Reader’s Question:

I am getting my own auto insurance coverage soon here in New Jersey. I was told by my father that I need to get uninsured/underinsured motorist coverage for it is required. Since I didn’t have the chance to ask him what it is, could you give me a bit of an idea as to what it does?

Lazaro

Wayne, NJ

Certainly, Lazaro, I can help you understand what protection uninsured/underinsured motorist coverage can give you. Uninsured motorist will give you coverage if you get hit by a driver who is at-fault in the accident and doesn’t have auto insurance at all. Uninsured motorist property damage is especially useful if you don’t have collision coverage as part of your auto insurance policy in New Jersey. This is a great way to protect your vehicle from uninsured motorists without a substantial increase in your rates. Uninsured motorist bodily injury could come in handy in another way. Even as a pedestrian and you get hit by a vehicle, this type of coverage will cover your medical bills as well as lost wages. This is very important even if you have medical payments coverage as part of your policy because that won’t cover for any lost wages.

On the other hand, underinsured motorist coverage will give you protection in case you get in an accident and the other driver who is at-fault doesn’t have enough coverage to pay for the damages to you and your vehicle. Underinsured motorist coverage would only pay up to the maximum value of your auto insurance policy after deducting the cost paid by the other motorist’s insurance.

Tags: auto insurance, auto insurance policy, underinsured motorist coverage, uninsured motorist coverage