Question 1

Does New Jersey allow UM/UIM stacking?

Accepted Answer

No. By statute, UM and UIM coverage cannot be increased by stacking the limits of multiple vehicles under the same policy or of multiple policies available to you. If you have UM under more than one policy, any recovery cannot exceed the higher of the applicable limits and is prorated between the coverages in proportion to their limits (N.J.S.A. 17:28-1.1(c)).

Question 2

What are the required UM/UIM limits in New Jersey?

Accepted Answer

$15,000 per person and $30,000 per accident for plans issued or renewed before January 1, 2023, $25,000 and $50,000 from January 1, 2023, and $35,000 and $70,000 for plans issued or renewed on or after January 1, 2026. A standard policy must offer UM and UIM up to $250,000 per person and $500,000 per accident, but not above your liability limits (17:28-1.1(a) and (b)).

Question 3

How does New Jersey UIM pay?

Accepted Answer

A vehicle is underinsured when the liability limits available are less than your UIM limits, and only after those liability limits are exhausted. Your UIM limits are reduced by what you recovered from the liability coverage, so with $100,000 of UIM and $25,000 recovered, it pays up to $75,000 (17:28-1.1(e)).

Question 4

Does the limitation on lawsuit option apply to UM claims?

Accepted Answer

Yes. For UM, to recover non-economic loss in an accident covered by personal injury protection, the tort option you elected applies, so with the limitation on lawsuit option you need death, dismemberment, significant disfigurement or scarring, a displaced fracture, loss of a fetus or a permanent injury (17:28-1.1(a); 39:6A-8(a)).

Question 5

What if I was partly at fault, and how long do I have to sue?

Accepted Answer

Your damages are reduced by your percentage of negligence, and you are barred if it is greater than the negligence of the person, or the combined negligence of the people, you seek recovery from (N.J.S.A. 2A:15-5.1). An injury action must be commenced within 2 years (2A:14-2); a person under 18 may sue after reaching majority within that time (2A:14-21).

New Jersey UM/UIM Stacking Calculator

Estimate your UM/UIM benefits

New Jersey bars UM/UIM stacking by statute, pays UIM as limits less what you recovered, and ties UM pain and suffering to your lawsuit option

New Jersey UM/UIM Stacking Calculator

Estimate your UM/UIM benefits

New Jersey bars UM/UIM stacking by statute, pays UIM as limits less what you recovered, and ties UM pain and suffering to your lawsuit option

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