Understanding Uninsured Motorist Coverage in New York

What Is Uninsured Motorist Coverage?
Uninsured Motorist (UM) coverage protects you if you’re injured in a car accident caused by a driver with no auto insurance. Underinsured Motorist (UIM) coverage applies when the at-fault driver’s liability limits are too low to cover your medical bills, lost wages, or pain and suffering. Unlike liability insurance, which pays for damages you cause others, UM/UIM is designed to safeguard you and your passengers from financial hardship when another motorist lacks adequate coverage.

New York’s UM Coverage Requirements
New York mandates that all auto insurance policies include UM and UIM coverage for bodily injury unless explicitly rejected in writing. The minimum required limits match New York’s liability insurance requirements:

• $25,000 per person for injuries
• $50,000 per accident if multiple people are hurt

These minimums are often insufficient for serious accidents, prompting many drivers to purchase higher limits. Notably, UM/UIM in New York does not cover property damage to your vehicle—this falls under collision coverage.

UM vs. UIM: Key Differences and Applications

• Uninsured Motorist (UM): Covers bodily injury if the at-fault driver has no insurance. For example, if a driver hits you and flees (hit-and-run), UM typically applies.
• Underinsured Motorist (UIM): Activates when the at-fault driver’s insurance limits are exhausted. If their policy covers only $30,000 of your $50,000 medical bills, UIM bridges the $20,000 gap (up to your UIM policy limit).

Both UM and UIM in New York extend to household relatives and passengers in your vehicle, providing broad protection.

Coverage Limits and Stacking Rules in NY
New York prohibits “stacking,” meaning you cannot combine UM/UIM limits across multiple vehicles on your policy or multiple policies to increase coverage. For instance, if you have three cars with $25,000 UM limits each, you cannot pool them for $75,000 in coverage.
Insurance experts recommend purchasing UM/UIM limits equal to your liability coverage. For higher-income earners or those with significant assets, increasing limits to $100,000/$300,000 or more can prevent out-of-pocket expenses after severe accidents.

Filing a UM/UIM Claim in New York
The process involves:

1. Reporting the Accident: Notify your insurer promptly, even if the at-fault driver is unidentified (e.g., hit-and-run).
2. Gathering Evidence: Provide a police report, medical records, witness statements, and proof of the other driver’s insurance status.
3. Insurance Investigation: Your insurer will verify the at-fault driver’s lack of coverage and assess your claim’s validity.
4. UIM Claims: If the other driver is underinsured, you must first settle with their insurer before accessing your UIM coverage.

New York’s three-year statute of limitations applies to UM/UIM claims, starting from the accident date.

Hit-and-Run Accidents and UM Coverage
New York treats hit-and-run accidents as uninsured motorist incidents. To qualify:

• You must file a police report within 24 hours.
• There must be physical contact between vehicles (e.g., the fleeing driver sideswipes your car). Exceptions exist if independent witnesses corroborate the accident.

UM coverage compensates for injuries, but vehicle repairs require collision coverage.

Common UM Coverage Misconceptions in NY

• Myth 1: “UM covers my car repairs.”
  Reality: UM in New York only covers bodily injury—property damage requires collision insurance.
• Myth 2: “UM applies regardless of fault.”
  Reality: UM/UIM only triggers if the other driver is at fault and uninsured/underinsured.
• Myth 3: “I don’t need UM if I have health insurance.”
  Reality: UM covers lost wages, pain and suffering, and other non-medical losses health insurance doesn’t address.

Cost of Uninsured Motorist Coverage in NY
UM/UIM premiums are generally affordable, often adding $30–$100 annually to a policy. Factors influencing cost include:

• Coverage Limits: Higher limits slightly increase premiums.
• Location: Urban areas like NYC with higher uninsured driver rates may have higher UM costs.
• Driving History: Accidents or violations can raise rates.

Comparing quotes from multiple insurers ensures you get the best value.

Selecting Appropriate UM Protection
To choose adequate coverage:

1. Evaluate Risk: 6% of New York drivers are uninsured—lower than the U.S. average (12.6%) but still a threat.
2. Assess Finances: Could you afford substantial medical bills if hit by an uninsured driver?
3. Align with Liability Limits: Opt for UM/UIM limits matching your liability coverage (e.g., $100,000/$300,000).
4. Consider Umbrella Policies: High-net-worth individuals may supplement UM with umbrella insurance for extra protection.

Seeking Legal Assistance for UM Claims
Disputes with insurers over UM/UIM claims are common. A lawyer can help if:

• Your insurer denies a valid claim.
• The at-fault driver’s insurer disputes liability.
• You’re offered a low settlement.
  New York allows attorney fees to be included in UM/UIM lawsuit recoveries, making legal aid accessible.

Exclusions and Special Cases
UM/UIM does not cover:

• Intentional injuries (e.g., road rage incidents).
• Accidents involving uninsured vehicles you own but didn’t insure.
• Commercial vehicles unless added via endorsement.
  Rideshare drivers (Uber/Lyft) may need additional UM coverage through their employer’s policy.

Impact of No-Fault Insurance on UM Claims
New York’s no-fault (PIP) insurance covers initial medical expenses regardless of fault, but UM/UIM becomes crucial for:

• Severe injuries exceeding PIP’s $50,000 limit.
• Non-economic damages (e.g., pain and suffering), which PIP doesn’t cover.
  UM/UIM claims can pursue these additional costs once PIP is exhausted.

Annual Review of UM Coverage
Reassess your UM/UIM limits during policy renewals or after major life changes (marriage, new home). Ensure coverage keeps pace with inflation and evolving risks.