Here’s a scenario that surprises people: you’re seriously hurt in a crash that was entirely the other driver’s fault — and that driver has a minimum policy, or no insurance at all. Their coverage runs out long before your medical bills do. What happens then? In New Jersey, the answer usually lives in your own policy, under uninsured (UM) and underinsured (UIM) motorist coverage.
UM vs UIM — the difference
- Uninsured motorist (UM): pays when the at-fault driver had no insurance at all, or fled and was never identified (a hit-and-run).
- Underinsured motorist (UIM): pays when the at-fault driver had insurance, but not enough to cover your damages — their limit is lower than yours.
In both cases, you’re effectively making a claim against your own insurer, even though you did nothing wrong. That feels strange to clients, but it’s exactly what the coverage is for.
The deadline and consent traps
UM/UIM claims carry procedural pitfalls that don’t apply to a normal third-party claim. Settling with the at-fault driver’s insurer without protecting your UIM rights can wipe out the UIM claim entirely — your own insurer often has subrogation rights that must be preserved first. And the time limits on demanding UM/UIM arbitration are governed by your policy and by statute, not by the general injury deadline. This is exactly the kind of thing that’s easy to lose by accident. (For the general clock, see our note on NJ filing deadlines.)
Why this matters before you settle anything
The order of operations in a UM/UIM case matters enormously, and the wrong first move can forfeit coverage you paid for. If you were hurt by an uninsured, underinsured, or hit-and-run driver in New Jersey, it’s worth a free call before you sign anything or cash any check — including your own. The right sequence protects every dollar of coverage available to you.
Part of our complete guide: For every related New Jersey offense, claim, and defense in one place, see our NJ Car Accident Guide.