When the Other Driver Has No Insurance: Your Guide to UM and UIM Coverage in New York
- Reza Yassi
- May 22
- 7 min read
Updated: May 26
By a New York Personal Injury Attorney
Picture this: You're driving through Queens on a rainy afternoon, carefully navigating the crowded streets when—CRASH—a car slams into yours at an intersection. As the shock wears off and you begin to feel the pain in your neck and back, the other driver sheepishly admits they don't have insurance. Or maybe they have insurance, but only the bare minimum that won't begin to cover your mounting medical bills and lost wages.
If you're thinking, "that would never happen to me," think again. According to recent data from the Insurance Research Council, approximately 14% of motorists nationwide were driving without insurance in 2022, and in New York, even with our strict insurance requirements, about 6.1% of drivers are uninsured.
This is where understanding Uninsured Motorist (UM) and Supplementary Uninsured/Underinsured Motorist (SUM) coverage becomes your financial lifeline.
What Exactly Is UM/UIM (SUM) Coverage?
Let me break this down in simple terms:
Uninsured Motorist (UM) coverage is built into every single auto insurance policy in New York—it's not optional. This coverage protects you and your passengers if you're injured by a driver who has absolutely no insurance, is driving a stolen vehicle, or hits you and flees the scene (a hit-and-run).
Supplementary Uninsured/Underinsured Motorist (SUM) coverage—New York's term for UIM coverage—steps in when the at-fault driver has insurance, but their policy limits are too low to fully compensate you. Think of it as a safety net for when the other driver's coverage falls short.
For example, if you suffer $100,000 in damages but the driver who hit you only carries the state minimum $25,000 per person coverage, your SUM coverage can pay the remaining $75,000—up to your policy limits.
How UM/UIM Coverage Evolved in New York: A Brief History
New York's journey with these protections has evolved significantly over the decades:
1958: New York became a pioneer, making UM coverage mandatory in all auto liability policies (N.Y. Insurance Law § 3420(f)(1)).
1977: SUM coverage was introduced as an optional add-on available for purchase (N.Y. Insurance Law § 3420(f)(2)).
June 18, 2018: A game-changing reform took effect: all new or renewed auto policies in New York now automatically include SUM coverage equal to your liability limits, unless you specifically decline or choose lower limits in writing (NY Insurance Law § 3420(f)(2-A)). This means if you carry $100,000/$300,000 liability coverage, your SUM is now automatically $100,000/$300,000 by default.
This latest change is particularly significant because it offers New Yorkers substantially better protection without requiring them to actively seek it out. Previously, many drivers were unaware they could or should purchase higher SUM limits.
Real-World Impact: Why This Coverage Matters
Consider Maria's story: She was T-boned by a driver who ran a red light in Brooklyn. Her injuries required surgery and months of physical therapy, resulting in $85,000 in medical bills and lost wages. The at-fault driver had only the minimum $25,000 in coverage. Without SUM coverage, Maria would have been personally responsible for the remaining $60,000. Fortunately, her SUM coverage with limits of $100,000 covered the gap.
Or take James, who was struck while crossing the street by a hit-and-run driver. With no at-fault driver to pursue, his UM coverage was the only option for recovering his $30,000 in medical expenses and lost income.
These aren't hypothetical situations—they're the kind of cases that come across my desk regularly.
Recent Legal Developments and Regulatory Changes
Beyond the 2018 "Automatic SUM" law, several other developments have shaped how these coverages function:
DFS Regulation 35-D (11 NYCRR 60-2) provides detailed clarification of your rights and the claims process.
Recent court decisions like Smith v. Great American Insurance Co. have established that UM coverage applies only when there is physical contact in hit-and-run scenarios.
In Travelers Indemnity Co. v. Panther, the court allowed a UM claim to proceed despite lack of physical contact because the uninsured driver was identified.
Arbitration decisions through the American Arbitration Association (AAA), which administers the SUM Arbitration Program on behalf of the NY Department of Financial Services, continue to shape how these claims are handled and valued.
The Claims Process: A Step-by-Step Guide to Getting Paid
If you're injured in an accident and discover the other driver is uninsured or underinsured, follow these steps to protect your rights and maximize your recovery:
Step 1: Notify Your Insurance Company Immediately
Don't delay—written notice should be given "as soon as practicable," ideally within 30 days of the accident or when you first learn that the other driver lacks adequate insurance.
