Nevada Law: Insurance Companies Cannot Raise Premiums When You Make a UM/UIM Claim

When you’ve been hit by another driver who doesn’t have insurance or who ran away from the scene, you might be concerned that filing a claim with your own insurance can drive up your rates. That’s a reasonable fear, because many customers have good reason to be concerned that their car insurance companies are always looking to drive up costs to the consumer. In Nevada, though, drivers have some protection; state law prohibits insurance companies from raising rates or cancelling policies because the policyholder filed an uninsured or under insured motorist claim.

UM and UIM claims in Nevada

Uninsured motorist coverage is meant to protect drivers from the harms done by other drivers who have no insurance or cannot be located. When someone hits your car and drives away, it’s still the responsibility of your insurer to make you whole for the damage. And if they try to raise your rates, they’re breaking the law in Nevada.

Underinsured motorist coverage, on the other hand, comes into play when another driver’s insurance is insufficient to pay for all of the damages caused. This can often be the case when a driver has only the minimum coverage mandated by state law for personal injury, medical care or property damage, while the injured victim needs to work with Las Vegas personal injury lawyers to seek compensation for his or her damages. The car insurance company should provide coverage up to the policy limits in these cases.

State Law on UM/UIM Claims

The Nevada Revised Statutes (NRS) 687B.385 states that an insurer “shall not cancel, refuse to renew or increase the premium for renewal…as a result of any claims made under the policy with respect to which the insured was not at fault.” UM and UIM claims both come into play when the policyholder did not cause the crash, so these are among the types of claims protected by this statute.

In addition, the Nevada Administrative Code (NAC) also addresses this issue. It states that car insurance companies cannot cancel, increase the premium or refuse to renew an insurance policy “because of an accident that is not a chargeable accident.” It specifically notes that insurers must only consider accidents “for which the insured is 50 percent or more at fault” as chargeable accidents.

Protective Law Upheld in Court

While insurance companies have attempted to fight these laws in court and defend their rights to charge people extra for being the victim of someone else’s criminal or dangerous behavior, the Nevada Supreme Court has upheld them. This can be particularly important for drivers, as a quarter of all drivers are uninsured in the state of Nevada despite mandatory insurance laws.

When you’ve been injured in a crash, you can’t rely on the car insurance companies to be on your side. You can work with an experienced personal injury law firm Las Vegas to defend your rights and seek the compensation you deserve. Contact the Schnitzer Law Firm today to set up your initial consultation. You can reach us by phone at 702-960-4050 or by email at