The way the law works in Nevada (and majority of the States in the US) is a driver's policy limits can limit the exposure of liability in car accident cases to the Insurance Company. Usually what this means, is if the person who hit you does not have money, than the only source to recover from is the Insurance Company. If the Insurance Company has a low policy limit (in Nevada the law requires a minimum policy of $15,000.00/$30,000.00) then that could be problematic when it comes time to recover for your damages.
What Is Under Insured Motorist Coverage?
When you sign up for your own auto insurance, you usually get the option to get Under Insured Motorist Coverage. This simply means that if you do get hit by somebody who does not have enough insurance to cover your damages, your own Insurance Company will step into their shoes to cover the remaining damages under your Under Insured Motorist Policy.
The Insurance Company Bad Faith Claim
Where "Bad Faith" comes in is when your own Insurance Company fails to pay you on your Under Insured Claim. Insurance companies are always allowed to reasonably investigate, but in the case of your own Insurance Company, you have a special relationship that is created at the time you become their Insured.
If you have any questions on this matter, feel free to contact Ace Law Group at 702-333-4223 and speak with one of our Attorneys today.