I've seen valid claims denied because clients waited too long to notify their insurer. In In re Brandon (97 N.Y.2d 491, 2002), the New York Court of Appeals upheld an insurer's denial based on late notice.
Step 2: Gather and Preserve Evidence
Collect:
Police Accident Report (MV-104A)
All medical records and bills
Documentation of lost wages
Photos of the accident scene and vehicle damage
Insurance information for all involved parties
Witness statements
The more thoroughly you document your case, the stronger your position.
Step 3: Request "Consent to Settle" (for SUM/UIM claims)
This step is critically important but often overlooked. If the at-fault driver's insurer offers their policy limits, you must get your own insurer's written consent before accepting that settlement. Failure to do so could jeopardize your right to SUM benefits.
Your carrier has the right to evaluate whether the settlement offer truly exhausts the other driver's coverage and whether they want to preserve their subrogation rights against the at-fault driver.
Step 4: Prove Exhaustion of the Other Driver's Coverage
You'll need to provide proof—typically a copy of the settlement check and release—showing you've collected the maximum available from the at-fault driver's insurance.
Step 5: Submit Your UM/SUM Claim
After the above steps are complete, submit a formal claim to your carrier with all supporting documentation of your injuries and damages.
Step 6: Consider Arbitration or Litigation
If your insurer disputes your claim or offers an inadequate settlement, you have options:
For UM claims, either you or your insurer can demand arbitration
For SUM claims where your coverage exceeds the statutory minimum, only you (the insured) can demand arbitration
You may also have the option to litigate rather than arbitrate
The American Arbitration Association (AAA) administers SUM arbitrations in New York, with hearing sites throughout the state.
Sample Notification Letter Template
A template like this could be used to notify your insurer of a potential UM/SUM claim:
Dear Claims Representative:
Please consider this letter formal written notice of my potential claim for Uninsured/Underinsured Motorist benefits under my automobile policy referenced above.
On [date], I was involved in a motor vehicle accident at [location]. The driver who caused the accident, [other driver's name if known], [has no insurance/has insufficient insurance limits] to fully compensate me for my injuries and damages.
[Include brief description of accident and injuries]
Enclosed please find:
1. Copy of the Police Accident Report
2. Copy of other driver's insurance information (if available)
3. Initial medical records
Please acknowledge receipt of this notice, assign a claim number, and provide the name and contact information of the adjuster who will be handling this matter.
Nothing in this letter should be construed as a waiver of any of my rights under my insurance policy or applicable law.
Common Questions About UM/UIM Coverage
Q: Will filing a UM/UIM claim raise my insurance premiums?
A: New York regulations prohibit insurance companies from surcharging or non-renewing your policy solely because you filed a UM/UIM claim when you weren't at fault. This consumer protection encourages drivers to use the coverage they've paid for without fear of penalty.
Q: How long do I have to file a UM/UIM claim?
Q: How much SUM coverage should I carry?
Q: Can I stack coverage from multiple policies?
Q: If I'm injured while riding as a passenger, whose insurance applies?
Q: What if I'm hit while riding a bicycle or as a pedestrian?
The Bottom Line: Be Proactive About Your Coverage
Don't wait until after an accident to discover you have inadequate protection. Take these steps today:
Check your policy declarations page to verify your current SUM limits
Consider increasing your SUM coverage to match your liability limits if they're not already equal
Understand your policy's notification requirements so you're prepared if an accident occurs
Keep a copy of your insurance card and contact information readily accessible
Remember, the decision to save a few dollars on premiums by reducing your SUM coverage could cost you tens or even hundreds of thousands of dollars if you're seriously injured by an uninsured or underinsured driver.
As a personal injury attorney who has helped countless New Yorkers navigate these claims, I've seen firsthand how proper UM/UIM coverage can be the difference between financial security and devastating debt after a serious accident.
Disclaimer:
This article provides general information about UM/UIM coverage in New York and should not be considered legal advice. If you've been injured in an accident involving an uninsured or underinsured driver, consult with a qualified attorney who can provide guidance specific to your situation.
