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What is SUM/UM Insurance?

Man frustrated on the phone with car accident in the background

SUM or UM insurance is vital for drivers in New York. This insurance coverage can provide you with the additional financial protection you need if you are involved in an accident. This blog will explain what SUM/UM insurance is and how it can benefit you.

What is SUM/UM Insurance?

Supplementary underinsured motorist (SUM) or uninsured motorist (UM) insurance refers to a form of coverage that is meant to protect you in the event an underinsured or uninsured driver hits you. While this coverage sounds extremely helpful, many insurance companies fail to tell their policyholders about it. This is because the damages are paid for by the injured party's own insurance company.

Because many are unaware of the benefits of SUM/UM insurance, clients are left with little to no coverage since the other party doesn’t have adequate coverage. SUM/UM insurance is quite affordable, and it’s recommended to purchase as much coverage as you can afford.

How is SUM/UM Insurance Helpful?

New York is a ‘no-fault’ state, meaning that each driver must carry personal injury protection (PIP) insurance that will cover their own medical expenses in the event of an injurious car accident. New York drivers must carry a minimum of $50,000 in PIP coverage. Often, in accidents with severe injuries, this is not enough. Or perhaps the victim is seeking damages for pain and suffering (which PIP does not cover). This is where SUM/UM coverage would be extremely helpful.

Negligent Driver is Underinsured

Let’s say you’re a driver that has sustained injuries in a car accident resulting in $30,000 in medical expenses. Your PIP insurance should be able to cover your expenses. However, due to the injuries, you may expect pain and suffering damages worth $50,000.

The negligent driver’s insurance only covers damages for up to $25,000. If you had not purchased SUM coverage, you could only collect that $25,000. However, with SUM coverage of, say, $50,000, you could collect the negligent driver’s $25,000, and your own insurance would cover the difference. Although we do not expect to get into accidents, they still happen regardless—that’s why we recommend speaking with your insurance provider soon about adjusting your policy. Paying a small amount now can prevent you from paying a higher price later.

Need More Financial Help?

In the event of an accident with an underinsured or uninsured driver, it’s essential to act quickly. Although you would hope your own insurance company may be of help, sometimes they can try to lowball you. Luckily, the attorneys here at Salenger, Sack, Kimmel & Bavaro, LLP are here to protect your rights and help you fight for maximum compensation.

Call our office today at (800) 572-7246 or fill out a consultation request form to get in touch with one of our legal experts.