New York Insurance Education

Uninsured and Underinsured Motorist Coverage

Being hit by an uninsured driver is more common than most people realize. In New York, a significant percentage of drivers carry no liability insurance despite legal requirements. Uninsured and underinsured motorist coverage steps into the at-fault driver's shoes and pays what that driver would have owed.

01

UM vs. UIM — The Difference

Uninsured motorist (UM) coverage applies when the at-fault driver has no insurance at all, when the at-fault driver leaves the scene (hit-and-run), or when the vehicle is stolen. Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their limits are insufficient to fully compensate your losses.

02

What UM/UIM Covers

UM/UIM coverage pays for bodily injury damages including medical bills, lost wages, pain and suffering, and other compensatory damages that the at-fault driver would have owed. Some policies also include uninsured motorist property damage (UMPD) to cover vehicle damage. Coverage is subject to your policy limits.

03

Stacking Coverage

Some states allow stacking — combining the UM/UIM limits from multiple vehicles on your policy or multiple policies in your household. Stacked coverage can significantly increase the maximum available recovery. Understanding whether stacking is available in New York can materially affect the coverage analysis after a serious accident.

04

Avoiding Common Mistakes

Common UM/UIM mistakes: failing to report the accident to your own insurer promptly; settling with the at-fault driver without your insurer's consent (this can void your UIM claim); assuming UM/UIM is automatic when it must be purchased; and accepting a low UM/UIM limit thinking it will never be needed.

New York-Specific Facts

What New York Policyholders Need to Know

  • New York requires UM coverage (NY Ins. Law §3420)
  • SUM (Supplementary Uninsured/Underinsured Motorist) coverage is the New York standard
  • SUM limits can be purchased up to your liability limits
  • Stacking is limited in New York — anti-stacking provisions are enforceable
  • Consent to settle is typically required before settling with the at-fault driver on a UIM claim
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Regulatory resource: New York Department of Financial Serviceshttps://www.dfs.ny.gov. The Insurance Professor provides education only — not legal or insurance advice.

Uninsured and Underinsured Motorist Coverage — Other States