained, or not thoroughly discussed in conversations with an insurance agent. It is called underinsured motorist coverage, or UIM.
Underinsured motorist coverage can be vital because it can potentially provide ample coverage for you when the opposing driver — who may have caused the accident — does not have adequate coverage to compensate you and your loved ones for losses incurred.
We have found that some drivers have UIM policy for $25,000 — which often turns out to be woefully insufficient if they suffer a major accident. A payout of that size might fall well short of meeting your financial burden if you are seriously injured.
Also, you should know that some insurance brokers shy away from an in-depth discussion of UIM coverage with their clients. That is because, in some cases, your own insurance company may have to pay out. On the bright side, many drivers find that full coverage is obtainable at a very reasonable price.
When you are planning and making your decisions regarding automobile insurance, be sure to ask questions regarding the various types of coverage offered and consider the appropriate insurance you believe will be beneficial to fully protect you and your family — including underinsured motorist coverage.