New Jersey's uninsured motorist law requires your insurer to cover injuries and damage you suffer in a crash caused by a driver with no insurance

In New Jersey, uninsured motorist coverage is not optional—it is mandatory on every auto insurance policy. If another driver hits you and has no insurance, your own policy must pay for your medical bills, lost wages, and vehicle damage up to your coverage limit. This is separate from the liability coverage that pays when you cause a crash; it protects you when the other driver cannot pay.

The law exists because roughly 1 in 8 drivers on New Jersey roads carries no insurance. Without this requirement, you would absorb the cost of their violation. Your insurer cannot refuse to sell you a policy without uninsured motorist coverage, and they cannot charge you extra to remove it—though you can reduce the limit if you choose.

The statute applies to bodily injury (medical costs and pain) and property damage (your vehicle repair or replacement). The coverage also extends to hit-and-run crashes where the other driver flees and cannot be identified, and to accidents involving an uninsured commercial vehicle.

Key Takeaways

  • New Jersey law requires uninsured motorist coverage on every policy; your insurer cannot remove it or charge extra to include it.
  • This coverage pays your medical bills, lost wages, and vehicle damage when an uninsured driver causes the crash, up to your chosen limit.
  • Hit-and-run crashes and accidents with uninsured commercial vehicles are covered under the same protection.
  • You can reduce your uninsured motorist limit below your liability limit, but you cannot eliminate it entirely.
  • Your insurer must offer the same uninsured motorist limit as your bodily injury liability limit unless you request a lower amount in writing.

How uninsured motorist coverage works in a New Jersey crash

When you file a claim under uninsured motorist coverage, your insurer investigates whether the other driver actually had no insurance at the time of the crash. They will request the police report, contact the other driver's insurer (if one exists), and verify registration records. This step matters because if the other driver had coverage but straightforward fled the scene, your claim may be denied—you would instead use your own collision coverage for vehicle damage.

Once your insurer confirms the other driver was uninsured, they will cover your losses. For bodily injury, this includes emergency room bills, surgery, physical therapy, lost wages while you recover, and compensation for pain and suffering. For property damage, they pay to repair your vehicle or its actual cash value if it is totaled. You pay your deductible first, just as you would with any other claim.

The amount your insurer pays is capped at your uninsured motorist limit. If you chose a $25,000 limit and your damages total $40,000, you receive $25,000 minus your deductible. This is why the limit you select matters—it is the maximum your insurer will pay, regardless of your actual losses.

Stacking and limits: what your coverage actually covers

New Jersey allows stacking of uninsured motorist coverage in certain situations. If you own multiple vehicles, each with its own uninsured motorist limit, you may be able to combine those limits to pay a single claim. For example, if you own two cars each with $25,000 uninsured motorist coverage and you are injured in one of them, you might recover up to $50,000 instead of $25,000. However, stacking rules are complex and depend on your policy language and the specific facts of your claim—your insurer will explain whether stacking applies to you.

Your uninsured motorist limit does not have to match your liability limit. The law requires your insurer to offer you the same limit for uninsured motorist coverage as you chose for bodily injury liability. If your liability limit is $100,000, your insurer will propose $100,000 uninsured motorist coverage. You can request a lower amount in writing, but you cannot eliminate it. Many drivers reduce uninsured motorist coverage to save on premiums, but this leaves them underprotected if they are seriously injured by an uninsured driver.

Underinsured motorist coverage is a separate protection that covers crashes where the other driver has insurance but not enough to pay your full damages. New Jersey does not require underinsured motorist coverage, but your insurer must offer it. If you decline it, your insurer will ask you to sign a form acknowledging the refusal.

Hit-and-run crashes and uninsured motorist claims

If another vehicle hits you and the driver flees without stopping, your uninsured motorist coverage will pay for your injuries and vehicle damage—even though you cannot identify the other driver. The police report is critical in these cases. You must file a report with local police and obtain a copy showing that the other vehicle fled. Without this documentation, your insurer may deny the claim, treating it as a collision loss instead.

