Why does your auto policy have uninsured/underinsured motorist coverage?

The answer is simple. It protects you and your family. Knowing you have auto insurance is easy. But, knowing how much coverage you have for uninsured or underinsured motorists is a bit more difficult.

When another driver seriously injures you, that driver’s policy pays for your loss under liability coverage. Basically, your policy takes care of them, and their policy takes care of you. However, what if the other party does not have auto insurance, or the other driver does not have enough? This is when your UM/UIM coverage comes into play.

According to a study directed by the Insurance Research Council, 14.9 percent of New Jersey drivers were uninsured in 2015. New Jersey state law requires you to have auto insurance. The more auto insurance coverage you have, the more protection you have from lawsuits that could go after your personal assets. However, while auto insurance does protect you when you have an accident, it does not prevent you from having an accident. Nor does it prevent you from getting into an accident with one of the 14.9 percent of New Jersey residents who are uninsured. If that happens, you could be in trouble.

New Jersey only requires a policyholder to carry minimum limits of $15,000/$30,000 for UM/UIM. This means that although your liability limits could be substantially higher (for example, $100,000), you would only be entitled to recover $15,000 if you are injured as a result of an accident with an uninsured or underinsured motorist. The good news is that you don’t have to limit your protection.

Give us a call today to discuss increasing your limits for underinsurance and uninsured to match the auto liability on your existing policy.

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