Why Every Driver Should Have SUM Insurance: What is it and How Will it Help Me?

Why Every Driver Should Have SUM Insurance: What is it and How Will it Help Me?

SUM is an acronym for Supplementary Uninsured/Underinsured Motorists Endorsement. Essentially, it provides insurance by way of monetary compensation for any injuries that you may have sustained as a result of someone else's carelessness. Its as if you purchased car insurance for the person who caused your accident so that you can ensure that there is enough coverage to compensate you for your injuries.

Let's digress.

In New York, to drive an automobile, the law requires you to purchase an insurance policy in case you cause an accident. If the accident is your fault, the theory is that your insurance policy will kick in to make any parties injured by your carelessness whole. This may be as simple as paying for the damage sustained to the person's automobile. It can however also pay to compensate anyone for any pain and suffering they suffered as a result of your actions.

Now, the problem occurs when the person who caused the accident has little -- or even worse -- no insurance on their car. It is rare when someone has no insurance on their car; it is also illegal. More likely is the situation where the insurance coverage is limited. In New York, the law mandates that the minimum policy limits for car insurance is $25,000 per person per accident and $50,000 total. In situations where someone is catastrophically or even severally injured by a driver with only a $25,000 policy, it is clear that the limited policy will not be sufficient to make the injured party whole.

For instance, if driver Barry Badriver runs a red light and smashes into Paul Perfect and Paul Perfect is injured, Paul Perfect would be entitled to sue Barry Badriver for any pain and suffering he may have sustained. Paul Perfect may also sue Barry Badriver for any wages he lost because he was so injured that he missed time from work. Further, say that Paul Perfect was so injured that he needed shoulder and knee surgery and that he missed nine months of work to recuperate. Further assume that Paul Perfect also badly injured his back and it is becoming so problemic that he is certain that his career as a carpenter will not last much longer. Lastly, assume that Barry Badriver was only insured by a $25,000 policy. What would that mean for Paul Perfect?

In truth, the fact that Barry Badriver has a limited insurance policy may prove to be disastrous for Paul Perfect. As an initial matter, Paul suffered shoulder and knee injuries and underwent two surgeries and extensive and painful rehabilitation. Will Badriver's $25,000 compensate Perfect for that pain he had to endure? Probably not. In addition, what about the lost wages that Paul Perfect missed because he was out sick with the injuries, none of which were his fault. Paul Perfect may have been making $100,000 a year. If he missed nine months, that means he lost about $75,000. Obviously, Badriver's meager $25,000 policy wont be enough to cover that. What about the fact that Paul may never return to work as a carpenter? Who is going to help Paul with that?

You may be wondering whether there are any steps you can take to ensure that you do not become Paul (not so) Perfect. The answer, fortunately, is yes -- there is something you can do to protect you from this situation. Its called Supplementary Uninsured/Underinsured Motorists Endorsement ("SUM") coverage.

SUM coverage allows you to buy insurance to "supplement" any insurance that the other driver who crashes into you has. So, now, if a Barry Badriver crashes into you with his tiny $25,000 policy and you are badly injured, you will have the added benefit of collecting from both Barry Badriver's limited policy as well as from your SUM policy. Thus, in the end, you will now have two policies to go after.

Your local insurance broker will be in the best situation to tell you how to get SUM coverage. Policy limits range from $25,000 to in excess of $1 million. Of course, the higher the limit, the higher the premium. While obtaining SUM coverage may add to your premium, it will keep you from becoming that not so perfect Paul.

Lever & Stolzenberg, LLP is located in White Plains, New York and serves clients throughout the state, including New York City's five boroughs (The Bronx, Brooklyn, Queens, Manhattan and Staten Island) as well as Westchester County, Rockland County and Long Island. 

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