The police report must describe the other vehicle if possible (color, make, partial license plate) and confirm that the driver did not stop. If you have no description of the other vehicle at all—for example, you were hit while parked and saw nothing—your insurer may deny the uninsured motorist claim and require you to use collision coverage instead. This is why calling police when ready and providing as much detail as you can remember is essential.

Some insurers require you to file a police report within a set time frame, often 30 days. Check your policy for this important date. If you miss it, your claim may be denied even if the hit-and-run was genuine.

What happens if the other driver had insurance but you cannot collect

Uninsured motorist coverage also applies when the other driver's insurer becomes insolvent—meaning the insurance company fails and cannot pay claims. This is rare but has happened. Your own insurer steps in and covers your losses up to your uninsured motorist limit. You do not need to pursue the failed insurer; your own policy handles it.

If the other driver's insurer denies the claim (for example, because the driver was not covered under that policy), you cannot automatically use your uninsured motorist coverage. You would need to pursue the other driver directly in small claims court or civil court, or use your own collision coverage for vehicle damage. Uninsured motorist coverage is designed for drivers with no insurance at all, not for disputes over whether coverage applies.

Your rights if your insurer denies an uninsured motorist claim

If your insurer denies your uninsured motorist claim, they must provide a written explanation of the reason. Common denials include: the other driver actually had insurance, you failed to report the crash to police within the required time, or you did not cooperate with the investigation. You have the right to dispute the denial.

New Jersey requires insurers to handle uninsured motorist claims fairly and in good faith. If you believe your insurer wrongly denied your claim, you can file a complaint with the New Jersey Department of Banking and Insurance. You can also hire an attorney to pursue the claim in court. Many personal injury attorneys work on contingency, meaning they take a percentage of what you recover rather than charging an upfront fee.

Before pursuing a lawsuit, consider sending your insurer a written demand letter explaining why you believe the denial was wrong and requesting reconsideration. Many claims are resolved at this stage without court involvement.

Choosing your uninsured motorist limit

Your uninsured motorist limit should reflect the maximum loss you could absorb if seriously injured by an uninsured driver. If you have significant medical expenses, lost income, or dependents, a higher limit protects you better. The cost difference between a $25,000 limit and a $100,000 limit is usually modest—often $10 to $30 per year—but the protection difference is substantial.

Consider your own health, your income, and whether you have savings to cover gaps. If you are injured and your uninsured motorist limit is exhausted, you would need to sue the other driver personally to recover additional damages. Most uninsured drivers have few assets, making a lawsuit difficult to collect on. Your uninsured motorist limit is often your only reliable source of recovery.

Review your limit every few years, especially if your income or family situation changes. You can increase your limit at any time by contacting your insurer; decreasing it requires a written request.

Frequently Asked Questions

Does uninsured motorist coverage pay if I am hit while parked?

Yes, if another vehicle hits you while parked and the driver flees, uninsured motorist coverage applies. You must file a police report and provide it to your insurer. If you have no description of the other vehicle, your insurer may deny the uninsured motorist claim and require you to use collision coverage instead, which means paying your collision deductible.

Can I refuse uninsured motorist coverage in New Jersey?

No. New Jersey law requires every policy to include uninsured motorist coverage. You cannot eliminate it entirely, though you can request a lower limit than your liability limit by submitting a written request to your insurer. Your insurer must honor the request.

What if the other driver had a suspended license but no insurance?

Uninsured motorist coverage applies. A suspended or revoked license does not change the fact that the driver had no insurance. Your coverage pays for your injuries and damage regardless of the other driver's license status.

Does uninsured motorist coverage pay for pain and suffering?

Yes. Uninsured motorist coverage includes compensation for pain, suffering, and emotional distress caused by your injuries, not just medical bills and lost wages. The amount depends on the severity of your injuries and the facts of the case. Your insurer or an attorney can help estimate what your claim is worth.

What if I caused the crash but the other driver was uninsured?

Uninsured motorist coverage does not explore if you caused the crash. You would use your own liability coverage to pay the other driver's damages, and your collision coverage to repair your own vehicle. Uninsured motorist coverage only protects you when the other driver is at fault.