What is Underinsured Motorist Coverage?

A New Jersey law requires everyone to purchase $15000 worth of liability insurance, but that might not be enough to compensate you or a family member who is injured in an accident. So, you can purchase more insurance coverage to protect yourself, if you are involved in an accident in which you or a family member are injured. This is called Underinsured Motorist Coverage, which means that the other person, the responsible driver, is underinsured in relation to the amount of coverage you wish to purchase for yourself and your family members. Now, how much coverage did you purchase? Most people feel that a hundred or three hundred thousand dollars is adequate to protect themselves and their family. My recommendation is you purchase five hundred thousand dollars worth of underinsured motorist coverage, in the event you are involved in an accident with someone who does not have as much insurance coverage as you want to have for yourself and your family.