Underinsured Motorist Insurance is provided to a policyholder who suffers injuries in an automobile accident but who is not fully compensated by the negligent party. In such cases the wrongdoer – the one who caused the auto accident – has only a limited policy of insurance. Underinsured Motorist Coverage is written into the injured party’s own policy to make up the difference between the monetary amount that he or she has received from the wrongdoer and the true value of the injuries sustained, including pain and suffering.
One recent case has addressed the issue of the time limitation for bringing such a claim, known as the statute of limitations. In a routine case brought solely against the wrongdoer, the courts allow only a two-year deadline to bring such a suit. With respect to underinsured motorist claims under one’s own policy, however, that time limitation is extended to six years from the date of the accident. Pereira v. NJM (A-2039-22)