When most people think of serious car accidents, they assume that big injuries automatically lead to large insurance settlements. Unfortunately, that’s not always true especially in New Jersey. One of the biggest reasons is the state’s insurance coverage limits.
Minimum Coverage Limits in New Jersey
Currently, New Jersey law requires drivers to carry at least $25,000 per injury in automobile insurance. While this may seem sufficient, in reality, $25,000 can be far from enough to cover big injuries, long-term medical care, lost wages, and other expenses after a major accident.
Ride-share companies like Uber have even lobbied to lower these minimum coverage limits to $15,000 or less. If this happens, accident victims could be left with even less protection, even in cases involving big injuries.
Why Uninsured/Underinsured Motorist Coverage Matters
This is why uninsured and underinsured motorist coverage (UM/UIM) is so important. This optional coverage allows your own insurance policy to step in when:
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You are involved in an accident with a driver who doesn’t have enough insurance to cover your big injuries.
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You are hit by an uninsured driver.
Without UM/UIM coverage, even big injuries may only result in a payout equal to the at-fault driver’s minimal coverage leaving you responsible for the rest of your medical bills and expenses.
A Real-World Example
Imagine a serious car accident where you suffer big injuries. The at-fault driver only carries the minimum $25,000 coverage. Even if your medical bills and rehabilitation costs are well into the tens or hundreds of thousands, you may only receive $25,000 in compensation.
With uninsured or underinsured motorist coverage, your policy can cover the gap, ensuring that big injuries don’t leave you financially vulnerable. This allows you to focus on recovery rather than worrying about bills.
Takeaway
Big injuries do not automatically mean big settlements. In New Jersey, the limits of other drivers’ insurance can significantly affect your recovery. Adding uninsured or underinsured motorist coverage to your policy is a simple step that can protect you and your family if a serious accident occurs.
Don’t wait until it’s too late make sure you’re fully protected today, especially when big injuries are at stake.
