What is Uninsured/Underinsured Motorist (UM/UIM) Coverage in New Jersey?

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Uninsured Motorist (UM) Coverage: This portion of your auto insurance policy steps in to cover your bodily injuries and, depending on your policy, property damage if you are hit by a driver who has no liability insurance at all, or by a hit-and-run driver who cannot be identified.

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Underinsured Motorist (UIM) Coverage: This coverage applies when the at-fault driver has liability insurance, but their policy limits are too low to fully compensate you for your injuries and damages. Your UIM coverage can help make up the difference, up to the limits of your own UIM policy.

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In New Jersey, UM/UIM coverage is mandatory. The minimum required limits are typically tied to your liability coverage choices, but you can (and often should) purchase higher limits for greater protection. It’s crucial to review your own insurance policy to understand the extent of your UM/UIM coverage.

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How Do UM/UIM Claims Work in New Jersey?

Filing a UM/UIM claim means you are essentially making a claim against your own insurance company. Here’s a general overview of the process:

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1. Report the Accident: Immediately report the accident to the police and your insurance company, regardless of who you believe is at fault or the other driver’s insurance status.

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2. Seek Medical Attention: Prioritize your health and get medical treatment for any injuries. Keep detailed records of all medical care and expenses.

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3. Identify the At-Fault Driver’s Insurance Status: Your attorney and your insurance company will work to determine if the other driver is uninsured or underinsured.

- For UM claims (uninsured or hit-and-run), you will proceed directly with a claim under your UM coverage once it’s established the other party is uninsured or cannot be found.

- For UIM claims, you must first pursue a claim against the at-fault driver’s insurance policy. If you recover the maximum amount available under their policy, and that amount is still less than your total damages (and less than your UIM coverage limit), you can then file a UIM claim with your own insurer for the difference.

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4. Notify Your Insurer of Intent to File UM/UIM Claim: Formally notify your insurance company that you intend to make a UM or UIM claim. There are specific procedures and deadlines that must be followed.

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5. Prove Your Damages: You will need to provide evidence of your injuries, medical bills, lost wages, pain and suffering, and any other losses, just as you would in a claim against an at-fault driver.

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6. Negotiation and Settlement: Your insurance company will investigate your claim. They may make a settlement offer, or they might dispute the value of your claim or even deny it. This is where having an experienced attorney is critical, as your own insurance company may not always act in your best interest when it comes to paying out on a UM/UIM claim.

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Challenges in NJ UM/UIM Claims

While UM/UIM coverage is designed to protect you, making these claims can sometimes be challenging:

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- Dealing with Your Own Insurer: It can feel adversarial when you have to negotiate with or even fight your own insurance company for fair compensation.

- Proving the Other Driver Was Uninsured/Underinsured: This can sometimes require diligent investigation.

- Meeting Policy Requirements and Deadlines: Insurance policies have strict requirements for notice and filing claims. Missing a deadline can jeopardize your right to recover.

- Valuing Your Claim: Disagreements often arise over the true value of your injuries and damages.

- Consent to Settle (for UIM): In UIM cases, you typically need your own insurer’s consent before settling with the at-fault driver’s insurance company to preserve your UIM rights.

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Why You Need an Experienced NJ Car Accident Attorney for UM/UIM Claims

An experienced New Jersey car accident attorney can be an invaluable asset when pursuing a UM/UIM claim. They can:

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- Help you understand your insurance policy and the full extent of your UM/UIM coverage.

- Ensure all necessary notices and deadlines are met.

- Investigate the accident and gather evidence to support your claim.

- Accurately value your damages, including future medical needs and long-term suffering.

- Negotiate aggressively with your insurance company on your behalf.

- Represent you in arbitration or litigation if your insurer refuses to offer a fair settlement.

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Don’t Face an Uninsured or Underinsured Motorist Accident Alone

Discovering that the driver who hit you is uninsured or underinsured adds another layer of stress to an already difficult situation. However, your UM/UIM coverage is there to provide a safety net.

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‍Hit by an uninsured or underinsured driver in NJ? You may still have options for compensation. Contact Sarofiem & Antoun for a free case evaluation to explore your UM/UIM coverage. Our dedicated team will help you navigate the complexities of your claim and fight for the full compensation you are entitled to under your policy. We are here to empower you and protect your rights.