Underinsurance coverage, or what is commonly known as “UM” and “SUM” coverage, (Uninsured Motorist and Supplementary Underinsured Motorist) and is an often vital aspect of automobile insurance coverage which many drivers are unfamiliar with. Underinsured Motorist (UM) claims come into play when a person is the victim of a hit and run vehicle that cannot be identified or when a vehicle that is not insured causes an accident and causes someone else personal injuries. Since the injured party cannot purse a claim against an unknown vehicle or pursue a claim against the insurance company of an uninsured motor vehicle, the injured party may pursue a claim against his or her own insurance company up to the limits of the person’s own Underinsured (UM) policy limits. Supplementary Underinsured Motor vehicle (SUM) comes into play when a driver or passenger in a car is injured in an accident through the negligence of another vehicle, which is inadequately insured, or “underinsured.” For example, if the liability limits of the wrongdoer’s car are less than the SUM limits of the injured person’s vehicle, an underinsurance claim can be pursued. For example, if you own and operate a vehicle that is impacted by an underinsured motor vehicle with policy limits of only $25,000, and you sustain personal injuries including a broken arm, and your own SUM limits are $100,000, you must first have the offending vehicle tender (offer the entire policy) the full $25,000, get your own insurance companies written permission to settle, as well as timely make a claim for SUM against your own insurance company, and then pursue a SUM claim against your own insurance company. In this scenario, the available insurance limits are not $125,000, but are only $100,000. You do not add the offending vehicle’s insurance together with your own SUM. Your insurance company is entitled to an off-set, so if you have the other vehicle tender the full $25,000, your own available SUM would be $75,000 in this example. We have helped many clients pursue UM and SUM claims and advocate for them every step of the way. While many people fear pursuing a claim against their own insurance company, we urge people to do so when there is a viable claim. We explain that it is analogous to health insurance. You pay for health insurance and do not usually hesitate to use it when you are sick or need it, nor should you. Similarly, with car insurance, and particularly UM and SUM benefits, you should freely pursue your entitlement to these claims and we hope you will contact us to assist you and represent you every step of the way. |