Car accidents can be stressful, but things can get even more frustrating when the driver who caused the crash doesn’t have insurance or enough insurance to cover your losses. That’s where uninsured motorist (UM) and underinsured motorist (UIM) coverage comes in. If you’re injured in a crash and the at-fault driver can’t pay, your own insurance policy may help you recover damages.
In New Jersey, UM and UIM coverage is required by law, but the amount you carry depends on your choices when setting up your policy. Many drivers don’t realize their default limits are often too low to fully protect them. Understanding how this coverage works can help you make smart decisions and avoid being stuck with unpaid medical bills, lost wages, and other out-of-pocket costs.
What Is Uninsured and Underinsured Motorist Coverage?
Uninsured motorist coverage helps when the driver who hit you has no insurance. Underinsured motorist coverage helps when the other driver has some insurance, but not enough to cover the full amount of your losses.
Let’s say your total damages after a crash are $100,000. If the at-fault driver only has the minimum required $25,000 in liability coverage, you could collect that amount from their insurance. Then, you could turn to your UIM coverage for the remaining $75,000—if your limits are high enough.
In New Jersey, the amount of UM/UIM coverage you can carry usually matches your liability coverage. If you have $250,000 in liability protection, you can have up to $250,000 in UM/UIM coverage. That’s why many people choose to increase their limits, especially if they want peace of mind after a crash.
What Can UM/UIM Coverage Pay For?
UM and UIM policies can cover many types of damages, including:
- Medical bills
- Lost income from time missed at work
- Pain and suffering
- Emotional distress
- Funeral costs or wrongful death losses if someone dies in the crash
Your insurance company will step in to cover the difference between what the at-fault driver’s insurance pays and what your losses total, up to your own policy limit. However, after paying, your insurance company might try to recover the money from the other driver later. This is called subrogation, but it doesn’t involve you after your claim is paid.
Will My Insurance Rates Go Up If I File a UM/UIM Claim?
If you were not at fault for the accident and you’re filing a UM or UIM claim, your insurance company usually will not charge you a higher premium. That’s because you’re using a part of your coverage that protects you from others—not something caused by your own actions.
Still, insurance companies are businesses. They may try to settle for less than what you deserve or delay your payment. That’s why it helps to understand your rights and consider speaking with a lawyer after a crash involving an uninsured or underinsured driver.
Tips for Saving Money While Keeping Good Coverage
Some drivers choose low coverage amounts to save money, but that decision can hurt them later. There are ways to manage premium costs while still keeping solid protection:
- Raise your deductibles: Choosing a higher deductible can lower your monthly premium. Just make sure you can afford the amount if something happens.
- Take a driver safety course: Many insurers offer discounts if you complete an approved defensive driving class.
- Bundle your insurance: Buying your auto, home, or renters insurance from the same company can often give you a discount of 10% or more.
If you’re trying to stay within a budget, boosting your UM/UIM coverage is often more affordable than increasing other parts of your policy, like liability. This means you can add more protection without raising your costs too much.
What to Do After an Accident With an Uninsured or Underinsured Driver
After any crash, the first thing to do is call the police and get medical help. Once things are safe, you should report the accident to your insurance company as soon as you can. Tell them if you believe the other driver was uninsured or underinsured.
Be careful with what you say to insurance adjusters. They might ask for a recorded statement or try to get you to settle quickly. You don’t have to sign anything right away. If you’re unsure, it may help to contact a lawyer who handles these types of cases.
An attorney can review your policy, explain your coverage, and help you fight for a fair payout. If your insurer refuses to pay or offers less than your damages, you may need to go through arbitration or even file a lawsuit.
Talk to a New Jersey Lawyer About Your UM/UIM Claim
Experiencing a car crash is hard enough. When the driver who caused it doesn’t have enough insurance, the situation can feel hopeless. That’s where uninsured and underinsured motorist coverage makes a difference. With the right policy and the right car accident lawyer in NJ, you can still get the money you need to recover.
If you have questions about your coverage or need help with a claim, call Chamlin, Uliano & Walsh at (732) 229-3200 for a free consultation. We’ll walk you through your options and fight to get you the compensation you deserve.