| New Jersey requires drivers to have auto insurance, but some
motorists drive illegally without it. In addition, you may be involved in an accident while
traveling in another state, where less coverage is required.
A common misunderstanding is that uninsured motorist coverage pays for the person
who is driving illegally. This is not true – this coverage pays you and others in your
car if you are involved in an accident in which the other driver is uninsured.
Similarly, underinsured motorist coverage protects you if there is
an accident and the other driver is legally insured, but has less liability
coverage than you do. If your damages are greater than the limits of
the other driver’s policy, you can make a claim for the balance to your insurer.
Your claim cannot exceed the difference between your liability limit
and that of the other driver.
If you have a Standard Policy, a minimum amount of uninsured/underinsured
motorist coverage is required. You can purchase higher limits if you
want additional coverage.
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