As most people know, drivers are statutorily required to maintain liability insurance on their automobiles, to provide protection to injured parties in the event of a car accident. In New York State, drivers are only required to obtain minimum policy limits of $25,000/$50,000, which provides $25,000 in coverage for injuries to one person, and $50,000 for injuries to all persons injured in the accident.
However, the value of the injuries often far exceeds the available policy limits. Jury verdicts for most physical injuries alone exceed those sums, and economic losses can potentially be very significant. That’s where Supplemental Underinsured Motorist, otherwise known as SUM Coverage, comes in handy.
Pursuing Compensation from Underinsured and Uninsured Drivers
Because the minimum policy limits are often not enough to cover the value of the injuries sustained, many injured individuals choose to pursue additional assets from the party at fault for the accident. Unfortunately, while injured parties have a right to pursue the negligent driver for an “excess verdict,” most drivers often have minimal collectible assets, and are considered “judgment proof.” For people with significant injuries and economic losses, no further compensation may be available, and the effects can be devastating.
The problem may be further compounded with an “uninsured” driver, such as drivers who truly are uninsured, where insurance carriers deny coverage, or in situations such as a “hit and run,” where the identity of the driver is unknown. In those situations, the injured party may have no recourse for recovery at all.
The solution is to purchase Supplemental Underinsured Motorist and Uninsured Motorist (SUM/UM) coverage on your own automobile insurance policy. This will provide coverage where the negligent driver is uninsured or underinsured, and provide you the additional protection and compensation, up the amount of coverage you purchase.
Supplemental Underinsured Motorist and Uninsured Motorist (SUM/UM) Coverage
Under New York State law, every insurance carrier must offer Supplemental Uninsured Motorist (SUM) Coverage. SUM/UM insurance policies are quite affordable, and it is often possible to obtain significant additional SUM/UM coverage for a minimal increase in your policy. We recommend that our clients obtain the maximum amount of SUM/UM coverage they can afford.
Like any other auto claim, you may not be automatically entitled to coverage after an accident, and the SUM/UM insurer would have the right to dispute your coverage and pursue any available defenses. Such claims are typically resolved through arbitration, rather than jury trials.
It is also important to note that language in your policy may establish certain conditions that must be satisfied, and may require specific forms of notice of your potential claim.
Get The Help You Need to Obtain the Compensation You Deserve After an Accident with an Underinsured Driver
Pursuing the compensation you deserve after a car accident can be complicated and overwhelming, whether you’ve invested in SUM/UM insurance coverage or not. At Maynard, O’Connor, Smith & Catalinotto, we have routinely and successfully represented clients in pursuing SUM/UM claims and assisted them in obtaining necessary compensation for their injuries. We have the knowledge, experience, and resources necessary to help you recover what you are entitled to after you’ve been seriously injured in a car accident.
The experienced personal injury attorneys at Maynard, O’Connor, Smith & Catalinotto can assist you and ensure that you obtain the protection and compensation you deserve. If you have been injured in an automobile accident, please complete our free consultation form or call us right away at (800) 721-3553.
Related Resources About Insurance Coverage
SUM insurance coverage is important to have and can protect you following an accident. Depending on your accident scenario, there may be other forms of coverage that apply to you as well. Learn more about other forms of coverage in the following resources:
No-Fault Insurance FAQs – Find out what no-fault insurance is, learn about who and what it covers, and get answers to other commonly asked questions about this type of insurance coverage in New York State.
MVAIC Coverage for Uninsured Motorists – Learn about coverage provided by the Motor Vehicle Accident Indemnification Corporation (MVAIC) for uninsured motorists in New York State, and find out if you are eligible to make an MVAIC claim.
Editor’s Note: This content was originally published in 2014 but has been updated as of October 2018.
