Getting into a car accident is stressful enough, but discovering the other driver is uninsured or underinsured can make the situation even more challenging. In New Jersey, where approximately 10.9% of drivers operate vehicles without insurance (according to the Insurance Research Council), knowing how to handle these situations is crucial.
Understanding Uninsured and Underinsured Motorist Coverage in NJ: What Is UM/UIM Coverage?
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage provides essential protection when involved in accidents with drivers who either lack insurance or have insufficient coverage. In New Jersey, drivers are required to carry UM/UIM, but not all policies include it. Standard auto insurance policies must automatically include UM/UIM, while basic policies are not required to include this coverage by default.
Minimum Coverage Requirements: Underinsured or Uninsured Motorist Coverage
New Jersey law mandates specific minimum coverage requirements for UM/UIM protection, which are equal to the minimums for liability insurance coverage. As of 2023, standard policies must include:
| Coverage Type | Minimum Limits |
| Bodily Injury | $25,000 per person / $50,000 per accident |
| Property Damage | $25,000 per accident. |
Coverage Limitations
Your UM/UIM coverage cannot exceed your liability coverage limits. For example, if you have $100,000 in liability coverage, your UM/UIM coverage cannot be higher than this amount.
Maximizing Your Protection: Recommended Coverage Levels
While minimum coverage levels are required by law, experts recommend carrying higher limits of UM/UIM coverage. For a more comprehensive protection, consider coverage of up to $250,000 per person and $500,000 per accident.
Additional Coverage Options
Consider supplementing your UM/UIM coverage with:
- Collision coverage for vehicle damage
- Adequate Personal Injury Protection (PIP) for medical expenses
- Umbrella policies for additional protection.
Immediate Steps After a Vehicle Accident
Safety First and Documentation
When involved in an accident with an uninsured or underinsured driver, taking immediate action is crucial. The first priority should be ensuring everyone’s safety and contacting emergency services if needed. Document the accident scene thoroughly by taking photographs of vehicle damage, injuries, and the surrounding area.
Police Report and Information Collection
Submit a formal police report and get in touch with law enforcement right away. This documentation becomes crucial for insurance claims and potential legal proceedings. Even if the other driver claims to be uninsured, get important information from them, such as their license plate number and contact information.
Filing an Insurance Claim
Contact your insurance company promptly to report the accident and ask to file a claim. Your insurer will need to evaluate whether the other driver was at fault and determine the extent of coverage available under your UM/UIM policy. It is best that you have the protection of a car accident attorney at this point.
Comparative Negligence
The comparative negligence law in New Jersey has an impact on accident compensation. Your compensation may be lowered proportionately if you are judged to be somewhat at fault. For instance, if you’re deemed 30% responsible for an accident with $10,000 in damages, you may only receive $7,000 in compensation.
Frequently Asked Questions: Underinsured or Uninsured Motorist Claim
What happens if I’m hit by an unidentified hit-and-run driver?
In New Jersey, UM coverage can protect you in hit-and-run situations. However, for property damage claims, the other driver must be identified. If they cannot be identified, you’ll need to rely on your collision coverage for vehicle damage.
How does underinsured motorist coverage work with multiple injured parties?
When multiple parties are injured in an accident with an underinsured driver, the coverage is typically divided among all injured parties up to the policy limits.
When insurance companies cannot agree on a settlement, the degree or percentage of fault for an automobile accident is often decided by a judge using facts submitted by parties involved. In such a case, an attorney may be able to shield you from taking on a larger amount of the culpability than you deserve. As a crash victim, this can maximize your financial compensation from the other parties.
What is the deadline for submitting a UM/UIM claim?
While there’s no specific deadline in New Jersey law for filing a UM/UIM claim, it’s advisable to file as soon as possible after the accident. Delays could affect your ability to recover compensation. Prompt filing helps preserve evidence and ensures compliance with your insurance policy’s notice requirements.
What types of damages are covered under UM/UIM coverage?
UM and UIM coverage typically compensates for:
- Medical bills (current and future expenses)
- Lost wages
- Pain and suffering
- Property damage
- Other accident-related costs.
Do insurance companies take legal action against uninsured drivers after car accidents?
Yes, in order to recoup the expenses of claims made under collision or uninsured/underinsured motorist coverage, insurance companies frequently demand payment from uninsured drivers. This process is referred to as “subrogation.”
The main objective of subrogation is to reclaim the funds paid to the insured, helping to reduce losses for the insurance company and potentially keeping premiums lower for policyholders. Additionally, this process ensures that the at-fault uninsured driver is held financially accountable for their actions, reinforcing the legal requirement for drivers to maintain proper auto insurance coverage.
Subrogation can also impact insured individuals in several ways.
One benefit is deductible reimbursement. If the insurance company successfully recovers money from the uninsured driver, the insured may be reimbursed for any deductible they paid as part of the claim.
Additionally, while the insurance company handles the subrogation process, the policyholder may still be required to provide information or documentation to support the effort.
Injured by an Uninsured or Underinsured Motorist in New Jersey? Contact Grossman Law Firm today.
The legal complexities of UM/UIM claims in New Jersey require experienced guidance to ensure you receive fair compensation. At Grossman Law Firm, our dedicated attorneys specialize in handling these challenging cases, bringing over 20 years of experience in navigating insurance claims and negotiations.
Don’t let the stress of dealing with insurance companies and complex legal procedures prevent you from getting the compensation you deserve. Our skilled legal team will thoroughly evaluate your case, explain your rights, and fight tirelessly to protect your interests. We understand the nuances of New Jersey’s insurance laws and have a proven track record of successful outcomes in UM/UIM cases.
Time is critical in these situations, and delaying action could impact your ability to recover damages. Contact Grossman Law Firm today at (732) 625-9494 for a free consultation. While you concentrate on getting better, let us take care of the complicated legal issues.
