“Bang” for the buck – Uninsured and Underinsured Motorist Coverage

“Bang” for the buck – Uninsured and Underinsured Motorist Coverage

by Raymond Ardito on

Everyone loves a bargain. Well here is one, lawyer style of course.

Protect your family against motor vehicles with no insurance or low insurance by saying these magic words to your insurance company: “I want my UM / SUM coverage to match my liability coverage!”

So what does that get you? Here’s a rundown of what those simple words mean and why your insurance company may not have told you about it!

18204960_sNew York State’s minimum insurance requirements for automobiles are far from adequate to protect those who have been seriously injured in a motor vehicle accident. It is also less likely that an individual with minimum coverage will have any assets that might provide you with the recovery you deserve. Worst of all, if the other driver has no insurance, or if an unidentified driver leaves the scene of the accident, you have no other insurance company to call.

Uninsured Motorist (UM) coverage and Supplemental Underinsured Motorist (SUM) coverage can protect you in these circumstances and you will be surprised how little it costs. However, you must do it NOW, before the accident occurs.

Here is how it works:

Uninsured Motorist Coverage (UM): Your insurance policy will provide coverage for injuries to the occupants of your vehicle which are caused by an uninsured driver or an unidentified hit-and-run driver.

Supplemental Underinsured Motorist Coverage (SUM): Your insurance policy will cover the difference between the insurance policy of the other driver and the amount of your vehicle’s insurance policy. In other words, if the other driver has $ 25,000 in liability coverage and you have $ 100,000 SUM coverage, your insurance policy will make up the $ 75,000 difference.

Your UM / SUM coverage can be as high as your liability coverage (the amount of insurance you have if you injure someone else), but it also can be lower than your liability coverage. If you have anything above the minimum liability coverage, call your insurance company and tell them you want your UM / SUM to match your liability coverage. I think you will be surprised how much you get for so little money.