01/14/2026
I would like to explain Underinsured Motorist (UIM) coverage, which is one of the optional coverages included in New Jersey automobile insurance policies. Specifically, I will explain when UIM coverage applies and why it is important.
When a motor vehicle accident is caused by another driver’s negligence and results in serious injuries, the injured driver or passengers may pursue compensation for pain, suffering, and permanent injuries from the at-fault driver’s automobile insurance policy. A common problem, however, arises when the at-fault driver carries only the minimum required liability coverage, even though the injured person’s condition is severe and requires ongoing treatment, surgery, or multiple injections.
In such cases, the at-fault driver’s insurance policy is often insufficient to fully compensate the injured party for the seriousness of the injuries. Any damages exceeding the policy limits are, in theory, recoverable directly from the at-fault individual. In reality, however, the likelihood of collecting additional compensation from the individual driver is very low, as most individuals lack the financial resources to satisfy a large judgment—even if a lawsuit is filed and a verdict is obtained.
This is precisely why Underinsured Motorist (UIM) coverage is so important.
For example, assume the at-fault driver carries the New Jersey minimum liability limit of $35,000, and the injured party has $100,000 in UIM coverage under their own automobile insurance policy. In this situation, the injured party would first recover the $35,000 policy limit from the at-fault driver’s insurance and resolve that claim. Thereafter, the injured party may pursue a second recovery through their own UIM coverage for the remaining amount—up to $65,000, which represents the difference between the UIM limit and the amount already recovered.
However, if the injured party also chose to carry only the minimum UIM coverage of $35,000 in order to reduce insurance premiums, no additional recovery would be available. Because the at-fault driver’s policy has already paid the same amount, the UIM coverage would not provide any further compensation.
If you are injured due to a car accident, Lee & Kim Law is here to assist you. We help our clients to rebuild their lives and obtain rightful compensation. Call us at 551-300-2766 for free consultation.
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LEE & KIM LAW are personal injury attorneys dedicated to providing unwavering support and exceptional legal representation for individuals who suffer harm as a result of car accidents.
