Car accident losses can be costly and difficult to pay for without insurance coverage and compensation. While you must first rely on your no-fault coverage to recover, it may not be enough to cover your losses. This means you must look elsewhere for compensation. When at-fault drivers cannot cover your excess losses, you need to turn to an uninsured/underinsured motorist claim attorney in New Jersey to navigate claims under your own UM/UIM policy if you have it.
Seigel Law has 50 years of experience practicing personal injury law in New Jersey and is adept at handling the nuances of uninsured/underinsured motorist claims. A New Jersey car accident lawyer from our team handles all of the logistics of your case with the professionalism and care you deserve. When you are facing uncertainty, we walk beside you and seek answers and results on your behalf.
Understanding Uninsured & Underinsured Motorist Coverage in New Jersey
New Jersey law requires all drivers to carry auto insurance to operate a vehicle. The New Jersey Department of Banking and Insurance – Auto Insurance Consumer Guide provides guidance on the options available to drivers throughout the state.
The Basic and Standard policies are the two primary options drivers have. The basic policy provides property damage and personal injury protection coverage (PIP), while the standard policy adds bodily injury and uninsured/underinsured motorist coverage.
However, some drivers still drive without auto insurance. These drivers may not be able to afford coverage or may drive with a lapse in coverage, whether intentionally or not. Drivers may also carry insufficient coverage to cover the costs of an accident.
To protect yourself and your ability to recover compensation if you are involved in an accident with one of these drivers, it is highly recommended to obtain uninsured motorist (UM) or underinsured motorist (UIM) coverage when setting up your policy. This coverage allows you to cover more of your losses if your PIP coverage is not enough and the at-fault driver cannot cover your additional losses. Speak to a lawyer about the UM/UIM insurance claims process in New Jersey to determine what to do next.
Difference Between Uninsured (UM) and Underinsured (UIM) Motorist Claims
While they sound similar and are often grouped together, uninsured and underinsured motorist coverages serve different purposes and apply in different situations. If you have this coverage as part of your auto insurance, understanding the difference between the two can help you determine what type of claim you can utilize to reduce your accident expenses. Below is a closer look at the UM/UIM insurance claims process in New Jersey.
Uninsured Motorist Coverage and Claims
As the name implies, uninsured motorist coverage applies when another driver does not have an active insurance policy. This type of coverage can also apply when you cannot recover compensation from an at-fault driver. This is most likely to apply during a hit-and-run injury claim in NJ. An uninsured motorist claim helps when you can’t seek compensation from the other driver.
Underinsured Motorist Coverage and Claims
Underinsured motorist coverage offsets the difference between your remaining losses and the amount that exceeds the driver’s insurance coverage. This generally applies if the at-fault driver has low limits on their auto insurance policy and they’re not enough to cover the damages not covered by your PIP policy. An underinsured motorist claim lawyer in NJ can advise you on how to approach this type of claim.
Common Scenarios Requiring a UM/UIM Claim in NJ
While a hit-and-run injury claim in NJ may be the first situation to come to mind, there are several scenarios where you may need to file a UM/UIM claim after a car accident. Gaps in recovery are not uncommon after an accident, and UM/UIM policies can bridge that gap if you have opted for this coverage on your auto policy. Some common situations that require a UM/UIM claim can include:
- Hit-and-run accidents
- The at-fault driver was not insured
- The at-fault driver did not have enough coverage to pay the full value of your remaining losses
- The at-fault driver refuses to take responsibility
- The at-fault driver’s insurance company denied your claim
- A paying party is insolvent
When you cannot secure compensation from another party, UM/UIM coverage can be a lifeline to help you make up the rest of your losses after PIP coverage. Work with an uninsured motorist attorney in New Jersey to make sure you have exhausted all your other options for recovery first, and follow their guidance on how to file a claim.
Why Filing a Claim Against Your Own Insurance Company is Adversarial
When you have been in an accident, your goal is to recover compensation to cover your losses as quickly as possible. The insurance company’s goal is to protect and retain its profits and pay out as little as possible. To avoid paying you the full value of your losses, some insurance companies resort to bad faith tactics. This can include deliberately delaying your claim, blaming you for the accident, using technicalities to reduce or deny your claim, and more.
Since insurance companies are subject to certain requirements, you can file a bad faith claim against your own insurance company when they do not comply and withhold fair compensation. While this can help you recover damages you may be owed, it is an adversarial action because you and the insurance company have opposite interests. Suing your insurance company can further delay your ability to recover your losses and complicate the situation before it improves.
