When your injury damages exceed the insurance policy limits in Nevada, the at-fault party’s policy is rarely the only money available. Other liable parties, commercial and umbrella policies, your own underinsured motorist coverage, and in some cases the insurer’s own conduct can open up more recovery.
This matters most after a catastrophic injury, where a lifetime of care and lost income can reach well into seven figures. An insurer offering to “tender the policy limits” may sound like a final answer. Often it’s only the first coverage a careful attorney finds.
Why Catastrophic Damages Blow Past Nevada’s Minimum Policy
Nevada only requires drivers to carry $25,000 in bodily injury coverage per person and $50,000 per crash under NRS 485.185. You can read more about Nevada’s minimum car insurance requirements here.
$25,000 might cover an emergency room visit and a few weeks of therapy. It won’t come close to a spinal cord injury, a traumatic brain injury, or an amputation. Once you add future surgeries, in-home care, equipment, and a lifetime of lost earning capacity, the gap between the policy and the real damages can be enormous.
That’s why our Las Vegas catastrophic injury lawyers look for every source of coverage before valuing a claim, not after.
Where the Extra Coverage Can Come From
Every At-Fault Party, Not Just the Obvious One
Many serious injuries involve more than one responsible party. A crash might involve the driver, their employer, a vehicle or parts manufacturer, or a contractor who left a hazard on the road. Each party can carry separate insurance.
Identifying every party also matters because of how Nevada assigns fault. Under NRS 41.141, when an injured person is found partly at fault, each defendant generally pays only its own percentage share. Exceptions exist, including for product defect claims and intentional acts, and for injured people who were not at fault at all. How those rules apply depends on the facts, which is one reason an attorney should review every possible defendant.
Employer, Commercial, and Umbrella Policies
If the at-fault driver was working (making deliveries, driving a company truck, or shuttling tourists between the Strip and Harry Reid International Airport), the employer’s commercial policy may apply. Commercial policies usually carry far higher limits than personal ones.
Rideshare companies in Nevada are required by a 2025 state law to carry at least $1 million in bodily injury coverage for their drivers. Many individuals and businesses also carry umbrella policies, which sit on top of a primary policy and add extra coverage, often $1 million or more.
Another 2025 change helps here too. Under AB 512, for auto and general liability policies, the insurer’s defense costs generally can’t be subtracted from the limits available to pay your claim.
Your Own Underinsured Motorist (UIM) Coverage
If you carry underinsured motorist coverage on your own policy, it may pay when the at-fault driver’s insurance runs out. Many policies require you to notify your own insurer before accepting the other driver’s policy limits, so the order of steps matters.
For a deeper look at how this coverage works, see UM/UIM when the other driver’s coverage isn’t enough and how UM/UIM pays after a hit-and-run.
Premises, Product, and Other Liability Policies
Not every catastrophic injury happens on the road. A fall at a resort, a negligent-security attack in a parking garage, or a defective product injury can involve commercial liability policies with limits far above any auto policy.
The Policy-Limits Demand and Why Timing Matters
When damages clearly exceed coverage, an attorney often sends the insurer a policy-limits demand. This is a formal, documented offer to settle for the full policy amount within a set time.
Insurers in Nevada owe their policyholders a duty to handle claims in good faith. In some situations, an insurer that unreasonably refuses a fair opportunity to settle within its limits can end up exposed to a judgment above those limits. These rules are complex and fact-specific, so a demand has to be supported, clear, and carefully timed.
Before you accept any limits offer, make sure you know whether other coverage exists. Accepting one payment and signing a broad release can cut off claims you didn’t know you had. That’s one reason it pays to talk to a lawyer before accepting the first settlement offer.
Can You Go After the At-Fault Person’s Own Assets?
Legally, yes. A judgment can exceed the person’s insurance, and you can try to collect the rest from them directly.
In practice, it’s often harder than it sounds. Nevada law protects significant amounts of home equity, wages, and personal property from collection, and many people simply don’t have assets to pay a large judgment. An experienced attorney investigates the at-fault party’s real financial picture before deciding whether a lawsuit beyond the limits makes sense.
Why “Take the Policy Limits” Isn’t Always the End
Glen Howard spent years as an insurance defense attorney. He knows insurers sometimes tender limits quickly in serious cases to close the file before the injured person realizes what else is out there.
A fast limits offer can be good news, but it should trigger more investigation, not end it. Every case is different, and the right path depends on the facts, the coverage, and the people involved.
Frequently Asked Questions
Can I sue for more than the insurance policy limit?
Yes. Insurance limits cap what the insurance company pays, not what you’re legally allowed to recover. You can file a lawsuit and win a verdict larger than the at-fault party’s policy. The real question is whether there’s a way to collect the excess. That could be other liable parties, additional policies, your own UIM coverage, or the at-fault person’s personal assets. A Nevada attorney can evaluate whether pursuing a judgment above the limits is realistic in your situation before you sign anything.
What happens if the at-fault driver only has minimum coverage?
If the at-fault driver carries only Nevada’s minimum of $25,000 per person, that amount is often exhausted quickly in a serious injury case. Your attorney will then look for other sources: the driver’s employer, other at-fault parties, umbrella coverage, and your own underinsured motorist coverage. Many catastrophic injury recoveries come from a combination of policies rather than one. Don’t assume the minimum policy is the ceiling on your claim until every source has been checked.
Does my own insurance pay if theirs isn’t enough?
It may, if you carry underinsured motorist (UIM) coverage. UIM can cover your damages above what the at-fault driver’s insurance pays, up to your own UIM limits. Policies have specific notice and consent requirements, and missing a step can create problems with your claim. That’s why it’s smart to have an attorney involved before you accept a payment from the at-fault driver’s insurer. MedPay coverage on your own policy may also help with medical bills, regardless of fault.
Can an insurance company be liable for more than its policy limits?
In some situations, yes. Under Nevada law, an insurer that unreasonably fails to accept a reasonable settlement offer within its policy limits may be exposed to a judgment above those limits. These claims are complicated and depend heavily on what was offered, when, and how the insurer responded. That’s why a properly documented, well-timed policy-limits demand matters so much in a serious injury case. An attorney experienced with insurance law can tell you whether this is a realistic avenue.
The Policy Limit Isn’t Always the Limit on Your Recovery
If your injuries will affect you for the rest of your life, you deserve to know every source of coverage before you sign a release, because once you sign, there’s usually no going back. Nevada’s two-year filing deadline for most injury claims also means the search for coverage should start early.
Howard Injury Law offers a free, confidential case review, and we work on contingency: no fee unless we win. Glen Howard knows how the other side thinks, because he used to be on it. Schedule your free consultation, and we’ll tell you what coverage may be on the table in your case. You can also review our case results.
