What is SUM Coverage?
SUM stands for Supplemental Underinsured Motorist Coverage. This type of insurance will protect you and your family members in the event that the vehicle that struck you, did not have enough coverage to pay for your injuries.
In New York State, a vehicle is only legally obligated to carry a minimum of $25,000.00 in bodily injury insurance. This means that if you do not have SUM coverage and someone hits you with the minimum amount of insurance, your recovery could be limited to $25,000.00.
You are involved in a serious accident that causes you to fracture your arm and leaves you with a disfiguring facial scar. The car that struck you only carried the minimum of $25,000.00. Luckily, you purchased SUM coverage in the amount of $500,000.00. You will first need to settle the case for $25,000.00 with the car that hit you. After this is completed and your own insurance provided you with written consent to settle the $25,000.00, you can now obtain an additional $475,000.00 from your SUM policy.
You Cannot Carry High SUM Coverage with Low Bodily Limit Limits In New York State
This means that you cannot protect yourself with more coverage if someone hits you, but have small limits if you hit someone else. For example, If you want to have 250,000.00 in SUM coverage, then you must have 250,000.00 in bodily injury insurance if you caused injuries to someone else.
Check Your Insurance Policy and Make Sure You Have SUM Coverage
Brokers and insurance companies rarely offer and explain SUM coverage to their customers. Check your policy and make sure you have it!