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Guide · Car accidents · All states

Is uninsured motorist coverage worth it? What it pays, and when

Updated By the Counselworthy teamGeneral information, not legal advice

Short answer

It depends on the coverage you already have.

  • In 2023, 15.4% of US drivers were uninsured, the Insurance Research Council estimates.
  • In New Jersey, every standard policy must include it, at least $35,000 per person, and it covers hit-and-run drivers.
  • Underinsured coverage pays only when your limit is higher than the other driver's.

Checked November 4, 2026.

Sources: Insurance Research Council, Uninsured and Underinsured Motorists: 2017-2023 (February 2025); N.J.S.A. 17:28-1.1(a), (b), (e). Every fact cites a source

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When would uninsured or underinsured coverage pay?

Pick the one closest to what worries you. It shows which coverage pays and the rule behind it. It can't tell you how much coverage to buy, what yours costs, or what your own policy says.

A driver hits me and drives offYour uninsured motorist coverage
What it is
In New Jersey, it pays what you'd be legally entitled to recover from the driver of a hit-and-run vehicle.
Why it matters
The law that requires the coverage names hit-and-run vehicles beside uninsured and underinsured ones.
The rule
If no insurance is available, New Jersey's Unsatisfied Claim and Judgment Fund pays limited benefits. It has to be told within 180 days of the crash.
What you can check

Check your declarations page for your uninsured motorist limit.

Source: N.J.S.A. 17:28-1.1(a), (b), (e); New Jersey Property-Liability Insurance Guaranty Association, Unsatisfied Claim & Judgment Fund; UCJF Claims, N.J.S.A. 39:6-65 and 39:6-70; Pedestrian Personal Injury Protection (PIP) Claims, N.J.S.A. 39:6-61 et seq.; Notice of Intention to Make a Claim (UCJF)
The other driver has no insuranceYour uninsured motorist coverage
What it is
It pays you and others in your car. It doesn't pay the uninsured driver.
Why it matters
New Jersey's insurance department calls that a common misunderstanding.
The rule
Every New Jersey auto liability policy except a basic policy must include it, at least $35,000 per person and $70,000 per accident.
What you can check

Check that your policy lists uninsured motorist coverage, and its limits.

Source: New Jersey Department of Banking and Insurance, Auto Insurance Purchasing Planner, Uninsured/Underinsured Motorist Coverage; N.J.S.A. 17:28-1.1(a), (b), (e)
The other driver's insurance is too small for my injuriesYour underinsured motorist coverage
What it is
It can pay part of what's left after the other driver's policy pays its limit.
Why it matters
In New Jersey, a vehicle is underinsured only when its liability limits are lower than your underinsured limits.
The rule
Your underinsured coverage is reduced by what you recover from the other driver's insurance. The state's insurance department says your claim can't exceed the difference between your limit and the other driver's.
What you can check

Compare your underinsured limit with the state minimum other drivers carry, $35,000 per person.

Source: N.J.S.A. 17:28-1.1(a), (b), (e); New Jersey Department of Banking and Insurance, Auto Insurance Purchasing Planner, Uninsured/Underinsured Motorist Coverage; P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1
My limit is the same as the minimumOften nothing extra
What it is
Underinsured coverage applies only when the other driver's limits are lower than yours.
Why it matters
If both are at the state minimum, the other driver isn't underinsured by the law's measure.
The rule
In New Jersey, the minimum on a standard policy is $35,000 per person, the same as the minimum liability coverage.
What you can check

Ask your insurer what a higher underinsured limit would cost.

Source: N.J.S.A. 17:28-1.1(a), (b), (e); P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1
I'm worried about my medical billsYour PIP pays first, in New Jersey
What it is
PIP pays medical bills whoever caused the crash, so an uninsured driver doesn't change who pays them first.
Why it matters
Uninsured and underinsured coverage pays what you'd be legally entitled to recover from the other driver, beyond what PIP pays.
The rule
PIP covers up to $250,000 per person unless a lower amount was chosen in writing.
What you can check

Check your PIP medical limit on the declarations page.

Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g); N.J.S.A. 17:28-1.1(a), (b), (e)
I have a basic policyNo uninsured motorist coverage required
What it is
The rule that every policy must include uninsured and underinsured coverage leaves out basic policies.
Why it matters
A basic policy is New Jersey's alternative to the standard policy's mandatory coverages.
The rule
Standard policies must include it, and insurers must offer standard policy buyers up to $250,000 per person.
What you can check

Check which kind of policy your declarations page says you have.

Source: N.J.S.A. 17:28-1.1(a), (b), (e); P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1
I drive in other statesYour own policy's coverage
What it is
Other states can require drivers to carry less coverage than New Jersey does.
Why it matters
New Jersey's insurance department points to crashes while traveling as one reason the coverage matters.
The rule
Nationally, 15.4% of drivers were uninsured in 2023, the Insurance Research Council estimates.
What you can check

Check your policy for where its coverage applies.

Source: New Jersey Department of Banking and Insurance, Auto Insurance Purchasing Planner, Uninsured/Underinsured Motorist Coverage; Insurance Research Council, Uninsured and Underinsured Motorists: 2017-2023 (February 2025)
I'm thinking about buying moreUp to your own liability limits
What it is
New Jersey insurers must offer standard policy buyers at least up to $250,000 per person and $500,000 per accident.
Why it matters
The limits can't exceed your own liability limits for injuries and property damage.
The rule
Underinsured coverage helps only when your limit is higher than the at-fault driver's, so the amount above the minimum is what it can add.
What you can check

Ask your insurer for the price of each limit, and compare it with your liability limits.

