A car accident is stressful enough on its own. Finding out the other driver has no insurance can make a bad situation feel even worse.
New Jersey requires all drivers to carry auto insurance, but not everyone follows the law. Knowing your options can help you move forward with clarity.
Turning to your uninsured motorist coverage
If you carry a standard auto insurance policy in New Jersey, it likely includes uninsured motorist (UM) coverage. This often acts as the first line of defense after an accident with a driver who has no insurance.
While your Personal Injury Protection (PIP) coverage typically pays for your immediate medical bills and rehab costs regardless of who caused the crash, your UM coverage allows you to seek compensation for “noneconomic” damages. This includes pain and suffering, as well as certain losses that exceed your standard policy limits.
Factoring in your percentage of fault for the accident
New Jersey operates under a modified comparative negligence system, which will allow you to recover damages as long as you are not more than 50% responsible for the accident. However, the insurer will reduce your final payout by your specific percentage of liability.
For example, if the insurer finds you to be 20% at fault, your compensation will be reduced by 20%. But should your responsibility be 51% or more, you will not be able to recover damages.
Pursuing a direct lawsuit against the at-fault driver
Filing a UM claim is not your only option. You may also choose to sue the uninsured driver directly for the harm they caused.
In New Jersey, you have two years from the date of the accident to file a personal injury claim. If you are only seeking compensation for vehicle repairs or property damage, that window extends to six years.
The main challenge is that many uninsured drivers lack the assets to satisfy a judgment, making it difficult to collect even if the court rules in your favor.
