New York State law requires drivers to carry minimum liability insurance coverage of $25,000 per person and $50,000 per accident for bodily injury, plus $10,000 for property damage. SUM insurance is optional coverage that drivers can purchase to protect themselves when the at-fault driver’s insurance is insufficient to cover all damages. SUM insurance pays the difference between the full value of your losses and the coverage provided by the policy of the driver who caused your accident, making it a valuable protection for serious injury cases.

What is SUM/UM Coverage?

SUM/UM coverage is designed to protect you when the other driver doesn’t have enough (or any) insurance. If you’re injured in an accident caused by a driver with low policy limits—or none at all—SUM/UM coverage on your own policy makes up the difference.

In this case, had our client carried SUM/UM coverage, Derek would have pursued additional compensation through her own insurance policy. That would have provided our client with the financial support she needed—and deserved—after such a traumatic experience.

An Example Scenario Where You Would File a Supplemental Uninsured Motorist Claim

Imagine that you were rear-ended in a car crash. Your injuries are very serious, especially a neck injury that requires spinal surgery with fusion of the cervical vertebra. You hire an attorney to file a claim against the other driver who caused the crash. Your attorney obtains compensation for $25,000, which is only the full amount of the other driver’s policy, i.e., their ‘policy limit.’

Unfortunately, the negligent driver carried minimal insurance coverage.

You know that this $25,000 settlement does not make you whole for all of the medical expenses and loss wages that occurred as a result of your significant injuries. In this case, you would need to pursue a claim against your own insurance company for the rest of the monetary damages.

With the help of an attorney, you review your own insurance policy and notice that it includes significant coverage for SUM benefits. This is good news.

In order to obtain the SUM insurance benefits, your attorney can file a demand for arbitration with the American Arbitration Association. The insurance company then can decide to offer a settlement or take the case to arbitration.

Another Scenario

Let’s say that the same accident occurs with the negligent driver carrying the same insurance policy, except in this example, you do not have SUM insurance.

Your attorney can secure the full insurance policy limit, but this will be the maximum amount available from the at-fault driver’s insurance policy. No matter how seriously you are injured, there is simply no more coverage or assets to obtain. It may not be enough to compensate for your pain, suffering, and long-term consequences.

Check the SUM/UM Limits On Your Insurance Policy

This case is a powerful reminder of the importance of reviewing your own auto insurance policy. SUM/UM coverage is often a low cost item to add or increase—and can make all the difference if you’re ever in a serious accident caused by someone else’s negligence.

At Basch Keegan & Spada, we want our clients to protect themselves before accidents happen.

If you are not sure what kind of coverage you have, we encourage you to contact your insurance agent today. And if you’ve been injured in a motor vehicle accident and need legal representation, call (845) 303-2748 or contact us online for a free consultation.