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What Is SUM Coverage?
Car accidents are already stressful enough, but dealing with insurance afterward can make things that much more overwhelming.
One type of coverage that tends to get overlooked is Supplemental Uninsured/Underinsured Motorist coverage, or SUM for short. Learn more about what this coverage is, how it works, and why having it can make a difference when it comes to protecting yourself financially after an accident.
When Can You File a Lawsuit After Settling?
As mentioned above, you generally can’t sue after settling your claim, but there are a few exceptions where you might still have that option.
How Is SUM Coverage Different from Liability Insurance?
Liability insurance is required in most states, including New York. It covers the costs if you’re at fault in an accident and someone else gets hurt or their property is damaged. It’s meant to protect others from your mistakes. Unlike liability insurance, which only benefits the other driver, SUM coverage looks out for you and your passengers. Plus, instead of dealing with the other driver’s insurance, you file a claim with your own, which can make things a bit easier.
How Does SUM Coverage Work?
Once you file a SUM claim with your insurance company, you’ll need to provide documentation like police reports, medical records, and proof of the damage. Your insurance company will then review everything and decide how much you’re eligible to receive based on your coverage limits. If your claim is approved, you’ll get compensated up to the amount your policy allows.
For example, let’s say a driver who hit you only has $25,000 in coverage, but your total damages come to $100,000. Without SUM coverage, you’d be stuck with the remaining $75,000. But if you have SUM coverage with a $100,000 limit, your insurance can make up the difference.
Do I Need SUM Coverage If I Have No-Fault Insurance?
While in New York, most drivers have no-fault insurance, which helps cover medical bills and lost wages no matter who caused an accident, no-fault coverage has its limits. As mentioned above, SUM coverage gives you extra protection beyond what no-fault insurance offers.
If you’re seriously injured and your costs exceed no-fault limits, SUM coverage can cover those additional expenses. It also allows you to seek compensation for things no-fault doesn’t cover, like the emotional and physical impact of an accident.
How Much SUM Insurance Do I Need?
It depends on your personal finances and what you’d need to stay secure after a serious accident. If you have valuable assets, going for higher coverage limits makes sense to avoid high out-of-pocket costs. You should also consider your driving habits. If you drive often or in areas with a lot of uninsured drivers, more coverage is typically a smart move.
In New York, your SUM coverage has to match your bodily injury liability limits. So, if you carry $50,000 in liability coverage, your SUM coverage must be at least that amount. That said, many insurance professionals recommend going even higher, like $250,000 or $500,000, to give yourself more peace of mind.
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