What Happens If the Driver Who Hit You Doesn't Have Insurance or Not Enough Insurance?

I. The Short Answer

The Good News

If the driver who hit you has no insurance or not enough insurance, you are not stuck. Your own car insurance can protect you.

Your auto policy likely includes two important types of coverage:

• UM (Uninsured Motorist) coverage — Helps you when the other driver has no insurance at all
• UIM (Underinsured Motorist) coverage — Helps you when the other driver has some insurance, but not enough

These coverages let you get money for your injuries as if the at-fault driver had proper insurance. Most New Jersey policies include these protections.

Key TakeawayYou can still get compensation for your injuries even when the other driver cannot pay. Your own policy protects you.

II. Why This Is a Real Problem in New Jersey

Many NJ Drivers Have Very Little Insurance

New Jersey allows drivers to buy "basic" policies with very low coverage limits. Some drivers choose the cheapest options possible. Others let their insurance expire.

This means the driver who hits you might only have $15,000 or $25,000 in coverage — or nothing at all.

Medical Bills Add Up Fast

Even a moderate car accident can result in thousands of dollars in medical bills. An ambulance ride, emergency room visit, X-rays, and follow-up appointments can quickly exceed $25,000. Serious injuries involving surgery or ongoing treatment can cost much more.

Common Worries After an Accident

If you have been hurt by a driver with little or no insurance, you might be asking yourself:

• "Will I have to pay for all of this myself?"
• "Is my case hopeless?"
• "Does my own insurance actually help me?"

The answer to that last question is usually yes. That is where UM and UIM coverage come in.

III. Understanding UM (Uninsured Motorist) Coverage

What Is UM Coverage?

UM coverage is part of your own car insurance. It protects you when the driver who caused your accident has no insurance at all.

Think of it this way: Your insurance company "steps into the shoes" of the uninsured driver. They pay you as if that driver had proper insurance.

When Does UM Coverage Apply?

You can use your UM coverage in these situations:

• Hit-and-run accidents — The driver fled the scene and cannot be found
• Expired or canceled insurance — The other driver's policy was not active
• No insurance at all — The driver never bought insurance
• Stolen vehicle — The person driving a stolen car hit you

What Does UM Coverage Pay For?

• Medical expenses (after your PIP benefits are used)
• Pain and suffering
• Lost wages if you cannot work
• Damages for permanent injuries

IV. Understanding UIM (Underinsured Motorist) Coverage

What Is UIM Coverage?

UIM coverage protects you when the at-fault driver has insurance, but not enough to cover all of your injuries and losses.

The Important Rule to Know

Your UIM coverage only helps if your UIM limits are higher than the at-fault driver's liability limits.

A Simple Example

Let's say you were seriously injured and your damages total $100,000:

• The at-fault driver only has $25,000 in coverage
• Your UIM coverage is $100,000

In this case, you can collect the $25,000 from the other driver's insurance. Then, you can pursue the remaining $75,000 from your own UIM coverage.

When UIM Does NOT Apply

If your UIM limits are equal to or lower than the other driver's limits, you cannot use your UIM coverage. This is why having higher UIM limits is so important.

Quick Comparison: When Can You Use UIM?

Their Coverage

Your UIM

Can You Use UIM?

$25,000

$100,000

YES

$50,000

$100,000

YES

$100,000

$100,000

NO

$50,000

$25,000

NO

V. How UM/UIM Claims Work in New Jersey

You File a Claim With Your Own Insurance Company

This might seem strange, but it is how the system works. Even though you are making a claim against your own policy, you are not at fault. Your rates should not go up because of this claim.

You Still Must Prove the Other Driver Was at Fault

Your insurance company will investigate the accident just like they would if you were making a claim against someone else's insurance. You need to show that the other driver caused the accident and that you were injured.

Understanding the "Verbal Threshold"

New Jersey has a rule called the "verbal threshold" that affects many car insurance policies. If you chose the "limitation on lawsuit" option when you bought your insurance, you can only sue for pain and suffering if your injuries meet certain requirements.

You can sue for pain and suffering if you have:

• Loss of a body part
• Significant disfigurement or scarring
• A displaced fracture
• Loss of a fetus
• Permanent injury
• Death

If you chose the "no limitation" option, this threshold does not apply to you.

