If you are injured in a motor vehicle crash by an uninsured or underinsured driver, you may have no way to recover full compensation for your injuries and other losses.
Supplemental Uninsured/Underinsured Motorist (SUM) coverage protects you when someone else’s insurance falls short.
Far too often, we see clients who have suffered serious injuries caused by drivers with little or no insurance. In many of those cases, the at-fault vehicle’s policy is immediately exhausted, leaving injured victims without adequate compensation.
SUM coverage is an inexpensive and effective way to safeguard yourself and your family in the event of a serious car crash. For most drivers, SUM coverage is a small additional cost that provides significant peace of mind.
The following are answers to some of the questions regarding SUM coverage, which we are frequently asked about at Lipsitz Green Scime Cambria.
What is Supplemental Uninsured/Underinsured Motorist (SUM) coverage?
SUM coverage is part of an auto insurance policy that protects you if you are injured by a driver who:
- has no insurance; or
- has insufficient insurance to fully compensate you for your injuries. In such situations, SUM coverage allows you to seek additional compensation from your own insurance company.
Is SUM coverage required in New York?
Uninsured Motorist (UM) coverage is required by law in New York State. SUM coverage for underinsured drivers is an optional add-on. However, insurance companies are required to offer SUM coverage.
How does a SUM claim work?
If the at-fault vehicle’s insurance is not adequate enough to cover your damages:
- You must first recover the maximum available policy limits from the at-fault vehicle’s policy, including any coverage for the driver of that vehicle, if that person is different from the owner of the vehicle or not insured under that policy.
- You may then pursue a SUM claim under your own auto insurance policy for additional compensation, up to your policy limits.
What types of damages does SUM coverage pay for?
SUM coverage may compensate you for, among other things:
- Past and future pain and suffering;
- Past and future lost wages, depending on losses greater than basic economic loss; and
- Economic damages, including future medical expenses, depending on losses greater than basic economic loss.
SUM coverage does not pay for property damage.
Who is covered under a SUM policy?
SUM coverage typically applies to:
- The named policyholder;
- Resident family members;
- Passengers in the insured vehicle; and
- Pedestrians or bicyclists struck by a motor vehicle.
Will SUM coverage protect me if I was injured as a passenger in someone else’s vehicle?
You may be covered under multiple SUM policies, including:
- The vehicle owner’s policy;
- Your own auto insurance policy; and
- A household family member’s policy.
In some cases, coverage may be stacked or prioritized based on New York insurance rules.
Do I have to notify my insurance company before settling with an at-fault driver?
Yes. Before accepting a settlement from the at-fault vehicle’s insurance company, you must notify your own insurer and allow them time to investigate and ultimately consent to the settlement. Failing to follow this step can result in loss of SUM coverage.
Can my insurance company dispute my SUM claim?
Yes. Even though it is your insurance company, it acts as an adverse party in a SUM claim and may dispute liability, the seriousness of your injuries, and the value of your damages.
How are SUM claims resolved?
Most SUM claims are resolved through binding arbitration, rather than the usual process of litigation in state court. Arbitration is generally faster but still requires careful preparation and evidence.
Is there a deadline to file a SUM claim?
SUM claims are generally subject to a six-year statute of limitations in New York. However, insurance policies impose much shorter notice and procedural deadlines, making early action important. It is critical to contact an attorney right away.
Can I pursue a SUM claim after a hit-and-run accident?
Yes, provided certain policy requirements are met, including prompt reporting to law enforcement and your insurance company. In addition, physical contact and timely notice are often required.
What if I was partially at fault for the accident?
New York follows a comparative negligence rule. You may still recover compensation under SUM coverage, though your recovery may be reduced by your percentage of fault.
Do I need an attorney to handle a SUM claim?
While not required, SUM claims involve strict rules and are actively defended by insurance companies. An experienced personal injury attorney can help protect your rights, maximize your recovery, and avoid costly mistakes.
Should I Purchase Supplemental Uninsured/Underinsured Motorist (SUM) Insurance?
For most New York drivers, purchasing Supplemental Uninsured/Underinsured Motorist (SUM) coverage is one of the smartest and most cost-effective insurance decisions you can make.
Is it common to come across an underinsured driver?
In New York, drivers are only required to carry $25,000 per person / $50,000 per accident in bodily injury coverage. Serious injuries often exceed those limits quickly.
If you are hurt by a driver with minimal insurance, their policy may not come close to covering:
- Past and future pain and suffering;
- Past and future lost wages, depending on losses greater than basic economic loss;
- Economic damages, including future medical expenses, depending on losses greater than basic economic loss; and
- Long-term or permanent injuries.
SUM coverage helps close that gap.
Is SUM coverage expensive?
Increasing SUM limits typically costs very little compared to the protection it provides, especially when added to an existing auto policy. For many policyholders, higher SUM limits are among the least expensive upgrades available.
How Much SUM Coverage Should I Carry?
A common recommendation is to carry SUM limits equal to your bodily injury liability limits, or the highest limits you can reasonably afford. Many New York drivers choose:
- $100,000 / $300,000 or more; and
- Higher limits with umbrella policies.
