Is UM/UIM stacking legal in New Jersey?

No. Section 17:28-1.1(c) bars it.

What are the minimum UM/UIM limits now?

$35,000 per person and $70,000 per accident for plans issued or renewed on or after January 1, 2026, unless a basic policy.

Does the rule apply to underinsured coverage too?

Yes. The statute covers uninsured and underinsured coverage.

Do I have to tell my insurer before settling?

The statute makes unauthorized settlements a permitted policy condition; ask your insurer in writing first.

Can employees get the business's UM/UIM?

If a business is the named insured, an employee is deemed to have the maximum UM/UIM available under the policy.

Does New Jersey Allow UM/UIM Stacking? What N.J.S.A. 17:28-1.1 Says

By the FigureMyTax Editorial Team · How we calculate

No. New Jersey statute says UM and UIM limits may not be stacked across vehicles on one policy or across policies, and it sets required limits that rose in 2023 and again for plans issued or renewed on or after January 1, 2026.

The antistacking rule

Subsection (c) of N.J.S.A. 17:28-1.1 says UM and UIM coverage shall not be increased by stacking the limits of multiple vehicles under the same policy or of multiple policies available to you, and caps recovery under more than one policy at the higher limit, prorated.

Required limits

Every motor vehicle liability policy except a basic policy must include UM and UIM coverage in limits of $15,000 per person and $30,000 per accident for plans issued or renewed before January 1, 2023, $25,000 and $50,000 for plans issued or renewed on or after that date and before January 1, 2026, and $35,000 and $70,000 for plans issued or renewed on or after January 1, 2026 (subsection (a)). A standard policy must offer UM and UIM up to $250,000 per person and $500,000 per accident, but not more than your liability limits (subsection (b)).

What counts as underinsured

A vehicle is underinsured when the sum of the liability limits available from the person you seek recovery from is less than your UIM limits, and only after those liability limits are exhausted by settlements or judgments. Your UIM limits are reduced by what you recovered from the liability coverage (subsection (e)).

Terms and conditions

UM and UIM are subject to policy terms, conditions and exclusions approved by the Commissioner, including unauthorized settlements, non-duplication of coverage, subrogation and arbitration (subsection (d)). Settling with the at-fault driver without your insurer's consent can therefore matter; ask your insurer first.

How to use this

Compare the results in the New Jersey UM/UIM stacking calculator, start with the plain-English stacked versus single-limit explainer, and read how New Jersey UM and UIM work.

Injured in New Jersey?

A local personal injury attorney can review your claim — many offer a free consultation.

Talk to a New Jersey attorney

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how New Jersey's rules apply to your specific case with a licensed New Jersey attorney.