What New Jersey Drivers Need to Know
Understanding your insurance coverage can help you make informed decisions when questions arise after an accident. New Jersey drivers should be familiar with the protections available through uninsured and underinsured motorist coverage, commonly known as UM/UIM coverage.
The New Jersey Department of Banking and Insurance explains how uninsured and underinsured motorist coverage works as part of the state’s auto insurance system.
Changes in New Jersey law have also created additional considerations for policyholders dealing with unreasonable delays or denials involving certain UM/UIM insurance claims.
What Is Uninsured and Underinsured Motorist Coverage?
UM/UIM coverage can provide protection when another driver is responsible for an accident but does not have insurance or does not have enough coverage to address the resulting losses. The New Jersey Department of Banking and Insurance defines uninsured and underinsured motorist coverage and explains how each applies under an auto insurance policy.
If you have questions following an accident, learn more about the firm’s Personal Injury legal services.
Unlike a claim made directly against another driver’s insurer, a UM/UIM claim is generally handled through your own insurance company. Understanding the policy terms and claim process can be important when questions arise regarding delays, denials, or available coverage.
New Jersey’s Insurance Fair Conduct Act and UM/UIM Claims
In 2022, New Jersey enacted the Insurance Fair Conduct Act, which created a statutory cause of action for certain policyholders experiencing an unreasonable denial or unreasonable delay involving uninsured or underinsured motorist benefits.
You can review the official statute through the New Jersey Legislature’s Insurance Fair Conduct Act.
The law established a framework for addressing certain issues involving the handling and processing of qualifying UM/UIM claims.
Understanding New Jersey’s 2022 Insurance Law
Under the Insurance Fair Conduct Act, a qualifying claimant may bring an action involving an unreasonable delay, an unreasonable denial, or certain violations of New Jersey insurance law.
Because the application of the law depends on the circumstances of each claim, policyholders should carefully review their policy, communications with the insurer, and other available documentation.
Additional Remedies May Be Available
When a violation of the Insurance Fair Conduct Act is established, the statute provides for actual damages subject to the limits established by the law, as well as pre- and post-judgment interest, reasonable attorney’s fees, and reasonable litigation expenses.
The options available in any insurance matter depend on the specific facts, policy language, and circumstances involved.
Clear Guidance for New Jersey Policyholders
Insurance-related matters can involve questions about coverage, documentation, deadlines, and communication with the insurance company.
Salomon & Aquino, LLC provides legal guidance from its Paterson, NJ office for individuals seeking to better understand accident-related and insurance matters. Explore our Personal Injury services or contact our Paterson office for additional information.
Call 862-418-1336 to speak with our team.