This commentary briefly explores the need for legislative or regulatory action mandating an award of attorney fees and costs for a prevailing insured’s limited pursuit of a property damage claim under New Jersey’s Uninsured Motorist Act, N.J.S.A. 17:28-1.1 et seq. (UMA). Due to the relatively small amounts generally involved and the average consumer’s inability, or understandable reluctance, to underwrite counsel fees against such financial giants, insurers have been able to avoid paying huge sums while their coffers grow fat.

Enacted in 1968, the UMA mandates that every insurer offering automobile liability coverage in New Jersey also offer uninsured motorist insurance (UM). The breadth of UMA-compelled coverage is critical because as State Farm v. Toro, 127 N.J. Super. 223 (Law Div. 1974), makes clear, no provision in any New Jersey automobile insurance policy can be given effect which in any way purports to exclude or modify UMA-mandated coverage benefits. The expanse of UMA-compelled coverage is set forth in N.J.S.A. 17:28-1.1(a)(2), which provides in relevant part:

All motor vehicle liability policies … shall … include coverage for payment of all or part of the sums which personsinsured thereundershall belegally entitled to recover as damagesfrom owners or operators ofuninsured motor vehicles … because of injury to or destruction to thepersonal property of such insured. [emphasis added]

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