Uninsured And Underinsured Motorist Coverage In New York: What You Need To Know – Getting into an accident with an uninsured driver can be a serious problem as they usually cannot afford to compensate the victims. Although New Jersey requires all drivers to carry auto insurance, accidents involving uninsured drivers remain common. According to one study, 14.9% of drivers in New Jersey drive without insurance.
Even when the at-fault driver has auto insurance, it still may not be enough to compensate the victims. Uninsured and underinsured motorist coverage allows accident victims to receive compensation even when the driver who injured them did not have insurance or enough insurance to cover the injuries.
Uninsured And Underinsured Motorist Coverage In New York: What You Need To Know
In addition to the standard uninsured and underinsured motorist coverage that an auto insurance policy may include, it is also possible to include additional coverage in a general insurance policy. This option can dramatically expand a person’s protection against uninsured and underinsured motorist accidents.
What Is Sum (supplementary Uninsured/underinsured) Coverage
Uninsured Motorist (UM) and Underinsured Motorist (UIM) are a type of optional coverage that can be included in an auto insurance policy. Anyone purchasing a standard auto insurance policy can purchase up to $250,000 per person or $500,000 per accident worth of UM and UIM coverage.
Understanding how UM and UIM work requires some explanation of how auto insurance works in New Jersey. In any car accident, the policyholder first receives compensation for their injuries from their own Personal Injury Protection (PIP) coverage. PIP benefits are available regardless of who is at fault for the accident and do not require a lawsuit against the other driver.
However, PIP has a policy limit (which can go up to $15,000) and only covers economic damages like medical bills and job loss, not things like pain and suffering. It is common for major accidents to cause very serious injuries that PIP cannot fully cover. When this happens, the victim can only get compensation by suing the at-fault driver.
Whether the other driver is found liable at trial or agrees to a settlement, he becomes responsible for paying for the injuries of those he injured. However, it is common for the at-fault driver to not have enough money to actually pay for the injuries they caused, especially if the injuries are severe. If that driver has bodily injury liability coverage on their auto insurance policy, it pays for each of those injuries.
Uninsured & Underinsured Motorist Claims
As a practical matter, however, it is common for this personal injury liability coverage to not be available. Basic policies do not require bodily injury liability coverage at all. Even if the driver has bodily injury liability coverage, the policy limit may be too low to cover the entire claim. It’s also possible for the driver to be completely uninsured or never be identified in a hit-and-run accident.
UM and UIM come into play when the other driver’s insurance is unavailable or insufficient to cover their liability to the policyholder. UM or UIM makes up the difference between what the other driver owes and what the other driver’s insurance policy will pay.
For example, a policyholder with $250,000 of PIP coverage and $250,000 of UM/UIM coverage is involved in a car accident with another at-fault driver and the policyholder sustains $400,000 worth of injuries. The at-fault driver only has $10,000 in personal injury liability coverage. In this situation, the policyholder’s PIP covers the first $250,000, the at-fault driver’s personal injury liability pays $10,000, and the policyholder’s UIM covers the remaining $140,000 in injuries.
UM and UIM are substitutes for what a policyholder could receive from a settlement or jury verdict. So, unlike PIP coverage, they cover any type of injury loss in a car accident, not just medical bills and lost wages. Things covered by UM and UIM include:
Why All Drivers Need Uninsured/underinsured Motorist Coverage
For those who own both a home and a car, umbrella insurance can provide additional protection in the event of an accident with an uninsured or underinsured driver. Umbrella insurance is an additional policy that can be purchased by anyone who has both home and auto insurance.
Umbrella coverage typically provides additional liability coverage for injuries accidentally caused by the policyholder. However, many insurers also sell supplemental UM and UIM coverage as part of a bundled policy that can allow a policyholder to add up to $1,000,000 worth of UM or UIM coverage to what is included in their auto insurance policy . This additional coverage then becomes available to pay any UM/UIM claim that exceeds the policy limit for the auto insurance’s UM/UIM coverage.
What makes this case unique: The defense witness testified in favor of the plaintiff; the judge was a former attorney general who had lost a major case to Mr. Rosenbloom years earlier; The Court of Appeal actually increased the amount awarded.
