SUM Insurance Coverage – What Is It and Why Do I Need It?

SUM coverage stands for Supplemental Underinsured Motorist coverage. Its partner is UM insurance coverage, which stands for Uninsured Motorist coverage. In 1993, the New York State Insurance Department prepared a prescribed policy form for Supplementary Uninsured Motorist coverage.

In today’s day and age, a person must do what they can to protect themselves with regard to insurance coverages. Therefore, much consideration should be given to your own policy to make sure that you have sufficient coverages under this part of your automobile insurance policy. The SUM indorsement in your insurance policy will provide coverage for you and a member of your household up to the limits purchased by you, provided that the person who is at fault in the accident either does not have insurance, or has liability limits which are less than your SUM coverage limits.

The SUM coverage or UM coverage of your insurance policy may be triggered if one of the following occurs: an at fault motor vehicle is not covered by a liability policy, you are the victim of a hit and run motor vehicle incident, the insurer of the at fault motor vehicle denies coverage or becomes insolvent, or the at-fault motor vehicle is underinsured with regard to your personal injury damages.

Generally, the SUM/UM coverage on the insurance policy is a writer to the insurance policy for any amount above the mandatory minimum. As such, it is very important to review your policy of insurance to be sure that you are insuring yourself and your family sufficiently in case you are involved in an accident and the at fault party is either uninsured or does not have sufficient insurance.

You should consult your insurance professional to ensure that you have sufficient coverage to protect yourself and your family. Furthermore, you may contact my office to review your automobile coverage and set forth an explanation with regard to the SUM and UM insurance coverages and the impact it may have upon you in case of an accident.