Uninsured and Underinsured Motorist Coverage in a New York Car Accident Claim
Car accidents can be traumatic, life-altering events, and the financial consequences that follow can be just as devastating. While liability insurance is required for all drivers in New York, not every motorist on the road follows the law. Some drivers fail to carry any insurance at all, while others carry only the minimum amount required, which may be insufficient to cover the full extent of damages in a serious crash. This is where uninsured and underinsured motorist coverage comes into play. Understanding these types of insurance and how they work in New York is essential for protecting yourself and your family from the unexpected.
Although uninsured motorist insurance is there to protect you, pursuing a UM claim is not always something you should do without a lawyer. You still risk being turned away or offered less than your claim is worth just as if you had a liability claim against an insured driver. For help with an uninsured or underinsured motorist claim in Orange County or the Hudson Valley, contact Dupée & Monroe, P.C., to speak with an experienced and successful Goshen car accident lawyer.
Uninsured Motorist Requirements
New York requires all standard auto liability policies to include Uninsured Motorist (UM) coverage. This mandatory protection compensates you and your covered passengers if injured by a driver who lacks insurance or flees the scene. By law, the minimum UM limits must match the state’s basic liability requirements – namely $25,000 per person and $50,000 per accident for bodily injury, and $50,000 per person and $100,000 per accident for death. UM coverage applies only to bodily injury (medical bills, lost wages, pain and suffering after a serious injury) and not to vehicle damage or other property. It covers accidents occurring in New York State, although you can add an endorsement to extend UM protection to out-of-state accidents.
Who Is Protected?
UM benefits follow the insured person, not just the car. In an accident caused by an uninsured driver or hit-and-run driver, UM coverage applies to you, your household family members, and passengers in your car. It even protects you as a pedestrian or bicyclist hit by an uninsured motorist. If you do not own a car, you can “step into the shoes” of a household relative’s policy. For example, if you live with someone who has auto insurance, you may claim under their UM coverage if injured as a pedestrian or passenger. In short, New York’s UM coverage ensures that covered persons can recover for their injuries when the at-fault driver is uninsured. This reflects NY’s public policy: every driver should be protected against financially irresponsible parties.
Coverage Details and Limits
The policy provision found in New York Insurance Law 3420(f)(1) requires insurers to pay up to the stated limits on “all sums… which the insured… shall be entitled to recover as damages from… an uninsured motor vehicle, unidentified motor vehicle… or an insured motor vehicle where the insurer denies coverage.” In practice, that means your insurer steps in to pay your damages up to $25,000 (injury) or $50,000 (death) for one person, and up to $50,000 per person (injury) or $100,000 per accident (death) when multiple people are injured. Importantly, NY law bars payment of any non-economic damages (like pain and suffering) under UM unless the victim suffered a “serious injury” as defined in New York Insurance Law 5102(d).
How UM Claims Work
If you or your passengers are hurt in an accident caused by an uninsured or hit-and-run driver, you should promptly notify your insurer and file a UM claim. The insurer will review your policy and the facts to pay benefits under UM, up to your policy’s limits. For example, the insurer may require evidence of the other driver’s uninsured status and medical documentation of your injuries. If you have other valid insurance (e.g. health or PIP), you still claim UM for amounts exceeding those coverages. If the at-fault driver is unknown (hit-and-run) or truly uninsured, your insurer must treat it as a UM claim.
If you have no applicable policy (for instance, if you were a pedestrian injured by an uninsured driver and no household policy covers you), New York provides a safety net: you can file a claim with the Motor Vehicle Accident Indemnification Corporation (MVAIC). MVAIC is a state-run fund that steps in to compensate victims of uninsured or untraceable drivers in NY. The law requires victims to report the accident to the police and then file with MVAIC promptly to meet strict deadlines. Through MVAIC (or your own insurer if covered), the injured can recover at least up to the mandatory UM limits even when the at-fault driver has nothing.