It’s still a good idea to have uninsured motorist coverage even if you have health insurance. Health insurance only covers medical bills, but the costs of a serious car accident can include much more than medical bills, such as disability or pain and suffering.
New York Car Insurance Laws
It is a good idea to have an attorney for a UM or UIM claim. UM and UIM claims often involve hard-to-calculate amounts, such as pain and suffering, and an attorney can make the strongest case to the insurance company that you deserve more compensation.
Uninsured motorist coverage applies when the at-fault driver either does not have insurance or has never been identified. Underinsured motorist coverage applies when the at-fault driver has insurance, but it’s not enough to cover the full cost of the accident.
If you have been injured by an uninsured or underinsured motorist, contact Rosenblum Law today for a free consultation today. Our experienced personal injury attorneys can evaluate your situation and your insurance policy to see if a UM or UIM claim is the best way to obtain compensation. Call 888-815-3649 or email us today.
Adam is the founder and principal of Rosenblum Law. With more than two decades of legal experience in many areas of legal practice, his primary focus is law firm management and business development.
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Rosenblum Law is committed to providing informative content of the highest quality. All content is subject to our strict editorial standards for relevance, accuracy, sources and objectivity. Everything is checked by an editor and reviewed for legal reliability by one of our practicing lawyers before it is published.
Adam H. Rosenbloom (February 10, 2021). Coverage for uninsured and underinsured motorists in New Jersey. Rosenblum Law Firm, https:///personal-injury/nj/car-accidents/insurance/uninsured-claims/
Adam H. Rosenbloom “Uninsured and Underinsured Motorist Coverage in New Jersey.” Rosenblum Law Firm Feb 10, 2021 https:///personal-injury/nj/car-accidents/insurance/uninsured-claims/If you slide a parked car sideways, cause a fender bender, or are at fault in a more serious collision, your insurance company will cover the other person’s injuries and damages. That’s what liability insurance is for. Conversely, if someone else hits you, their insurance company will foot the bill.
But what if you’re the victim of a collision and the other driver doesn’t have enough insurance to cover your damages? Or worse, it doesn’t
The New Jersey Insurance Fair Conduct Act Helps Consumers With Uninsured And Underinsured Motorist Coverage
Uninsured Motorist (UM) coverage protects you if you are hit by an uninsured driver. It can also cover you in a hit and run. With UM, your own insurer will pay for medical bills, lost wages and property damage caused by an uninsured motorist, up to your policy limits. Without it, you could be paying those costs out of pocket — which is no small feat, considering the average cost of a UM collision is about $20,000.
¹According to the latest data from the Insurance Research Council (IRC) ²According to Hanover Insurance Group and IRC
Uninsured Motorist Bodily Injury (UMBI) pays for your or your passengers’ medical bills and lost wages if someone is injured in a collision with an uninsured motorist.
Uninsured Motorist Property Damage (UMPD) pays to repair your vehicle if it is damaged by an uninsured motorist.
What Is Uninsured Motorist Insurance?
Unlike liability insurance, the two components of UM coverage are often sold separately. In fact, many of the states that require drivers to purchase UM only require UMBI coverage and leave the decision of whether to purchase UMPD up to drivers. If you drive a newer or luxury vehicle that would cost a lot to repair or replace, we encourage you to seek out UMPD.
Uninsured (UM) and underinsured motorist (UIM) coverage are often talked about at once. You may even see them grouped together as UM/UIM, but they are actually two separate coatings. UIM is triggered if a driver who hits you
Insurance, but their liability limits are too low to fully cover your damages. This is especially important in states with low liability limits, where the minimum coverage would likely be below the total costs after a serious collision.
UIM laws, like UM laws, vary by state. Many of the states that require UM also require UIM in equal amounts, while some only require UIM if your liability limits are above the state minimum. Although UM and UIM are separate coverages, they can be sold as a combined product. Ask your auto insurance agent about the coverage requirements and cost of UIM if you are purchasing UM.
New York Uninsured And Underinsured Motorist Law & Practice
Coverage for uninsured and underinsured motorists is relatively affordable. By course for 2019
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