5 Ways to Recover Compensation When Hit by an Uninsured Driver in New Jersey

1. Why Uninsured Driver Accidents Are Common in New Jersey

Although auto insurance is mandatory in New Jersey, state insurance department statistics indicate that approximately 14% of drivers are uninsured or carry coverage below adequate limits. In practical terms, roughly 1 in every 7 to 8 vehicles you encounter on the road may not provide full compensation if they cause a serious accident.

The good news: by properly leveraging your own policy and the protections built into NJ law, full recovery is achievable in most uninsured-driver cases. The key is identifying — quickly — which combination of coverages applies to your specific situation.

2. Method 1 — Use Your Own Auto Policy’s UM/UIM (Top Priority)

The first place to look is your own auto policy’s UM (Uninsured Motorist) and UIM (Underinsured Motorist) coverage. UM applies when the at-fault driver carries no insurance at all; UIM applies when they have insurance but the limits are insufficient to cover your damages.

3. Method 2 — Use a Resident Family Member’s Auto Policy

Even if you carry no insurance or low limits yourself, you can often recover under the auto policy of a spouse, parent, or child who lives in your household. NJ law extends coverage to “resident relatives” living at the same address.

• If you don’t drive or carry no auto policy → your parent’s or spouse’s UM coverage may apply
• When your child is in an accident → it can be processed under your family policy
• Caveat: proof of “residency” is critical (driver’s license address, mail, utility bills)

4. Method 3 — PIP (Personal Injury Protection) Covers Medical Bills Immediately

Because NJ is a “no-fault” state, your own auto policy’s PIP (Personal Injury Protection) pays medical expenses immediately regardless of who caused the accident. Whether the other driver is insured has no impact on PIP.

• Default PIP limit: $15,000 (NJ minimum)
• Available upgrades: $50,000 / $75,000 / $150,000 / $250,000
• Covered services: ER visits, hospitalization, surgery, rehabilitation, psychiatric care, and a portion of lost wages

PIP activates automatically without a separate claim — simply bring your auto insurance card to the hospital after the accident.

5. Method 4 — Other Policies May Apply if You Were a Pedestrian or Passenger

If you were walking or riding as a passenger in another person’s vehicle at the time of the accident, the pool of applicable coverage expands.

6. Method 5 — Direct Civil Suit Against the At-Fault Driver’s Assets

If none of the four options above fully covers your damages, and the at-fault driver has identifiable assets (home, business, bank accounts), you can file a direct civil lawsuit against them personally.

However, most uninsured drivers have limited assets, so the practical recoverability must be assessed in advance. Song Law Firm conducts an Asset Investigation before accepting a case to evaluate the realistic chance of actual recovery.

7. 3 Things You Must Do on the Day of the Accident

1. Get medical treatment and preserve your records — these are the foundation of any PIP claim
2. File a police report and obtain confirmation of the at-fault driver’s insurance status — required for any UM claim
3. Free consultation with an attorney (as soon as possible) — to determine the optimal combination of coverages

Frequently Asked Questions