This is why it is very important to make an educated decision when choosing an auto policy in New Jersey. You want to choose a policy that will cover yourself and your family and have an adequate amount Uninsured/Underinsured Motorist (UM/UIM) coverage. These types of coverage, which are not automatically provided unless chosen, will compensate for any lack of insurance policy benefits of others. Even the most serious of injuries, in most cases, will only be covered up the policy limits of the coverage of the other driver involved and any additional contingency coverage that you have chosen. When choosing a policy, by having adequate coverage, you can count on your own coverage if the other driver was not responsible enough to have it themselves. A smart choice is to purchase UM/UIM coverage at the highest level you can afford. Feel free to contact Riviere Advocacy Group LLC when making a insurance decision and we will be happy to review your insurance coverage with you.
Here is an example: If the other driver has a $15,000 policy and your injuries/damages are “valued” at $75,000, the recovery on that $75,000 that you will actually realize depend on the UM/UIM coverage that you chose. If your coverage is for $100,000, the other party’s insurance company will pay his $15,000 and your own insurance will pay you the balance, or $60,000. If your UM/UIM coverage is only $15,000, you will not recover anymore than the $15,000 paid by the other driver’s policy. Although car insurance may seem like a mundane purchase made each year, it can have a serious impact on your finances in the future!