What is SUM/UM coverage, and why is it important to me?

Supplemental Underinsured Motorist and Uninsured Motorist coverage is an important part of your automobile insurance policy. This portion of your policy covers you and your resident relatives up to the amount of coverage you purchase.

This means that if the person who causes a car accident is uninsured, there is still coverage for you and your household relatives, up to the amount of coverage you purchase.

This also means that if the person who causes an accident is underinsured, there may be additional coverage available up to the amount of your rider.

Underinsured Motorist coverage does not provide coverage in the amount you purchase – it means that you have coverage up to the amount you purchase. In other words, any coverage the at-fault party has is deductedfrom the amount you purchase.

For example, if the at-fault party has the New York State minimum liability coverage of $25,000, and you have a $100,000 SUM/UM rider, then the most you could ever recover is $100,000. In basic terms, it means that you have an additional $75,000 available, that you would not have had if you did not purchase the SUM/UM rider.

There are many situations where your SUM/UM coverage might be used – but again, this is coverage for you. Even if you have $100,000/$300,000 in liability coverage, it might not mean there is that much available for you. It is a good idea to make sure that you are properly covered. 

Contact us to review your automobile policy coverage, so that we can explain how the coverage works, each coverage’s limitations, and how it might benefit you.