Uninsured Motorist Coverage — New Jersey
Uninsured and underinsured motorist coverage pays for your injuries and vehicle damage when the at-fault driver has no insurance or insufficient coverage limits to cover your losses.
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What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) protect you when another driver causes an accident but lacks insurance or carries limits too low to pay for your medical bills, lost wages, and vehicle repairs. UM applies when the at-fault driver has zero insurance; UIM applies when their liability limits fall short of your total damages. New Jersey law requires carriers to include this coverage on every policy at limits matching your liability coverage unless you sign a rejection form, making it one of the few states where UM/UIM is default rather than optional.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
New Jersey drivers should carry uninsured and underinsured motorist coverage at limits matching or exceeding their liability limits, especially if they have significant assets, high medical costs, or family members who rely on their income. Because New Jersey includes this coverage by default and the cost is low relative to the protection, most drivers benefit from keeping it rather than signing a rejection.
If the answer is no, keep your UM/UIM coverage at limits high enough to replace that gap.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
- Your UM/UIM coverage limits — higher limits cost more, and New Jersey defaults to matching your liability limits unless you select lower UM/UIM limits in writing.
- Whether you include uninsured motorist property damage (UMPD) — bodily injury coverage alone costs less than bundled bodily injury and property damage.
- Your county's uninsured driver rate — areas with higher percentages of uninsured motorists see slightly higher UM/UIM premiums.
- Your liability coverage limits — because New Jersey ties UM/UIM minimums to your liability limits, increasing liability automatically increases UM/UIM unless you reject the higher UM/UIM limits.
- Stacking options — if you insure multiple vehicles on one policy, stacked UM/UIM coverage (which combines limits across all vehicles) costs more than non-stacked coverage.
