Uninsured Motorist (UM) Claims in New Jersey: How to Use Your Own Policy When the At-Fault Driver Has No Coverage

PERSONAL INJURY LAW · SONG LAW FIRM COLUMN

Situation

A significant share of New Jersey crashes involve an at-fault driver who carries no insurance at all, or a hit-and-run driver who cannot be identified. When that happens, the injured driver or passenger typically has only one meaningful recovery path: the Uninsured Motorist (UM) coverage on their own auto policy. UM claims are filed against the injured person's own insurance carrier, which means the relationship is adversarial from the start.

Legal Concept

UM covers bodily injury caused by an at-fault driver who has no liability insurance, or by a hit-and-run driver. UIM (Underinsured Motorist) is a related but distinct coverage that applies when the at-fault driver's policy limits are inadequate; this article focuses on UM.

A UM claim is both a contract claim against your own insurer and a subrogation-related indemnity claim. After paying you, your insurer inherits the right to pursue the uninsured driver directly.

NJ Rules

Key statutes and coverage rules:

• N.J.S.A. 17:28-1.1 — every New Jersey auto policy must include UM/UIM coverage, with minimum bodily-injury limits of $15,000 per person and $30,000 per accident, plus $5,000 property damage
• N.J.S.A. 39:6A-8 — Verbal Threshold and other threshold rules apply to UM claims the same as to standard third-party claims
• Most UM provisions include mandatory arbitration, so smaller UM claims resolve without a courthouse trial
• Anti-stacking — since 1988, New Jersey has prohibited stacking of UM limits across multiple vehicles on the same policy

Because the Verbal Threshold on your own policy also applies to UM claims, non-economic damages require meeting one of the six statutory injury categories.

Practical Response

• Give your own insurer written notice of the UM claim promptly after the crash. Policies typically require notice within a "reasonable time"; within 30 days is a safe practice.
• For a hit-and-run, report to the police and obtain a police report number. Most UM provisions require a police report as a condition of coverage.
• Preserve accident scene, injury, and medical evidence with the same discipline you would use against a third-party defendant, because your own insurer will pivot to arbitration if it denies the claim.
• Consult independent counsel before agreeing to an Examination Under Oath (EUO) requested by your insurer.
• Be cautious with recorded statements to your own carrier — remember, the relationship is adversarial here.

Common Misunderstandings

• "My own insurer is on my side." Once a UM claim is opened, your insurer's interests directly conflict with yours over payout amount.
• "UM is paid by the other side's insurance." It is not. Your carrier pays first, then subrogates against the uninsured driver.
• "Filing a UM claim will raise my premium." New Jersey law prohibits raising a premium solely because the insured filed a UM claim.
• "It is a small claim, so I do not need to bother." Delay can waive the UM claim due to notice or statute-of-limitations issues that arise later if a third-party defendant is identified.

Key Takeaways

• Every New Jersey auto policy includes UM/UIM, but many are held at the statutory minimum. Reviewing limits before a crash is a low-cost precaution.
• UM claims are made against your own insurer, and are adversarial from the outset.
• Hit-and-run claims typically require a police report and prompt notice.
• Verbal Threshold and the 51% Rule apply to UM claims just as to third-party claims.
• New Jersey follows anti-stacking, so multiple UM limits on the same policy cannot be aggregated.

FAQ

• What happens if the at-fault driver is later identified?

Once identified with coverage, the claim shifts from UM to UIM or a direct third-party claim. Any amount already paid under UM will be recovered through subrogation from the identified driver's insurer.

• If I did not report the hit-and-run to the police, can I still recover under UM?

Most policies require a police report. Exceptions exist for good cause (serious injury, language barrier), but late reporting should still be filed immediately to preserve the claim.

• Can passengers use the vehicle owner's UM coverage?

Yes. Passengers are generally covered by the vehicle owner's or driver's UM coverage.

• Can I appeal a UM arbitration award to court?

Most policies make arbitration binding, but awards above certain thresholds may permit a trial de novo. The specific policy language controls.

• Which UM applies if I am hit-and-run while driving a rental car?

Usually your personal auto policy's UM applies first, with any rental company supplemental coverage stacked or coordinated depending on the contract language.