Car Accidents -- Supplementary Uninsured/Underinsured Motorist Benefits. WATCH OUT!

I have written before on the subject of SUM coverage that is a type of car insurance coverage that is absolutely necessary in today's economic climate.  For the benefit of your family and yourself, if you do not have SUM, (supplementary  uninsured/underinsured motorist benefits), get it! 

We all know that in New York, and most other states, it is mandatory, (and as a matter of fact, punishable by a criminal sanction), to have your vehicle covered with an automobile liability coverage.  One of the reasons for that mandate is to cover the owner and operator of a vehicle if they should operate the vehicle carelessly and cause someone damage.  That car insurance policy that you purchased will then protect you from losing your home or other valuables should you get sued because you hurt someone while operating your vehicles.  So, in New York State, and most other places, when you are driving around, we all have the security knowing that if someone makes a mistake and drives carelessly causing an accident, you can bring a claim and get money damages for the injury that the careless driver caused.  So far, so good...

In early January 2013, I met with a very fine young man.  He had been operating a vehicle in Massena, NY, and his lane was cut off by a very, very careless driver.  My client suffered badly, with a fractured shoulder, his left leg was fractured so severely that the bone was sticking out of the skin and his right leg was fractured as well.  Both legs had to be operated on.  He was in the hospital for about one and a half months.

The other driver -- the "bad guy" -- had a car insurance company -- Progressive Insurance Company.  So far, so good.  But his policy was not "good" enough.  The careless driver's policy under progressive had the mandatory policy to cover for injuries.  But the policy limit that the careless driver purchased was the minimum limit, $25,000.  Most lawyers, and most people, would know that my client's injuries are way, way, way above that $25,000 limit.  So, what does he do?

What he did do was purchase a SUM -- supplementary uninsured/underinsured motorist policy.  Remember, this is not mandatory.  You have to ask your agent to buy this type of coverage.  What does it do?

SUM coverage:

This means that if the person who causes a automobile accidentt is uninsured, that is, has NO INSURANCE,  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, (has less coverage that you purchased on your car), there may be additional coverage available up to the amount of your policy limits on your car.

Underinsurance coverage provides to you and your family coverage up to the amount you purchase. In other words, any coverage the at-fault party is increased up to the amount of coverage you purchased.

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, (giving you a total of the $100,000 that you purchased) giving you an amount 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 in case of an accident.

Now, back to my story.

In my client's case, Progressive Insurance company sent my client a letter telling him that their careless driver that they insured had only $25,000.  They offered it immediately to him and told him to go ahead and sign the release document and they would send him a check.  Here is where my client, Nick, made the right choice:  HE CALLED ME!  If Nick signed the release and sent it along to Progressive he would have forfeited his right to make any claim on the SUM coverage.  Why?  Because his SUM coverage REQUIRES Nick to ask the SUM insurance company permission to settle for the $25,000.  So, if Nick had listened to Progressive and not spoken to us, it would have been the end of that and Nick would have been out of luck and would have received none of the extra SUM coverage to which he was entitled.

Time and time again, over my almost thirty years of practice, I have heard some people say, "don't call a lawyer, they'll only screw you."  I am proud to work with the professionals with whom I work here at my office.  Because of Nick's injuries, and because of the limited coverage, (his SUM was only $50,000), we didn't charge Nick or his family any fee.  But we worked the file for him and for his mother and father because they were nice people who were about to be taken advantage of by people who really don't care about him and just care about the money.  Call me Santa Joe.

Happy New Year!!