Despite strict laws requiring auto insurance, many drivers still hit the road without it. According to the Insurance Information Institute (III), an estimated 10.8% of New York drivers were uninsured in 2022. Nationally, the rate is even higher, with an estimated 15.4% of motorists uninsured in 2023. This represents a real financial risk to every insured driver. If you’re involved in a crash with an uninsured driver, you could face massive medical bills and lost wages through no fault of your own. This is where New York’s mandatory uninsured motorist coverage becomes a much-needed safety net. In order to best protect you and your family from unnecessary financial strain, thoroughly understanding your coverage options is vital.
Understanding New York’s Mandatory Insurance
New York is a “no-fault” insurance state. This means your own insurance company, through Personal Injury Protection (PIP) coverage, generally pays for your initial medical expenses and lost wages after a collision, regardless of who was at fault. All New York drivers are required to carry a minimum of $50,000 in PIP coverage. However, PIP has its limits. It does not cover damage to your vehicle or compensate for pain and suffering. If your medical bills and economic losses exceed the PIP limits, or if you wish to sue for pain and suffering, you typically pursue a claim against the at-fault driver’s insurance.The real problem arises when the responsible driver is uninsured, meaning they have no liability coverage. This gap can leave you financially vulnerable, which mandatory uninsured motorist coverage (UM) is designed to address.
The Role of Uninsured Motorist Coverage
New York law requires all drivers to carry UM bodily injury coverage with minimum limits of $25,000 per person and $50,000 per accident. This coverage activates when the responsible driver has no insurance. This also applies to hit-and-run collisions where the driver cannot be identified.
UM coverage can help cover:
- Medical expenses that exceed your PIP limits
- Lost wages beyond your initial no-fault benefits
- Compensation for pain and suffering (if injuries meet the state’s serious injury threshold)
While this mandatory coverage offers a basic level of protection, serious injuries can result in expenses that quickly exceed minimum limits. A single hospital stay or a complex surgery alone can easily cost more than the state will cover. Relying solely on basic coverage is a significant gamble, which is why additional coverage is so important.
Supplementary Coverage: Going Beyond The Minimums
Supplementary Uninsured/Underinsured Motorist (SUM) coverage is an optional add-on to your policy that provides protection beyond the basic UM limits. It also steps in when the at-fault driver is “underinsured,” meaning they have insurance, but their policy limits are too low to cover all your damages.
Insurers allow you to purchase SUM coverage with limits that match your own limits for bodily injury liability, such as $100,000 per person and $300,000 per accident. This extra layer of protection can mean the difference between compensation and financial strain.
Furthermore, while basic UM coverage only applies to crashes within New York state, most SUM policies protect you anywhere in the U.S., its territories, and Canada.
What To Do After A Crash With an Uninsured Motorist
If you are involved in a collision with an uninsured or underinsured driver, the steps you take immediately following the crash are critical:
- Seek Medical Attention: Your health is always the top priority.
- Contact Police: A police report is essential, especially for hit-and-run incidents, to prove that contact occurred.
- Gather Information: Collect contact and vehicle information from the other driver (if available) and any witnesses.
- Notify Your Insurer: You must provide prompt written notice to your own insurance carrier about your intent to file an uninsured motorist coverage or SUM claim.
Navigating these claims can be complex. Insurance companies may try to minimize or deny valid claims, even from their own policyholders. Having a knowledgeable legal advocate is vital to ensure your rights are protected and you receive the full compensation you deserve.
Secure Your Financial Future Today With Matera & Manley, LLP
If you’ve been in an accident with an uninsured driver, the attorneys at Matera & Manley, LLP, can help. Schedule a free consultation with our firm today to protect your rights and secure the compensation you deserve.
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