Stacked vs. Single-Limit UM/UIM Coverage in New Jersey

By the FigureMyTax Editorial Team · How we calculate

Stacking adds the uninsured and underinsured motorist limits of several vehicles or policies together. New Jersey bars it by statute, and with more than one policy your recovery cannot exceed the higher limit.

What stacking means

A household may have more than one vehicle or policy with UM and UIM. Stacking adds those limits after one injury, so $100,000 and $50,000 become $150,000. Single-limit coverage pays only the one limit that applies.

What New Jersey law says

N.J.S.A. 17:28-1.1(c) says UM and UIM coverage shall not be increased by stacking the limits of multiple motor vehicles covered under the same policy, nor by stacking the limits of multiple policies available to you. If you have UM under more than one policy, any recovery shall not exceed the higher of the applicable limits, and it is prorated between the coverages as each limit bears to the total of the limits.

A worked example

Suppose you are insured under two policies with $100,000 and $50,000 of UIM, you recovered $25,000 from the at-fault driver, and your damages are $250,000. UIM is limited to the higher $100,000, less the $25,000 recovered, so it pays up to $75,000, not $125,000. Try your own numbers in the New Jersey UM/UIM stacking calculator.

What to check

Look at the declarations page of each policy and remember that required UM and UIM limits rose in 2023 and again for plans issued or renewed on or after January 1, 2026. See what section 17:28-1.1 says and how New Jersey UM and UIM work.

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.