Understanding Uninsured and Underinsured Motorist Coverage for New York Drivers

When it comes to car insurance in New York, many drivers focus on liability, collision, or comprehensive coverage, but one critical protection often overlooked is uninsured and underinsured motorist coverage (UM/UIM). This type of insurance safeguards you if you're involved in an accident with a driver who either doesn’t have insurance or lacks enough coverage to pay for damages.

What Is Uninsured and Underinsured Motorist Coverage?

Uninsured motorist coverage protects you if you get into an accident where the at-fault driver has no insurance at all. Underinsured motorist coverage, on the other hand, applies when the at-fault driver has insurance, but their policy limits are too low to cover your medical bills, car repairs, or other losses.

In New York, despite laws requiring drivers to carry insurance, some still drive without it. According to New York State Department of Motor Vehicles, uninsured drivers exist due to lapses in coverage, financial constraints, or intentional non-compliance. That’s why UM/UIM coverage offers an important safety net for NY drivers.

Is Uninsured and Underinsured Motorist Coverage Mandatory in New York?

New York law requires all drivers to carry uninsured motorist coverage in the same amount as their liability limits. This means if you have minimum liability coverage of $25,000 per person and $50,000 per accident, your uninsured motorist coverage must match those limits.

Underinsured motorist coverage is not automatically included but is typically offered as an option by insurers. Opting for this coverage is highly recommended to avoid significant out-of-pocket expenses when the at-fault party’s insurance falls short.

Why New York Drivers Need UM/UIM Coverage

• Protection from uninsured drivers: Despite strict state regulations, uninsured drivers remain a reality on New York roads. UM coverage ensures you’re not stuck paying for injuries or repairs caused by their negligence.
• Safeguards against underinsured motorists: Many drivers carry only the minimum required coverage, which may be insufficient when serious injuries or major vehicle damage occur. UIM coverage fills this gap.
• Covers medical bills, lost wages, and more: UM/UIM insurance helps cover expenses beyond vehicle damage, including medical treatments, rehabilitation, and income lost due to injury.
• Peace of mind: Knowing you have protection regardless of the other driver's insurance status adds security to your driving experience.

How UM/UIM Coverage Works in New York

If you’re in an accident caused by an uninsured or underinsured motorist, you’ll typically file a claim with your own insurance company under your UM/UIM coverage. Here are the basic steps:

1. Report the accident: Notify your insurer right away and provide details including the other driver’s information and police report if available.
2. Damage and medical evaluation: Your insurer may request documentation of the damages and medical expenses incurred.
3. Claim assessment: Your insurance company evaluates the claim and determines the payout based on your coverage limits and the other driver’s insurance status.
4. Settlement: Once approved, your insurer pays for covered damages or injuries up to your policy limits.

Note that UM/UIM coverage typically does not cover property damage unless you have specific uninsured motorist property damage (UMPD) coverage.

Tips for Choosing the Right UM/UIM Coverage Limits

While New York mandates uninsured motorist coverage at liability levels, many drivers choose to purchase higher limits for better protection. Consider the following factors when selecting your UM/UIM limits:

• Evaluate your assets and financial risk: Higher coverage limits help protect your savings and future earnings in case of a severe accident.
• Consider your health insurance: If you have limited health insurance, UM/UIM can be especially valuable to cover medical costs.
• Review your vehicle’s value: For newer or expensive vehicles, higher coverage can help cover repair or replacement costs more fully.
• Compare premium costs: Increasing UM/UIM limits may result in a modest premium increase but provide significant added protection.

Common Questions About UM/UIM Coverage in New York

Does UM/UIM coverage apply to hit-and-run accidents?

Yes. New York’s uninsured motorist coverage typically covers injuries and damages caused by hit-and-run drivers if the driver cannot be identified.

Can I reject UM/UIM coverage in writing to reduce my premium?

New York requires uninsured motorist coverage by law, so you cannot reject it entirely. However, you might have options around underinsured motorist coverage, depending on your insurer.

How does UM/UIM coverage work with no-fault insurance in NY?

New York’s no-fault system requires drivers to file claims first with their own personal injury protection (PIP). UM/UIM coverage kicks in after PIP benefits are exhausted or if damages exceed no-fault limits.

Conclusion

Uninsured and underinsured motorist coverage plays a vital role in protecting New York drivers against financial losses from accidents involving inadequately insured or uninsured motorists. New York drivers must carry uninsured motorist coverage by law, making it an essential part of your car insurance policy. Considering the risks on the road and the potential costs involved, carefully evaluating your UM and UIM coverage limits can provide peace of mind and ensure adequate protection for you and your family.

When shopping for car insurance in New York, always confirm your policy includes these coverages and understand how they work to shield you from costly surprises after an accident.