How Does Uninsured Motorist Coverage Protect (or Not Protect) You in New York City?
New York law requires drivers to purchase and maintain a minimum amount of auto insurance coverage in order to legally register their motor vehicle with the state. If you are an active New York driver, you probably know that this insurance mandate includes personal injury protection (or “no-fault”) coverage that covers your medical expenses and lost income in the event of an accident. You also must carry liability coverage in case you cause injury or property damage to another person while driving.
But there is a third type of mandatory auto insurance in New York: Uninsured Motorist (UM) coverage. Below are some commonly asked questions our office receives about UM coverage.
What Is an “Uninsured Motorist”?
It is basically what it sounds like. An uninsured motorist is someone who operates a motor vehicle in the State of New York without carrying mandatory insurance. In the context of an accident where you are injured, it refers to a driver who has no liability coverage.
An uninsured motorist can also refer to an accident caused by an unknown driver. This is otherwise known as a “hit and run” driver. Keep in mind, such drivers are only considered “uninsured motorists” for insurance purposes if they are never identified.
What Damages Does UM Coverage Pay For?
Uninsured motorist coverage pays for bodily injury damages. In other words, any compensation you could normally seek from an at-fault driver from your pain and suffering, medical bills or lost income would be covered under your UM policy. UM coverage would “step into the shoes” of the uninsured (or hit-and-run) motorist’s non-existent liability coverage.
Every driver of a motor vehicle in New York is required to have an insurance policy with a minimum of $25,000/$50,000 in liability coverage. Every insurance policy in New York also automatically includes UM coverage for $25,000/$50,000 as well.
Will UM Coverage Pay to Fix My Car?
No. Uninsured motorist coverage is only meant to pay for bodily injury. It does not cover any “property damage,” which includes the costs of repairing or replacing your damaged vehicle. You may, however, purchase separate collision coverage with your auto insurance policy, which would cover such property damage.
What If the At-Fault Driver Has Insurance But It’s Not Enough to Pay My Claim?
That is what is known as an underinsured motorist.
Your Underinsured Motorist Coverage covers you, the policy holder, when the at-fault driver does not have enough insurance coverage to pay for all the damage he or she caused. It is insurance held by you, the injured party that kicks in when the at-fault party does not have enough insurance to fully compensate you for the injuries you suffered.
The law is that first you must sue and collect the entire insurance policy from the at-fault driver. Assuming that the at-fault driver has the legally required minimum liability coverage of $25,000. You must first collect that $25,000 for the at-fault driver’s insurance. Then you must make your claim as against your Underinsured Motorist Coverage. However, the law also provides that your insurance company gets dollar for dollar credit for the $25,000 already paid by the at-fault driver. This means if you only have a $25,000 Underinsured policy you cannot collect anything from your policy after the credit is applied.
It is therefore recommended that you buy a higher Underinsured coverage from your policy. So, for example, if you pay for $100,000 Underinsurance in your policy, then if the other at-fault driver pays you the $25,000 that they had, then you can collect $75,000 for your own insurance company after they get the credit for the $25,000 already paid.
Your insurance company must also be given timely notice that you may be making an Underinsured Motorist Coverage claim as against your policy.
Contact a New York City Car Accident Lawyer
Even when your own insurance company is largely responsible for compensating you following a crash, you can still face significant legal hurdles when it comes to getting paid the full amount you are owed. This is where an experienced New York City car accident lawyer can help. Contact the Law Offices of Jaroslawicz & Jaros, PLLC, at 212-227-2780 to schedule a consultation. We serve clients throughout New York City and Long Island and surrounding communities.