Check Your Auto Insurance Policy Now! SUM & UM Coverage & What it Means to You

Scenario: You are injured in a car accident and miss months of work. Your bills are mounting and you are getting “past due” notices from your credit card company and others. You’ve managed to pay your mortgage each month but worry that you will miss next month’s mortgage payment. You called your attorney and he again explains that he recovered the maximum from the other party’s insurance company, $25,000. This small amount, minus fees and other costs is not nearly enough.

Unfortunately, this is the reality for many auto accident victims. One moment life is business as usual, and the next things seem hopeless. Perhaps the saddest part of this story is that this can often be avoided. Please read on and be sure to check your auto insurance policy TODAY for the coverage detailed below.

Under New York Insurance Law § 3420(f)(1), motorists are required to minimally carry $25,000 of liability coverage. As you can imagine, this coverage is often inadequate, leaving the injured party in financial peril.

Supplemental Underinsured Motorist (SUM) and Uninsured Motorist (UM) insurance is coverage for YOU in case the at-fault party has inadequate coverage, or no coverage at all. Once you have exhausted the at-fault party’s insurance, your own SUM or UM coverage can pay the difference up to the policy limit.

For example, if the at-fault party has the New York State minimum of $25,000 liability coverage, and you have $100,000 in SUM coverage, YOUR insurance policy may pay up to $75,000 – the amount above the at fault party’s policy up to your coverage amount.

SUM and UM coverage serves to protect you from situations that are otherwise out of your control. This coverage is usually very inexpensive and easy to add to your existing. You owe it to yourself and your family to take a moment and check your policy now.

If you would like a free review and evaluation of your auto insurance policy please contact us now.

If you or a loved one has been injured please call 516.224.4774 for a free consultation and case evaluation. Please visit www.johncocolaw.com for more information about our firm.

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