While the law in New Jersey requires all owners of motor vehicles to carry insurance coverage, the law also allows owners of motor vehicles to carry varying degrees of coverage.
Many vehicle owners carry what is called a “Basic” insurance policy. Please see my prior blog on this topic. Under this type of insurance, the owner has insurance that provides for emergency room medical coverage only for the operator and passengers of their motor vehicle. There is no coverage in the event that their vehicle is involved in an accident that causes injury to another person.
When this happens, what are your options?
When you purchase automobile insurance on your vehicle, you should make sure that you have what is called uninsured motorist coverage. This is insurance that protects the operator and passengers in your motor vehicle in the event that your vehicle is involved in accident with another vehicle that is at fault for the accident and has either a “Basic” policy or no insurance.
Just like every other part of your insurance coverage, you may purchase limits of this coverage in varying amounts. You should purchase at least $100,000 in coverage. Anything less does not provide you with adequate protection. Then when an accident occurs, besides filing a lawsuit against the party who is at fault, you also file suit against your insurance company.
The lawsuit against the party who actually is at fault for the accident may never result in more than a paper judgment that may be extinguished if that party files for bankruptcy.
The better option is the lawsuit against your insurance company. You are limited in the amount of money you can collect to the limits of your insurance coverage. This is why you should purchase at least $100,000 in coverage. If the limits are ever offered, you should accept them.