Source: N.J.S.A. 17:28-1.1(a), (b), (e)

What uninsured and underinsured coverage pays

Both are coverage on your own policy, for injuries a driver with no insurance or too little causes.

Uninsured motorist (UM)The other driver has no insurance

It pays you and others in your car. New Jersey's insurance department says a common misunderstanding is that it pays for the driver without insurance. It doesn't.

Underinsured motorist (UIM)The other driver has too little

It applies when the other driver is insured but carries less than your damages. You claim part of the rest from your own insurer, up to the difference the rules allow.

Source: New Jersey Department of Banking and Insurance, Auto Insurance Purchasing Planner, Uninsured/Underinsured Motorist Coverage

How many drivers are uninsured or underinsured

The Insurance Research Council's newest estimates are for 2023.

15.4% uninsured

In 2023, more than one in seven US drivers were uninsured, the council estimates.

Source: Insurance Research Council, Uninsured and Underinsured Motorists: 2017-2023 (February 2025)
33.4% uninsured or underinsured

In 2023, one in three drivers had no insurance or too little, by the same estimate.

Source: Insurance Research Council, Uninsured and Underinsured Motorists: 2017-2023 (February 2025)
NJ$35,000 per person

The least a New Jersey driver on a standard policy must carry for injuries to one person, from January 1, 2026. A minimum policy pays no more than that for one person's injuries.

Source: P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1

NJHit-and-runs in Jersey City's police reports

Counselworthy analysis of NJDOT's crash tables for Jersey City. Each police report marks whether a driver left the scene.

  • 14%of crashes in Jersey City that hurt someone were hit-and-runs, where a driver left: 884 of 6,139.

What police wrote on each crash report (form NJTR-1), 2019 to 2023, the newest years NJDOT has published in full. It isn't a finding of fault. Source: NJDOT crash tables, checked November 8, 2026.

See every crash on Jersey City's crash map

In New Jersey, uninsured motorist coverage pays what you'd be legally entitled to recover from the driver of a hit-and-run vehicle. When no insurance is available, the state's Unsatisfied Claim and Judgment Fund pays limited benefits.

NJNew Jersey's rules for uninsured and underinsured coverage

NJRequired on every standard policy

Every New Jersey auto liability policy except a basic policy must include uninsured and underinsured motorist coverage.

Source: N.J.S.A. 17:28-1.1(a), (b), (e)
NJAt least $35,000 per person

And $70,000 per accident for injuries, on policies issued or renewed from January 1, 2026.

Source: N.J.S.A. 17:28-1.1(a), (b), (e)
NJOffered up to $250,000 per person

Insurers must offer standard policy buyers at least that much, and $500,000 per accident, but never more than the buyer's own liability limits.

Source: N.J.S.A. 17:28-1.1(a), (b), (e)
NJUnderinsured only below your limit

A vehicle is underinsured only when its liability limits are lower than your underinsured limits, and your coverage is reduced by what you recover from the other driver's insurance.

Source: N.J.S.A. 17:28-1.1(a), (b), (e)
NJMedical bills: PIP first

Your PIP pays medical bills whoever caused the crash, up to $250,000 unless a lower amount was chosen in writing.

Source: N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g)

What it can't do, and how to check yours

Whether more coverage is worth the price is your call. These are the parts people often miss.

  • DoFind your uninsured and underinsured limits on your policy's declarations page.
  • DoCompare your underinsured limit with the state minimum. At the same amount, it adds nothing against a driver carrying the minimum.
  • DoAsk your insurer what each higher limit costs. You can buy higher limits if you want more coverage.
  • Don'tDon't count on it to pay the driver without insurance. It pays you and others in your car.
  • Don'tDon't buy it for medical bills alone in New Jersey. PIP already pays those first, whoever caused the crash.
Source: New Jersey Department of Banking and Insurance, Auto Insurance Purchasing Planner, Uninsured/Underinsured Motorist Coverage; N.J.S.A. 17:28-1.1(a), (b), (e); P.L.2022, c.87 (N.J.S.A. 39:6A-3); N.J.S.A. 39:6A-3.1; N.J.S.A. 39:6A-4; N.J.S.A. 39:6A-4.3; N.J.S.A. 39:6A-5(g)

Sources

General information, not legal advice. We don't know the facts of your claim. A lawyer can review them, and most injury lawyers offer a free consultation.

What to do next

Questions people ask

Is uninsured motorist coverage required in New Jersey?

Yes, on a standard policy. Every New Jersey auto liability policy except a basic policy must include uninsured and underinsured motorist coverage, at least $35,000 per person and $70,000 per accident.

Does uninsured motorist coverage pay for the uninsured driver?

No. It pays you and others in your car when the other driver has no insurance. New Jersey's insurance department calls that a common misunderstanding.

Does uninsured motorist coverage cover a hit-and-run?

In New Jersey, yes. It pays what you'd be legally entitled to recover from the driver of a hit-and-run vehicle. When no insurance is available, the state's Unsatisfied Claim and Judgment Fund pays limited benefits.

When does underinsured motorist coverage pay?

In New Jersey, only when the at-fault driver's liability limits are lower than your underinsured limits. It's reduced by what you recover from that driver's insurance, so a limit at the state minimum adds nothing against a driver at the minimum.

How many drivers don't have insurance?

The Insurance Research Council estimates 15.4% of US drivers were uninsured in 2023, and 33.4% were uninsured or underinsured.

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