Underinsured Motorist (UIM) Coverage
Underinsured Motorist coverage steps in when the at-fault driver has some insurance, but not enough to cover your losses. For example, if the other driver carries only the state-minimum $25,000/$50,000 liability and you suffer $75,000 in damages, UIM can pay the $50,000 shortfall (subject to your own UIM limit). In other words, UIM protects you when another driver’s coverage limits are insufficient.
Unlike UM (which is required by law), UIM protection in New York is not mandatory; it is offered as part of optional coverage. New York Insurance Law requires insurers to offer UIM (in practice through a “supplementary” endorsement known as SUM), but the insured may decline it. If purchased, UIM limits typically mirror your liability limits. Many policies bundle UM and UIM together in one endorsement. Notably, UIM coverage also pays only for bodily injury (no property damage) and only applies in New York unless separately extended out-of-state.
Claims under UIM
To recover under UIM, you must first obtain whatever payment the at-fault driver’s insurer provides. Only when that liability is “exhausted” (fully paid out) will your UIM carrier pay additional amounts up to your UIM limit. New York law expressly requires that UIM (and SUM) benefits be paid only after all underlying liability limits have been used by payment of judgments or settlements. For instance, if the other driver’s $25,000 liability is paid in full and your damages exceed that amount, you file a UIM claim for the remaining gap. If you and the at-fault driver settle for their policy limit, your insurer will subtract that from your damages and pay up to your UIM coverage maximum. Note that, as with UM, there is a serious injury threshold: no pain and suffering is paid under UIM unless you meet the statutory definition of serious injury.
Since UIM is optional, you are free to accept or reject it. The insurer must offer it (typically at the same or higher limits than the mandatory UM), but you can sign a written waiver to decline or lower UIM/SUM coverage. Most drivers carry at least the mandatory UM, but many forego UIM or carry only $25,000 limits – which can be insufficient in a serious accident. It’s wise to consult an agent or attorney, as declining UIM means you bear more risk if the at-fault driver’s insurance is inadequate.
Why You Need a Lawyer for a UM/UIM Claim
Filing a claim under your UM or SUM policy can be complex. While the claim is made through your own insurance company, the process is adversarial—similar to filing a claim against another driver’s insurer. Your insurer may dispute the severity of your injuries, the amount of damages, or whether the coverage applies at all. You may be required to prove that the other driver was at fault and that their insurance was insufficient or nonexistent. As such, having experienced legal representation can make a significant difference in your ability to recover fair compensation.
Additionally, there are strict timelines for filing a UM or SUM claim in New York. In most cases, you must notify your insurance carrier as soon as possible after the accident—often within 30 days. Failure to meet this deadline can result in a denial of your claim, regardless of its merits. The sooner you consult with an attorney, the better your chances of preserving your rights and presenting a strong case.
Another consideration is the coordination of benefits. If you receive compensation from other sources, such as workers’ compensation or personal health insurance, your UM/UIM benefits may be offset or reduced. Understanding how these various forms of insurance interact can be challenging, and missteps can lead to reduced compensation or legal complications. Again, having an attorney involved early in the process is often critical.
Contact Dupée & Monroe in Goshen for Help With Hudson Valley Car Accident Claims
When reviewing your auto insurance policy, it is a good idea to consider increasing your UM/UIM coverage limits. Although higher limits come with higher premiums, the added cost is typically small compared to the protection it offers in the event of a serious accident. Many drivers are unaware of what their policies actually cover until they are injured and facing thousands of dollars in medical bills and lost income. Reviewing and updating your policy proactively can help ensure that you are adequately protected.
If you or a loved one has been injured by an uninsured or underinsured driver, don’t wait to seek legal guidance. Insurance companies have teams of adjusters and attorneys working to minimize payouts. You deserve someone in your corner who knows how to fight back. For residents of Orange County and the greater Hudson Valley area, the Goshen personal injury attorneys at Dupée & Monroe, P.C. have extensive experience helping accident victims build strong cases and recover the compensation they need to move forward with their lives.
Contact Dupée & Monroe, P.C. today for a free consultation, and let us help you protect your rights and secure the compensation you deserve.
