Uninsured and Underinsured Motorist Coverage in New York: UM, UIM, and SUM Explained
New York requires uninsured motorist coverage and automatically includes SUM (Supplementary Uninsured/Underinsured Motorist) in every policy since 2018. Here is how these coverages work together with no-fault PIP and why you should not opt down from SUM.
The Uninsured Driver Problem in New York
Statewide uninsured rate
6.1%
Despite strict DMV verification
NYC uninsured rate
~9%
Higher than state average
Required UM minimum
25/50
Must match BI liability limits
Approximately 6.1% of NY drivers are uninsured despite the state's real-time electronic verification system. In NYC, the rate is closer to 9% - meaning roughly 1 in 11 drivers you encounter on city streets has no insurance. If one of these drivers causes an accident and injures you, your own UM/SUM coverage is what protects you.
How UM/UIM Works in NY's No-Fault System
NY's no-fault system means PIP pays your medical bills first - regardless of who caused the accident. UM coverage handles what PIP does not cover: damages above your $50,000 PIP limit, pain and suffering (if you meet the serious injury threshold), and claims against uninsured at-fault drivers.
Claims Payment Order After an Accident with Uninsured Driver
Your PIP pays first
Pays your medical bills up to $50,000 regardless of fault
If injuries exceed $50K or meet serious injury threshold
File UM claim with your own insurer for excess damages and pain/suffering
UM coverage pays up to your UM limits
Minimum 25/50. If you have 100/300 UM, you are covered up to those limits
SUM coverage fills any remaining gap
If at-fault driver had minimum insurance that was inadequate, SUM pays the gap
SUM Coverage: NY's Unique Supplementary Protection
SUM = Supplementary Uninsured/Underinsured Motorist Coverage. Since 2018, NY Insurance Law Section 3420(f)(2)(A) requires that SUM coverage be automatically included in every NY auto policy up to your BI liability limits. SUM activates when an at-fault driver's insurance is not enough to cover your actual damages.
SUM is different from standard UIM (Underinsured Motorist) coverage in other states. Standard UIM only pays if the at-fault driver's limits are lower than your UIM limits. NY's SUM pays the actual dollar gap between the at-fault driver's payout and your actual proven damages, up to your SUM limits.
SUM Calculation Example
The Scenario
- At-fault driver has minimum 25/50 BI liability
- Your injuries and damages total $100,000
- You meet the serious injury threshold
- You have 100/300 SUM coverage
How It Pays
- At-fault driver's 25/50 pays: $25,000
- Your PIP pays medical: up to $50,000
- SUM covers the gap: remaining damages
- Without SUM 100/300: $75,000 uncovered
With 100/300 SUM: Your SUM coverage pays up to $100,000 per person / $300,000 per accident above what the at-fault driver's policy paid. This is why upgrading SUM is one of the most cost-effective moves in NY insurance.
Why You Should NOT Opt Out of SUM
NY law allows you to sign a waiver to reduce your SUM limits below your BI liability limits. This is almost always a mistake. With 9% of NYC drivers uninsured and many more underinsured with minimum 25/50 policies, waiving SUM to save $50-$100/year leaves you exposed to potentially hundreds of thousands of dollars in unrecoverable damages.
The cost to upgrade from minimum SUM (25/50) to robust SUM (100/300) is typically only $50-$150/year. This is among the best values in NY car insurance. The math is clear: $50-$150/year in extra premium vs. potential $100,000+ gap in coverage after a serious accident with an underinsured driver.
Cost to Upgrade UM/SUM in New York
| Coverage Level | Annual Cost (NYC) | Max Per-Person | Recommendation |
|---|---|---|---|
| UM/SUM 25/50 (minimum) | Included in base | $25,000 | Inadequate for most NY situations |
| UM/SUM 50/100 | +$30-$60/yr | $50,000 | Minimum viable for most drivers |
| UM/SUM 100/300 | +$50-$150/yr over min | $100,000 | Recommended for most NY drivers |
| UM/SUM 250/500 | +$100-$250/yr over min | $250,000 | Best protection - worth it if budget allows |