Don’t Let a $25,000 Policy Derail a $1 Million Case: Why Uninsured and Underinsured Motorist Coverage (UIM) Matters More Than Ever in New Jersey

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In the aftermath of a serious car crash, most people assume that if the other driver was at fault, their insurance will take care of the damage—especially if the injuries are catastrophic. But here’s the harsh reality: in New Jersey, more and more of the cars on the road are covered by bare-bones insurance policies, with liability limits of $25,000—or less. And unless your own auto policy includes strong uninsured and underinsured motorist (UM/UIM) coverage, you could be stuck with pennies on the dollar.

We’ve seen it happen. Recently, multiple clients with serious injury cases—people who did everything right—were left holding the bag because the person who hit them carried a minimum-limits policy, and their own UIM coverage wasn’t strong enough to pick up the slack.

Let’s break this down.

What is UIM, and Why Should You Care?

Uninsured Motorist (UM) coverage kicks in when you’re hit by a driver with no insurance. Underinsured Motorist (UIM) coverage helps when the at-fault driver’s policy isn’t enough to cover your losses.

Think of it like a safety net built into your own policy. If someone else crashes into you, their policy pays first. But if their limits are too low—and your damages are high—your UIM coverage steps in to make up the difference.

But only if you have it. And only if it’s enough.

The Problem in New Jersey

In New Jersey, drivers can legally carry policies as low as $25,000 per person in liability coverage. That might sound like a lot, until you realize what a single ambulance ride, ER visit, surgery, or extended physical therapy can cost. Then layer on lost wages, pain and suffering, permanent disability…

Even worse? Many drivers are opting for so-called “dollar-a-day” policies—insurance that satisfies the legal minimum but provides no real-world protection. Those policies don’t include liability coverage at all, meaning if one of these drivers crashes into you, you may have no recovery option at all unless you have UM/UIM coverage.

We’re seeing it more and more. Serious cases worth six or seven figures are getting stuck—capped—by a $25,000 policy. And if the injured person doesn’t have UIM? That’s it. No more options.

The Fix: Match Your Limits

Here’s our strong advice: Match your UIM coverage to your liability limits. If your liability coverage is $250,000, your UIM should be too. Better yet, carry more if you can afford it.

Yes, it costs a bit more. But think of it like this: you’re not buying protection for someone else. You’re protecting yourself and your family from financial disaster if you’re hit by someone who’s uninsured or underinsured—which, sadly, is increasingly likely in New Jersey.

Bottom Line: Your Future Could Depend on a Box You Check Today

As personal injury attorneys, we fight hard to get our clients everything they’re entitled to. But we can’t make money appear out of thin air. If the at-fault driver is broke or underinsured, and you haven’t protected yourself with UIM, we’re left with tough conversations—and heartbreaking outcomes.

We’d rather have a different conversation now: one about how to check your coverage, what to ask your insurance agent, and how to prepare before a crash happens.

If you’ve been in an accident and aren’t sure what your options are, contact The Epstein Law Firm, P.A. for a free consultation. And if you haven’t been in one—good. Let’s keep it that way. But take five minutes to look at your auto policy and make sure you’ve got your back covered.

Because no one else on the road is going to.