Did you know that you have a powerful, cheap type of car insurance coverage available to you – that you are probably not using? That is supplemental uninsured coverage or “SUM” coverage. This coverage on your insurance policy insures you against other drivers who have minimal coverage, and it works like this – Let’s say you are hit in the back by a driver who has the minimal amount of liability coverage permitted by law in New York State, $25,000.00. And suppose that you are hurt enough that the value of your injuries would normally be $100,000.00. In the normal case you would be stuck recovering only $25,000.00 from the insurance company for the owner of the car that struck you – leaving you to suffer with the other $75,000.00 worth of injuries and no further recovery.
However, if you had already taken $100,000.00 worth of “SUM” coverage from your insurance company on your car, then you would be entitled to recover the $25,000.00 from the other car’s insurance, and then turn around and proceed with a “SUM” claim against your own insurance company for the other $75,000.00. Even better your own insurance company cannot raise your premiums because they pay you under the “SUM” coverage, since it is only when you are “at fault” in an accident can they raise your premiums based upon a claim.
It is required to have at least the same amount of liability coverage on your own policy as “SUM” coverage, however the little known fact about it is that “SUM” coverage is extremely economical and barely raises your premium rates. It’s the secret coverage they don’t want you to know about, and the coverage you should make sure you do !!