Do You Have Enough Insurance? Why UM/UIM Coverage Is Critical for NJ Drivers

I. Introduction

Did you know that 10.9% of motorists in New Jersey are uninsured? Even more carry only the bare minimum required by law. If you’re involved in an accident with one of these drivers, your own auto insurance might be your only safety net.

Understanding your auto insurance coverage—especially Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage—can make the difference between financial recovery and a major setback. This post will break down what UM/UIM coverage is, why it’s critical in New Jersey, and how you can ensure you’re properly protected before an accident ever happens.

II. What is Uninsured and Underinsured Motorist Coverage?

Definitions:

• Uninsured Motorist (UM) Coverage protects you when you’re hit by a driver who has no auto insurance at all or a vehicle you cannot identify after a hit and run.
• Underinsured Motorist (UIM) Coverage kicks in when the at-fault driver’s insurance is too low to cover your damages.

Why It Matters in NJ:

New Jersey follows a “no-fault” insurance system, meaning your own policy covers medical bills and certain expenses after an accident—regardless of who caused it. However, serious injuries often exceed the limits of basic Personal Injury Protection (PIP). That’s where Uninsured and Underinsured Motorist (UM/UIM) coverage becomes essential.

If you’re hit by a driver with no insurance, or a hit-and-run driver who can’t be identified, UM coverage helps protect your financial future. Similarly, if the at-fault driver only carries the state’s minimum liability coverage, UIM can step in to bridge the gap—ensuring you’re not left paying out-of-pocket for someone else’s negligence.

In many cases, UM/UIM coverage may be the only way to recover full compensation after a serious accident—making it one of the most important protections in your auto policy.

III. New Jersey Insurance Requirements: What’s the Minimum?

NJ Minimum Liability Insurance:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $25,000 for property damage

The False Sense of Security: Minimum Coverage Isn’t Always Enough

Many New Jersey drivers assume that simply “having insurance” means they’re fully protected—but that’s not always the case. Basic or minimum coverage can create a dangerous false sense of security, especially when it comes to serious accidents.

State-required limits often fall far short when real-life medical bills, lost wages, and vehicle repairs start to add up. A single ER visit, surgery, or extended physical therapy can easily surpass $50,000. And that doesn’t even factor in the cost of long-term rehabilitation or permanent injuries.

We often help clients who discover—too late—that their coverage wasn’t enough. That’s why we strongly recommend reviewing your policy and considering more than the bare minimum in liability and UM/UIM protection. A little extra coverage can go a long way in truly safeguarding your health, your finances, and your future.

IV. Real Risks of Being Underinsured in New Jersey

NJ Driver Stats:

Being underinsured in New Jersey isn’t just a hypothetical risk—it’s a common reality. According to recent data, 10.9% of New Jersey drivers are completely uninsured, and many more carry only the bare minimum liability coverage. That means a significant number of drivers on the road may be unable to fully compensate you after a crash.

The Costs Add Up Fast:
In a serious accident, expenses can escalate quickly. Here’s what victims commonly face:

• Emergency room visit: $3,000–$5,000+
• Surgery: $10,000–$100,000+
• Rehabilitation and long-term care: Thousands more
• Lost wages from missed work: Adds up fast

If the at-fault driver doesn’t have enough coverage—or any at all—you could be stuck paying these costs out-of-pocket unless you have sufficient UM/UIM protection.

How UM/UIM Saves the Day:

Consider this scenario: you’re struck by a driver who lacks insurance. You sustain serious injuries, and your medical expenses quickly reach $75,000. Without Uninsured Motorist (UM) coverage, you would be personally responsible for covering those costs.

However, with UM coverage in place, your own policy acts as a financial safety net, helping to cover medical bills, lost wages, and other damages the at-fault driver cannot pay.

Underinsured Motorist (UIM) coverage functions similarly when the other driver’s insurance is insufficient. In both cases, these coverages ensure you’re not left vulnerable simply because another driver was irresponsible or underprepared.

V. How to Check If You Have Enough Coverage

Being proactive about your insurance coverage is one of the best ways to protect yourself and your family. Here’s how to evaluate whether your current auto policy provides sufficient protection:

Step 1: Review Your Declarations Page
Your insurance declarations page provides a snapshot of your current coverage. Look closely for the sections labeled “Uninsured Motorist” (UM) and “Underinsured Motorist” (UIM). These lines will show the coverage limits you’ve selected—if they’re equal to or less than the state minimum, it may be time for an upgrade.

