What is uninsured and underinsured motorist coverage, and how can I protect my family?

Uninsured motorist coverage is a provision within a motorist’s insurance policy that comes into play whenever that motorist has been hit by another driver who does not have auto insurance. It is coupled with underinsured motorist coverage, which is relevant whenever a motorist is struck by another driver who does not have a maximum liability insurance that is adequate to cover the full amount of damage or injury that he or she has sustained.

In New Jersey, the law requires motorists to carry, in addition to basic auto policies, uninsured/underinsured motorist coverage with the minimum amounts of $15,000 per person and $30,000 per accident. However, in many cases involving serious injury, those minimums are not enough to cover damages that an injured party sustains in an auto accident, especially when the injured party includes family members who were passengers. In order to protect your family from the chance that a motorist who has hit your vehicle did not carry adequate insurance, it behooves you to maintain a level of underinsured motorist coverage that is much higher than the state-mandated minimum. Maintaining extra coverage, e.g., up to the amount of $500,000, will provide a cushion to protect your family should the need arise.