What Happens If I'm Hit by an Uninsured Driver in New Jersey?

If you're hit by a driver with no insurance in New Jersey, your own Uninsured Motorist (UM) coverage is generally what protects you, and it's a mandatory part of most standard auto policies in the state. If the other driver has insurance but not enough to cover your damages, Underinsured Motorist (UIM) coverage, an optional add-on, can help fill the gap. Right after the crash, seek medical attention and discuss your UM/UIM options with a car accident lawyer.

What Is Uninsured Motorist (UM) Coverage?

UM coverage is the part of your own auto policy intended to protect insured people injured or damaged by an uninsured vehicle. It can step into the place of the at-fault driver’s missing liability coverage, subject to the policy’s terms, limits, and exclusions.

For most New Jersey auto policies, UM coverage is required by N.J.S.A. 17:28-1.1,. The major exception is a Basic Policy, which does not include the same mandatory UM protection. A Standard Policy generally provides UM coverage, and insurers must offer higher UM/UIM limits up to the statutory offering limits, although the coverage selected cannot exceed the policy’s liability limits.

A vehicle may be treated as uninsured when, for example:

• No bodily-injury liability policy or bond applies to the vehicle at the time of the crash.
• The other driver’s insurer denies coverage.
• The liability insurer is insolvent or unable to pay.
• The crash involves a qualifying hit-and-run vehicle.
• The vehicle is covered by a special automobile insurance policy.

UM coverage is not automatic payment. You generally must still establish that the other driver was legally responsible for the crash and prove your losses. Depending on the facts and your policy, that can include medical expenses, lost income, pain and suffering, and property damage. Your tort option and other policy terms can affect which damages are available.

Can You Still Sue the Uninsured Driver Directly?

In theory, yes. Nothing stops you from filing a lawsuit against an uninsured driver directly. In practice, this is often not very useful, because a driver without insurance frequently doesn't have significant personal assets to pay a judgment (sometimes called being "judgment-proof"). This is exactly why UM coverage under your own policy tends to matter more in practice than pursuing the uninsured driver personally.

If the Driver Has Insurance But Not Enough

That is usually an Underinsured Motorist (UIM) issue, not an uninsured-motorist issue.

A vehicle is underinsured only when the total bodily-injury liability coverage available from the responsible parties is less than the UIM limit available under the injured person’s policy. Before UIM benefits are available, the applicable liability limits generally must be exhausted through settlements or judgments. The UIM carrier receives a credit or offset for the liability insurance recovery.

For example: if the at-fault driver has $35,000 in bodily-injury coverage and you have $100,000 in UIM coverage, a UIM claim may be available. It is not a second, full $100,000 payment; the available UIM benefit is generally reduced by the liability limits recovered.

Important: Do not settle a claim against an underinsured driver or sign a release without first giving your UIM insurer the notice and opportunity required by your policy. An unauthorized settlement can jeopardize UIM coverage.

Steps to Take If You're Hit by an Uninsured Driver

1. Report the crash to the police, even if the other driver claims no insurance is needed.
2. Notify your own insurer promptly to preserve your UM/UIM claim.
3. Document everything, including photos, witness information, and the police report number.
4. Don't accept a quick cash settlement directly from the uninsured driver before understanding the full extent of your damages.
5. Contact a lawyer to best advise you.

Frequently Asked Questions

Is UM/UIM coverage mandatory in NJ?

UM coverage is mandatory for Standard auto policies in New Jersey. UIM coverage is optional: insurers must offer it, but you can reject it in writing.

What if I don't have UM coverage?

If you selected a Basic policy, which doesn't include UM coverage, you may have limited options for recovering compensation directly from your own insurer after being hit by an uninsured driver. It's worth reviewing your policy or speaking with an attorney about what other avenues may be available.

Does a hit-and-run count as 'uninsured'?

Generally, yes. A driver who flees the scene and can't be identified is typically treated similarly to an uninsured driver for purposes of a UM claim, though you'll usually need to report the hit-and-run to police promptly to preserve this coverage.

How quickly do I need to notify my insurer after being hit by an uninsured driver?

As soon as possible. Most policies require prompt notice, and delays can create complications for a UM/UIM claim.

Can I 'stack' UM coverage from multiple vehicles on my policy?

Whether coverage can be combined across multiple vehicles on a policy depends on the specific terms of that policy. This is worth reviewing with your insurer or an attorney.

If you've been hurt and have questions about your rights, contact Levinson Axelrod, P.A. for a free, no-obligation case review.