UM/UIM Claims in NJ: What They Are, When to File, and How Long They Typically Take

September 10, 2025

Hurt by a driver with no insurance or not enough insurance in New Jersey? Here is how Uninsured and Underinsured Motorist coverage can protect you.

At Bramnick, Grabas, Arnold & Mangan, LLC, we know that an unexpected car crash can leave you with medical bills, time out of work, and insurance questions you can’t easily answer. Our role is to give you clear guidance and to protect your rights, from the first notice of the claim to the final resolution. We represent clients across New Jersey, including Union County and beyond, from the firm’s offices in Scotch Plains, Newark, Clifton, and Cherry Hill.

What UM and UIM Mean in New Jersey

Uninsured Motorist (UM) coverage applies when the at-fault driver has no liability insurance or cannot be identified, such as in a hit-and-run scenario. Underinsured Motorist (UIM) coverage applies when the at-fault driver’s insurance is insufficient. In this instance, your UM/UIM coverage steps in, up to your coverage limits. These coverages are part of your auto policy and are regulated by New Jersey law.

Under New Jersey law, standard auto policies must include UM coverage. A driver is considered underinsured only if their bodily injury limits are less than your UIM limit and have been fully exhausted.

On a New Jersey Standard Policy, both UM and UIM coverages are included by law. You choose the limits, and insurers must offer higher UM/UIM limits up to at least $250,000 per person and $500,000 per accident, subject to your liability limits. A Basic Policy does not include UM/UIM, so check your declarations page to confirm what you have.

Here’s What Every New Jersey Driver Should Know:

UM Property Damage Deductible (UMP/UIMPD): NJ requires a $500 deductible and at least $5,000 in property damage coverage.
Anti-Stacking Rule: If you have UM/UIM limits on multiple vehicles, NJ caps recovery at the highest single limit, not the combined total.
Step-Down Clause: Policies may reduce coverage for non-listed drivers. NJ courts generally enforce these provisions when policy language is clear, except in employer commercial policies.

When to File: Timing Matters

Give Your Insurer Prompt Notice

Most policies require prompt notice of a potential UM or UIM claim. While policy terms vary, many carriers expect early notice, even while medical treatment and investigation continue. Providing notice protects your rights under the policy and prevents avoidable disputes about late notice.

Know the Deadlines That Can Affect Your Claim

Tort claim against the at-fault driver: Two years from the date of the accident in most personal injury cases. Filing late can bar your claim.
UIM claim against your own insurer: Often treated like a contract claim, so a six-year statute of limitations can apply, although policy language can shorten that period. Recent New Jersey decisions have enforced shorter contractual limitations when clearly stated in the policy.

Why this matters: Some cases have held that failing to pursue the at-fault driver in a timely manner can jeopardize later UM or UIM benefits. The safest course is to protect both the tort claim and the UM/UIM claim within the applicable time limits.

How UM/UIM Claims Typically Proceed, and How Long They Take

Every case is different, but most UM or UIM claims follow a predictable path:

Notice of claim and policy review. You inform your insurer that you may pursue UM or UIM coverage. The insurer reviews policy terms, limits, and conditions.
Investigation of liability and damages. Your insurer evaluates fault, medical treatment, and losses, often requesting medical records and wage information.
Exhaustion and UIM evaluation. In UIM cases, the at-fault driver’s liability limits must be exhausted before UIM applies. Your carrier confirms exhaustion and compares those limits to your UIM limits.
Negotiation or arbitration. Many policies call for arbitration when the parties cannot agree on value. Arbitration timelines vary by venue and case complexity.
Litigation, if necessary. If arbitration is not available or a dispute remains, a lawsuit or application to compel arbitration can follow. Discovery and motion practice can add many months.

Straightforward claims may resolve within months. But if liability is disputed or arbitration/litigation is required, cases can stretch longer depending on medical progress, documentation, and policy terms.

Examples that Illustrate How Coverage Works

Hit-and-run with injury: You are rear-ended by a driver who flees. Police cannot identify the vehicle. Your UM coverage can respond if policy conditions are met, such as prompt notice and police reporting.
Underinsured driver with low limits: The at-fault driver has $25,000 per person in liability coverage. Your medical treatment totals far more. If your UIM limit is higher than the at-fault driver’s limit, and the liability carrier pays its limit, your UIM coverage can address the shortfall up to your limit. UIM is only triggered once those liability limits are exhausted.

Common Misunderstandings to Avoid

Myth 1. “I can stack multiple UM or UIM policies to exceed my limit.”

Fact: New Jersey law and most policy terms prohibit stacking. Recovery is limited to the highest single applicable limit, with payments split pro rata, meaning each insurer pays its fair share based on its policy limit relative to the total coverage available.

Myth 2. “I can wait to file my claims until treatment ends.”

Fact: Waiting risks missing both tort and contract deadlines, and your policy may require earlier notice. Protect your rights by giving prompt notice and then supplementing records as treatment continues.

Myth 3. “UIM applies even if my limits equal the other driver’s limits.”

Fact: UIM typically applies only when your UIM limit exceeds the at-fault driver’s limit, which must first be exhausted.

How Fault Affects Recovery in New Jersey

New Jersey follows a modified comparative negligence system. If you are more at fault than the other party or parties combined, you cannot recover damages. If you are 50 percent or less at fault, your damages are reduced by your percentage of fault. Understanding this standard is important when your own insurer evaluates a UM or UIM claim.

What You Can Do Right Now

Report the claim. Notify your carrier promptly that you may pursue UM or UIM benefits.
Preserve and organize evidence. Keep the police report number, photographs, body cam or dash cam footage if available, witness names and contact information, medical records and bills, and documentation of lost income.
Track the deadlines. Note the two-year tort deadline and any contractual time limits for a UIM claim. If your policy shortens the time to bring a contract action or to demand arbitration, calendar it now.
Know your limits. Your UM and UIM limits generally cannot exceed your liability limits, and higher limits must be offered up to at least $250,000 per person and $500,000 per accident on standard policies. Review your policy so you know what protection you have.
Ask questions early. Policy language varies, and the right early steps can make a significant difference in outcome and timing.

Why Work With Bramnick Law

Clients turn to Bramnick, Grabas, Arnold & Mangan, LLC because they want strong advocacy with a practical, client-first approach. Our firm handles personal injury matters throughout New Jersey, is ready to go to trial when needed, and is here for you at all hours. If an uninsured or underinsured driver caused your injuries, we can evaluate your policy, protect your rights by meeting legal deadlines, and guide your claim from start to finish.

Call for a Free Consultation

If you or a family member suffered injuries in a crash involving an uninsured or underinsured driver, contact Bramnick, Grabas, Arnold & Mangan, LLC. We assist clients in Union County and across New Jersey, including Scotch Plains, Newark, and Clifton. We will review your insurance, explain your options, and take steps to protect your rights.

Disclaimer: The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.