Step-by-Step Process for Filing a UM/UIM Claim in New Jersey
Before you ever file a UM/UIM claim, you should ensure that you seek medical care after an accident. You should also take early steps to gather evidence, such as filing a police report, taking photos, and getting witness information. These preliminary steps can help when you eventually file your claim. Similarly, hiring an underinsured motorist claim lawyer in NJ can also make the process easier to navigate.
Since New Jersey is a no-fault state, you will generally pursue your initial losses through your PIP policy. When you need to cover additional losses that can’t be recovered from an at-fault driver, you can fill out paperwork to request compensation through your UM/UIM coverage with your insurance company. You should also submit the evidence you collected with your claim to support your request. Insurance adjusters review your claim, and your lawyer negotiates with them to secure a fair outcome.
Damages You Can Recover Through UM/UIM Coverage
Since UM/UIM coverage is designed to compensate you for what you would normally be able to recover from another driver, it allows you to recover a wider range of losses than you can through a PIP claim. An uninsured motorist attorney in New Jersey can help you identify all of your applicable losses, determine their value so they can calculate how much your claim is worth, and see how much coverage is available on your policy. Some losses that can be recovered through your UM/UIM coverage can include:
- Cost of your initial and ongoing medical expenses, including surgery, rehabilitation, medications, and more
- Cost of the damages your vehicle sustained
- Lost wages while you are out of work and recovering from injuries
- Lost earning capacity when you cannot work or have to work in a reduced capacity due to permanent injuries
- Physical, emotional, and psychological pain and suffering
- Lost quality of life
- Lost intimacy or companionship
Seigel Law works diligently to secure the compensation you need through a UM/UIM claim so you don’t have to continue suffering financial stress. Our skilled team negotiates with your insurance company for you so you can recover a better outcome and case results.
How an Experienced NJ Car Accident Attorney Maximizes Your Recovery
The danger of handling an uninsured/underinsured motorist claim alone is not knowing the pitfalls and obstacles that can arise during these cases. For example, apologizing or phrasing statements the wrong way can cost you a significant amount of compensation. Similarly, insurance companies use strategies to protect themselves and keep more money in their pockets. However, hiring an experienced New Jersey motor vehicle accident lawyer can protect you from these situations.
Lawyers know how to leverage evidence, customized strategies, and negotiation tactics to protect your rights and secure a higher settlement value to better cover your losses. They can review your policy to ensure insurance companies aren’t exploiting unnecessary loopholes or technicalities. Demand letters can also clearly detail your losses and help maximize recovery.
If an acceptable settlement cannot be reached with your insurance company, you may be able to pursue litigation against them in the New Jersey Court System. Suing your insurance company can be complicated and require substantial evidence of bad faith, so letting your lawyer take the lead is critical. However, litigating your claim can help you recover and maximize your damages.
Seigel Law Provides the Guidance You Seek After a Car Accident
Seigel Law understands how stressful it can be to recover your losses after an accident, especially when the at-fault driver is unavailable or lacks the insurance coverage to cover your expenses. Our experienced attorneys help you navigate the UM/UIM insurance claims process in New Jersey as smoothly as possible so you can get the compensation you need. To get started, contact us to schedule a free case evaluation.
Frequently Asked Questions
Will my insurance rates go up if I file an uninsured motorist claim in New Jersey?
Your insurance rates should not go up in most cases if you file an uninsured motorist claim with your insurance company. Insurance premiums are more likely to increase if you contributed to an accident, so if you are free of fault, your coverage costs should not increase in these situations. However, if your insurance company treats you unfairly and tries to raise your premiums, talk with your uninsured motorist attorney in New Jersey about how to fight back.
How does UM coverage handle a hit-and-run crash where the driver isn’t identified?
Law enforcement and your lawyer can try to locate and identify the driver who hurt you in a hit-and-run accident, but they are not always successful. When this happens, you need to file a claim under your uninsured motorist coverage since there is no one to file a claim against. This coverage essentially replaces the compensation you could have pursued from the other driver if they hadn’t fled. You can work with an attorney to file a hit-and-run injury claim in NJ to offset your uncovered losses.
What happens if the at-fault driver’s insurance limit doesn’t cover my medical expenses?
If your medical expenses cost more than your personal injury protection insurance and the compensation you can recover through an at-fault driver’s insurance claim, you may have to look to additional sources of compensation. If applicable, you could pursue damages for medical expenses through your health insurance. You could also sue the at-fault driver, but this may not be viable if they lack the resources to provide additional compensation.
What is the deadline for filing a UIM claim under New Jersey Law?
If you wish to file a UIM claim with your insurance company, you may have up to six years to initiate the claim, per New Jersey Statute § 2A:14-1. However, you should read your insurance policy carefully to see if they require claims to be filed within a shorter time. An underinsured motorist claim lawyer in NJ can help you understand your policy and determine what time limits affect your case.