Understanding Underinsured and Uninsured Motorist Coverage in New Jersey

Accidents happen. Unfortunately, not every driver on New Jersey roads has the proper insurance coverage. Some may lack insurance entirely, while others carry only minimal coverage that falls short of what is needed to cover damages. This is where Underinsured (UIM) and Uninsured Motorist (UM) coverage comes into play.

If you’ve been in an accident with an uninsured or underinsured driver, understanding your rights under New Jersey law can make all the difference in getting the compensation you deserve.

What is Uninsured Motorist (UM) Coverage?

Uninsured Motorist (UM) coverage is a provision in your auto insurance policy that protects you when you are involved in an accident caused by a driver who does not have liability insurance. New Jersey law requires drivers to carry a minimum amount of liability insurance, but not everyone complies. This means you could find yourself facing significant medical bills and repair costs with no one to hold financially responsible.

UM coverage steps in to cover:

• Medical expenses
• Lost wages
• Pain and suffering
• Vehicle repairs

It acts as a financial safety net, ensuring you don’t bear the full burden of someone else’s negligence.

Is Underinsured the Same as Uninsured?

While UM and UIM sound similar, they address different scenarios. Underinsured Motorist (UIM) coverage applies when the at-fault driver’s insurance is insufficient to cover all the damages resulting from the accident. For example, if the other driver has $25,000 in liability coverage, but your damages total $75,000, your UIM coverage can bridge the $50,000 gap.

Under New Jersey law, specifically N.J.S.A. 17:28-1.1(e), “A motor vehicle is underinsured when the sum of the limits of liability … available to a person against whom recovery is sought … is, at the time of the accident, less than the applicable limits for underinsured motorist coverage afforded under the motor vehicle insurance policy held by the person seeking that recovery.” This statute highlights the importance of understanding and securing sufficient coverage to protect yourself financially.

In New Jersey, the state’s minimum liability insurance requirements are $15,000 per person and $30,000 per accident for bodily injury, as well as $5,000 for property damage. These amounts often fall far short of what is needed in serious accidents.

Why is UM/UIM Coverage Essential in New Jersey?

New Jersey’s roads are bustling with drivers from all walks of life, including some who may not prioritize adequate insurance coverage. Here’s why UM/UIM coverage is crucial:

1. High Costs of Medical Treatment: Even minor accidents can result in significant medical expenses. UM/UIM ensures you’re not left footing the bill.
   
2. New Jersey’s No-Fault System: Under the state’s no-fault insurance laws, your own Personal Injury Protection (PIP) coverage pays for your medical expenses regardless of fault. However, PIP does not cover non-economic damages like pain and suffering, which UM/UIM can address.
   
3. Protect Against Uninsured Drivers: Despite legal requirements, many drivers in New Jersey still operate vehicles without insurance.
   
4. Covers Hit-and-Run Incidents: UM coverage can also protect you if you are the victim of a hit-and-run accident where the responsible driver cannot be identified.
   
5. Financial Security in Severe Accidents: UM/UIM coverage can provide the additional funds necessary to support long-term recovery and care in catastrophic accidents resulting in lifelong injuries.

Practical Steps to Take After an Accident with an Uninsured or Underinsured Driver

If you’re in an accident with an uninsured or underinsured driver in New Jersey, follow these steps to protect your rights and maximize your chances of fair compensation:

1. Call the Police: Always report the accident, even if the other driver suggests settling privately. A police report is a critical piece of evidence for your claim.
   
2. Gather Evidence:
   • Document the accident scene, vehicle damage, and any visible injuries.
   • Collect contact information from witnesses.
     
3. Seek Medical Attention: Some injuries may not be immediately apparent even if you feel fine. Medical records also serve as evidence in your claim.
   
4. Notify Your Insurance Company: Report the accident promptly. Your insurance provider will guide you through the process of filing a UM/UIM claim.
   
5. Document Your Losses:
   • Keep records of all medical bills, repair costs, and lost wages.
   • Maintain a journal detailing how the accident has impacted your daily life.
     
6. Consult an Attorney: Navigating the complexities of UM/UIM claims and dealing with insurance companies can be daunting. An experienced personal injury attorney can advocate for your best interests.

Notable New Jersey Cases Highlighting UM/UIM Claims

New Jersey courts have addressed several important cases involving UM/UIM coverage:

• Aubrey v. Harleysville Ins. Co.: In this case, the court emphasized the importance of clearly defining UM/UIM policy limits. The plaintiff’s UIM claim was upheld due to ambiguous language in the policy that worked in their favor.
  
• French v. New Jersey Manufacturers Insurance Co.: This case highlighted the need for insurers to act in good faith when evaluating UM/UIM claims. The court held that delays in processing claims could result in penalties for the insurer.

Benefits of Having UM/UIM Coverage

Investing in UM/UIM coverage is not just a legal requirement—it’s a practical safeguard. Here’s how it benefits you:

• Peace of Mind: Knowing you’re protected against the financial fallout of accidents with uninsured or underinsured drivers.
  
• Comprehensive Coverage: UM/UIM fills the gaps left by the at-fault driver’s insurance.
• Access to Justice: Enables you to seek compensation for non-economic damages like pain and suffering.
  
• Flexibility in Coverage Limits: You can tailor your policy to meet your specific needs and risks.
  
• Protection for Passengers: UM/UIM coverage can also extend to passengers in your vehicle, offering them the same financial protection.

How to Choose the Right UM/UIM Coverage

When purchasing auto insurance in New Jersey, it’s important to consider your specific needs and risks. Here are some tips:

1. Assess Your Risks: Consider how often you drive, the areas you frequent, and the likelihood of encountering uninsured drivers.
   
2. Review Your Budget: Higher coverage limits often come with higher premiums, but the added protection can be worth the cost.
   
3. Consult Your Insurance Agent: Ask questions to ensure you fully understand your policy and its limits.
   
4. Read the Fine Print: Look for exclusions or conditions impacting your ability to file a claim.
   
5. Consider Stacking Coverage: If you have multiple vehicles insured, you may be able to stack UM/UIM coverage to increase your protection.

Consult with an Attorney

Dealing with UM/UIM claims in New Jersey can be overwhelming, especially when insurance companies prioritize their bottom line over your recovery. The Rosengard Law Group specializes in personal injury cases involving UM/UIM coverage. Our team is here to provide compassionate, results-driven representation tailored to your unique situation.

Our dedicated NJ car accident attorneys are here to help you every step of the way. Even if you’re in a different area, like Cherry Hill, our experienced local Cherry Hill lawyers are ready to assist you. Call us at (856) 284-6446 for reliable legal support.