The Settlement Process

Here is what typically happens in a UM or UIM claim:

1. You file a claim with your insurance company
2. Your insurance company investigates
3. You and your insurance company negotiate a settlement
4. If you cannot agree, the case may go to arbitration or court

It is important to understand that your insurance company is not on your side in these claims. They want to pay as little as possible. This is why many people hire a lawyer.

VI. Real-Life Scenarios: How UM/UIM Coverage Works

Scenario 1: Completely Uninsured Driver

The situation: A driver runs a red light and hits you. The driver has no insurance at all. Your medical bills are $40,000.

What happens: Your UM coverage kicks in. If you have $100,000 in UM coverage, you can pursue up to that amount from your own insurance.

Scenario 2: Low-Limit Driver With Serious Injury

The situation: You suffer a serious back injury requiring surgery. Your total damages are $150,000. The at-fault driver has only $25,000 in coverage.

What happens: You collect $25,000 from the other driver's insurance. Then, if your UIM coverage is $250,000, you can pursue the remaining $125,000 from your own policy.

Scenario 3: Multiple Passengers Injured

The situation: Three family members are injured in an accident. The at-fault driver has $50,000 total coverage. Each person has significant injuries.

What happens: The $50,000 must be divided among all injured people. This means each person might only get $15,000–$20,000 from the at-fault driver. UIM coverage becomes very important to cover the rest.

Scenario 4: You Have Low Limits on Your Policy

The situation: You were hit by an uninsured driver. But when you bought your insurance, you chose the minimum UM coverage of $15,000.

What happens: You can only recover up to $15,000 from your UM coverage — even if your injuries are worth much more. This is why it is so important to carry adequate coverage.

VII. What to Do Right After an Accident

Steps to Protect Your Claim

1. Talk to a personal injury lawyer — Many offer free consultations and can help you understand your options
2. Notify your insurance company right away — Report the accident as soon as possible
3. Get your policy declaration page — This document shows your coverage limits
4. Confirm your UM and UIM limits — Know exactly how much coverage you have
5. Keep all medical records — Document every doctor visit, test, and treatment
6. Do not talk to the insurance adjuster without guidance — What you say can be used against you

Why Acting Quickly Matters

UM and UIM claims have special rules and deadlines. Waiting too long can hurt your case or even make you lose your right to recover money. Contact a lawyer as soon as possible to protect yourself.

VIII. How a Lawyer Helps in UM/UIM Cases

You might wonder if you need a lawyer for your UM or UIM claim. Here is how an experienced attorney can help:

Finding All Available Insurance

A lawyer will investigate to find every possible source of compensation, including policies you might not know about.

Getting Your PIP Benefits

Your lawyer makes sure you get all the Personal Injury Protection (PIP) benefits you are entitled to for medical bills and lost wages.

Proving Your Injuries Meet the Threshold

If the verbal threshold applies, your lawyer gathers medical evidence to show your injuries qualify.

Standing Up to Your Own Insurance Company

Remember, your insurance company wants to pay as little as possible. Your lawyer negotiates firmly on your behalf.

Going to Arbitration or Court if Needed

If your insurance company refuses to offer a fair settlement, your lawyer can take the case to arbitration or trial.

IX. How to Protect Yourself in the Future

Increase Your UM/UIM Coverage

The best thing you can do is buy as much UM/UIM coverage as you can afford. We recommend at least $100,000 per person and $300,000 per accident — or higher if possible.

It's More Affordable Than You Think

Upgrading your UM/UIM coverage is usually very inexpensive. The difference between minimum coverage and $250,000 in coverage might only be a few dollars per month. This small cost can mean tens of thousands of dollars in protection if you are ever in an accident with an uninsured or underinsured driver.

Coverage Level Comparison

Coverage Level

Protection

Minimum ($15,000)

Barely covers a moderate injury

$100,000 / $300,000

Good protection for most accidents

$250,000 / $500,000

Strong protection for serious injuries

X. Summary: You Have Options

If you have been hurt in an accident by a driver with no insurance or not enough insurance, remember these key points:

• You are not stuck. You can still get compensation for your injuries.
• Your own insurance protects you. UM and UIM coverage exist for exactly this situation.
• Know your coverage limits. Check your policy to understand how much protection you have.
• Act quickly. Report the accident and contact a lawyer as soon as possible.
• A lawyer can help. Your insurance company is not on your side — an attorney will fight for what you deserve.

Need Help With Your Case?If you were injured by an uninsured or underinsured driver, speaking with an experienced personal injury lawyer can help you understand your options and protect your right to compensation.