Step 2: Speak With Your Insurance Agent
Having a direct conversation with your insurance agent can help clarify what your policy includes—and what it doesn’t. Ask:

• Do I have UM/UIM coverage?
• Are my current limits high enough to cover a serious accident?
• What would it cost to increase my UM/UIM coverage?

Often, increasing your coverage may be more affordable than you think—and it can make a significant difference in the aftermath of an accident.

VI. Legal Options if You’re Hit by an Uninsured or Underinsured Driver

VI. Legal Options if You’re Hit by an Uninsured or Underinsured Driver

Being hit by an uninsured or underinsured driver can leave you feeling overwhelmed—but you do have options. Your own UM/UIM coverage may provide a critical path to financial recovery, and taking the right legal steps early on can strengthen your claim.

When UM/UIM Coverage Applies:
You may be eligible to use your UM/UIM benefits in any of the following situations:

• You’re hit by a driver with no insurance
• The at-fault driver has too little insurance to cover your damages
• You’re injured in a hit-and-run accident

Key Steps to Take After the Accident:

1. Seek medical attention immediately – Prioritize your health and create documentation of your injuries.
2. File a police report – This provides an official record of the accident, which is crucial for insurance and legal purposes.
3. Notify your insurance company – Report the incident and begin the claims process as soon as possible.
4. Contact a personal injury attorney – A skilled attorney can help you navigate the complexities of UM/UIM claims, protect your rights, and pursue full compensation.

How Kotlar, Hernandez & Cohen Can Help

Dealing with an uninsured or underinsured driver can be stressful—but you don’t have to face it alone. At Kotlar, Hernandez & Cohen, our experienced legal team knows how to navigate the complexities of UM/UIM claims.

We’ll thoroughly investigate the accident, handle communications with insurance companies, and fight to secure the maximum compensation you’re entitled to. Whether the other driver has no coverage or not enough, we’re here to protect your rights and support your recovery every step of the way.

VII. Why It’s Worth Reviewing Your Policy Annually

Your life changes—and your insurance policy should keep up. Regularly reviewing your auto insurance is a simple yet powerful way to make sure you’re fully protected if an accident occurs.

Life Changes, So Should Your Coverage
Major life events can significantly impact your insurance needs:

• Bought a new car
• Moved to a new location
• Added a teen or additional driver to your policy

Each of these changes can affect your risk level and the amount of coverage you should carry.

Tips for Staying Protected Year-Round

• Set a yearly reminder to review your auto policy
• Ask your agent to explain any confusing terms or limits
• Compare quotes and coverage from multiple providers to ensure you’re getting the best value

Be Proactive—Not Reactive
The best time to prepare for an accident is before it happens. Taking just a few minutes each year to review your policy can prevent serious financial hardship down the road. Don’t wait until it’s too late—stay informed, stay protected.

VIII. Conclusion

Having the right auto insurance coverage is about more than meeting legal requirements—it’s about protecting yourself, your family, and your financial future.

Uninsured and Underinsured Motorist (UM/UIM) coverage can serve as a critical safety net when the unexpected happens, especially after a crash involving an uninsured, underinsured, or hit-and-run driver.

Taking the time to review your policy, understand your options, and increase your coverage if needed can make all the difference when it matters most.

At Kotlar, Hernandez & Cohen, we’re here to help you navigate your legal options and ensure you’re never left facing the aftermath of an accident alone.

Free Consultation with Kotlar, Hernandez & Cohen

If you’re navigating the challenges of a workers’ compensation claim in New Jersey, you don’t have to do it alone. Kotlar, Hernandez & Cohen are here to provide the expertise and support you need. With a deep understanding of New Jersey’s workers’ compensation laws and a commitment to advocating for the rights of injured workers, our team is ready to help you secure the benefits you’re entitled to and guide you through every step of the process. Our team includes English, Spanish and Portuguese-speaking legal experts, ensuring that we can offer personalized support to a diverse clientele.

File for Workers’ Compensation Benefits With Kotlar, Hernandez & Cohen – New Jersey Workers’ Compensation Lawyers

Kotlar, Hernandez & Cohen – The People First Lawyers have been helping injured workers with their New Jersey workers’ compensation claims since 1995. We work tirelessly for our clients to ensure you receive medical care, financial compensation, and justice, regardless of an adjuster or insurance carrier’s claim denials. With four Board Certified Workers’ Compensation Law attorneys on our team, we are well-equipped to handle your work injury or illness claim.

If you’re thinking about filing a workers’ comp claim, if your job has caused you ongoing physical pain in any way, or if you’re looking for help with how to maximize your workers’ comp settlement, contact our law firm to schedule a free consultation or call us 24/7 at (856) 751-7676.

---