When you purchase automobile insurance, the insurance agent will bring up Uninsured and Underinsured Motorist coverage. What are these coverages and why are they necessary? Uninsured Motorist coverage is utilized when the other vehicle has no coverage at all.

Underinsured Motorist coverage is used when the other vehicle has automobile insurance, but the other person’s insurance policy limit is insufficient, and does not cover all of your damages. If you have a Standard Policy, your auto insurance should pay for damage sustained by your vehicle caused by any of the following:

• Someone who did not have liability insurance at the time of the accident.
• A business that did not have liability insurance at the time of the crash.
• Someone who did have liability insurance at the time of the crash, but for some reason their auto insurance company refuses to cover the loss.
• Someone who had inadequate insurance coverage to pay for all of your damages.
• A business that had inadequate insurance coverage to pay for all of your damages.

What if I Have a Basic Policy?

If you do not have a Standard Policy, and you only have the Basic Policy, you are not protected if you’re in an accident with an uninsured or underinsured driver. The minimum coverage someone can buy for Uninsured/Underinsured Motorist Property Damage coverage in New Jersey is $5,000, but drivers can purchase higher limits, which we highly recommend. However, policyholders are barred from purchasing Uninsured/Underinsured Motorist Coverage with limits that are higher than their liability coverage limits.

If you are considering filing an Uninsured/Underinsured Motorist claim, bear in mind that your insurance carrier will only pay the claim if the other driver was legally responsible for the accident (at-fault).

Do you need to file an Uninsured/Underinsured Motorist claim in New Jersey? For professional legal assistance, contact Brandon J. Broderick, Attorney at Law.