Updated June 2026
What Is Uninsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) protects you when the at-fault driver has no insurance or insufficient coverage to pay your claim. It pays for your medical expenses, lost wages, pain and suffering, and in some states your vehicle damage when the other driver can't. New Jersey law requires every carrier to offer UM coverage at limits matching your liability policy, though you can reject it in writing. Because New Jersey is a no-fault state with personal injury protection (PIP) as primary medical coverage, UM bodily injury typically functions as secondary or excess coverage once PIP exhausts.
- You're sideswiped on the Garden State Parkway by a driver who accelerates and disappears at the next exit. Your injuries total $18,000 in medical bills and two weeks of lost wages. Your PIP covers the first $15,000 in medical under New Jersey's standard policy. Your UM bodily injury coverage pays the remaining $3,000 in medical costs plus the lost wages your PIP didn't cover. Without UM, you pay out of pocket.
- An uninsured driver rear-ends you at a red light in Newark, causing $9,000 in vehicle damage and $22,000 in medical treatment over six months. Your collision coverage (if you carry it) pays the vehicle damage minus your deductible. Your PIP handles the first $15,000 in medical. Your UM bodily injury steps in for the excess $7,000 in medical bills. If you rejected UM coverage, that $7,000 is your responsibility.
- A driver with New Jersey's minimum $15,000 bodily injury liability runs a stop sign and T-bones your car. Your medical bills reach $42,000. Their liability pays its $15,000 limit. Your PIP covers another $15,000. That leaves $12,000 uncovered. If you carry underinsured motorist (UIM) coverage at $50,000 or higher, it pays the gap. Without UIM, you sue the at-fault driver personally — and most drivers carrying state minimums have no recoverable assets.
Who Needs Uninsured Motorist Coverage Insurance?
Retirees in New Jersey should carry UM coverage if they drive regularly in areas with higher uninsured driver concentrations — urban corridors, high-traffic commuter routes, or counties where enforcement is lighter. If your vehicle is paid off and you've dropped collision to save money, UM bodily injury becomes your only financial protection against an uninsured driver's mistake. And because New Jersey PIP maxes out at $15,000 or $250,000 depending on your election, a serious injury caused by an uninsured driver will exhaust PIP quickly, leaving UM as your next line of defense before you tap retirement savings or Medicare gaps.
Compare your PIP medical limit to the cost of a realistic injury — if you carry only the $15,000 minimum PIP and someone uninsured hits you, a broken bone or concussion will exceed that in two visits. UM fills that gap. If you've elected $250,000 PIP and Medicare covers your primary care, UM bodily injury becomes secondary backup rather than frontline protection. For property damage, ask whether your collision deductible is lower than the UMPD deductible your carrier offers — if collision is cheaper to activate, skip UMPD.
How Much Does Uninsured Motorist Coverage Insurance Cost?
Uninsured motorist bodily injury coverage typically adds $8 to $18 per month to a New Jersey auto policy; annual cost ranges from $96 to $216 depending on your liability limits and county.
- Your chosen UM limits — most retirees match their liability limits, commonly $100,000/$300,000, which costs more than the minimum $15,000/$30,000 option.
- Whether you add uninsured motorist property damage (UMPD), which covers vehicle damage from uninsured drivers and typically adds $3 to $7 per month.
- Your county's uninsured driver rate — Newark and Camden see higher uninsured percentages than suburban Morris or Somerset counties, raising UM pricing slightly.
- Stacking election — if you own multiple vehicles and choose stacked UM coverage, you multiply your per-vehicle limit across all cars, which raises the premium but dramatically increases your protection.
- Your deductible on UMPD if you elect it — New Jersey allows a deductible on property damage UM, reducing cost but increasing out-of-pocket risk.
- Carrier pricing strategy — some insurers in New Jersey price UM coverage aggressively low to meet the state mandate, while others embed it at higher rates assuming most buyers won't reject it.