In New Jersey, all drivers must have a minimum amount of car insurance to cover the costs of injuries to others in an accident they cause. New Jersey law requires that drivers carry automobile liability insurance with minimum limits of $25,000 per person, $30,000 per accident, and $5,000 for property damage.
Nonetheless, as many as 1 in 8 drivers in New Jersey are uninsured. People who drive without insurance or who have insufficient insurance coverage put other motorists at risk, especially when someone who was injured in an automobile accident cannot pay for the cost of medical care and treatment they need.
Fortunately, New Jersey auto insurance companies offer Uninsured/Underinsured Motorist (UM/UIM) coverage to address this need. UM/UIM coverage is an optional insurance you can purchase that will compensate you if you are injured in a car accident with an uninsured or underinsured driver. But, filing a UM/UIM claim is not always straightforward. An experienced car accident injury attorney can ensure you receive full and fair compensation for your injuries.
Uninsured/Underinsured Motorist coverage works like a backup insurance policy that provides coverage if you are injured by an uninsured driver or a driver whose insurance coverage is insufficient to cover the full extent of your losses. Once it is determined the other driver did not have insurance or lacked adequate insurance coverage to pay the full extent of your losses, your UM/UIM insurance coverage steps in to make up the difference, up to the limits of your insurance policy.
Your UM/UIM coverage applies in two scenarios: when the other driver does not have insurance, and when the other driver does not have enough insurance to cover the full extent of your losses. In New Jersey, your UM/UIM coverage amount usually mirrors your liability coverage limits, unless you specify otherwise.
In the first scenario, where the other driver lacks insurance, your UM insurance will cover the full extent of your damages, up to the limits of your policy.
In the second scenario, where the other driver has insurance but the coverage is insufficient to fully compensate you for your damages, your UIM insurance will make up the difference. For example, suppose you are injured in a car accident caused by a driver with state minimum insurance coverage of $25,000. Assume you incurred medical bills of $35,000, which will be paid through your PIP insurance. Assume you also experienced pain and suffering, loss of enjoyment of life, and other non-economic damages in the amount of $65,000. In this case, the at-fault driver’s insurance carrier would pay $15,000, the limits of their insurance policy. Your UIM insurance would pay the difference of $50,000.
Also assume your vehicle was damaged and the repair cost was $20,000. The at-fault driver’s insurance company would pay $15,000, the limits of their policy, and your UIM coverage would pay the $5,000 balance. It can take time to determine whether the at-fault driver has sufficient insurance. This often will not be clear until you know the full extent of your damages and the at-fault driver's insurance policy amount.
You do not need a lawyer to file a UM/UIM claim. However, an experienced personal injury attorney can ensure your rights are protected and that you receive full and fair compensation for your injuries and other losses.
Uninsured/Underinsured Motorist policies can be complicated and difficult to understand. To support your claim, your personal injury lawyer will prepare a settlement demand package that illustrates all the ways your life has been affected by the accident and will negotiate to reach a favorable outcome. If the insurance companies refuse to offer a fair settlement, your lawyer can pursue your claim in court by filing a lawsuit to protect your rights and ensure you receive the compensation that you deserve.
John C. Iannelli is an experienced and sought-after New Jersey personal injury lawyer. With over 30 years of experience representing injured people, he knows how to navigate complex insurance policies and how to get results. To put his experience to work for you, contact Iannelli Law today to schedule an appointment to discuss your situation.
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