Stacked vs. Single-Limit UM/UIM Coverage in Nevada

By the FigureMyTax Editorial Team · How we calculate

Stacking adds the uninsured and underinsured motorist limits of several coverages together. In Nevada a policy may cap recovery at the highest single limit, but that clause is void if you bought separate coverage on the same risk and paid a premium calculated for full reimbursement under it.

What stacking means

A household may have more than one vehicle or policy with UM or UIM. Stacking adds those limits after one injury, so $50,000 and $50,000 become $100,000. Single-limit coverage pays only the one limit that applies.

What Nevada law says

NRS 687B.145(1) says a policy may provide that if you have coverage under more than one policy or provision of coverage, any recovery or benefits may equal but not exceed the higher of the applicable limits, and must be prorated between the coverages in proportion to their limits. The limiting provision must be in clear language and prominently displayed in the policy, binder or endorsement.

When the limiting clause is void

Any limiting provision is void if the named insured has purchased separate coverage on the same risk and has paid a premium calculated for full reimbursement under that coverage. So where you paid a separate premium for each coverage, the limits can be added.

A worked example

Suppose you have two coverages of $50,000 each, an at-fault driver paid $25,000, and your damages are $250,000. If a valid clause caps recovery at the higher single limit, UIM pays $50,000. If you paid a separate premium for each and the clause is void, it could pay $100,000. Try your own numbers in the Nevada UM/UIM stacking calculator.

What to check

Look at your declarations page for a separate premium for each coverage and read the clause. We did not read Nevada court decisions on how this test is applied, so ask an attorney. See what section 687B.145 says and how Nevada UM and UIM work.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Nevada's rules apply to your specific case with a licensed Nevada attorney.