If you are seriously injured in a car accident in New Jersey, one of the most important coverages on your auto policy may be your Uninsured/Underinsured Motorist coverage — commonly called UM/UIM coverage. Many drivers focus only on the minimum insurance required by law, but minimum coverage often does not come close to protecting someone after a major injury. In many cases, the at-fault driver simply does not carry enough insurance to fully compensate an injured victim.
UM coverage protects you when the driver who caused the accident has no insurance at all or leaves the scene in a hit-and-run. UIM coverage applies when the at-fault driver has insurance, but their policy limits are too low to fully cover your damages. Your own insurance policy can then step in to help make up the difference, up to the limits you selected.
A major mistake many New Jersey drivers make is selecting the lowest possible UM/UIM limits in order to save money on premiums. Unfortunately, catastrophic injuries can easily exceed a basic policy. Medical bills, lost wages, pain and suffering, future treatment, and permanent injuries can quickly become far more expensive than the minimum coverage available. A driver carrying only minimal limits could be left with little financial protection after a serious crash.
In New Jersey, your UM/UIM limits generally cannot exceed your bodily injury liability limits. That means if you only carry low liability coverage for others, you are also limiting the protection available to yourself and your family.
For that reason, many attorneys and insurance professionals recommend selecting significantly higher liability and UM/UIM limits than the state minimums. While every situation is different, drivers who want stronger protection often consider coverage such as:
- $100,000/$300,000
- $250,000/$500,000
- Or even higher limits with an umbrella policy
Higher UM/UIM limits can be especially important if you:
- Drive frequently
- Have a family riding in your vehicle
- Own a home or assets to protect
- Have a higher income that could be impacted by a disabling injury
- Want protection against uninsured or minimally insured drivers
Another important consideration in New Jersey is the difference between a “Basic Policy” and a “Standard Policy.” A Basic Policy provides very limited protection and may not include meaningful UM/UIM benefits. A Standard Policy allows drivers to purchase substantially better protection and higher coverage limits.
Drivers should also strongly consider:
- Adequate Personal Injury Protection (PIP)
- Collision coverage
- Comprehensive coverage
- An Unlimited Right to Sue option if financially feasible
These coverages can become critical after a significant accident involving permanent injury.
At the end of the day, UM/UIM coverage is protection for you and your family — not the other driver. Many people do not realize how valuable this coverage is until after a serious accident occurs. Choosing stronger UM/UIM limits before an accident can make a tremendous difference in the financial recovery available after a life-changing injury.
