New SUM Insurance Law – a victory for the consumer
The Supplementary Uninsured/Underinsured Motorist (SUM) bill S5644B/ A8519A — also known as the “Driver and Family Protection Act.” became law today. This law protects New Yorkers statewide who are involved in auto accidents with drivers who are either uninsured or underinsured.
Unfortunately, few consumers are educated about SUM insurance. Accident victims suffer because they and their loved ones do not have or know about this proper protection, which protects the accident victim against vehicles/drivers who either do not have insurance or inadequate insurance in light of the accident injuries they cause.
The Governor and the New York Legislature requires Transportation Network Companies (Uber, Lyft and other “rideshare” companies when operating outside NYC) to establish SUM insurance coverage for all their rideshare vehicles at $1.25 million, an amount equal to their required general auto insurance liability coverage.
This long overdue and commonsensical new law will require insurance companies to inform their insured about SUM coverage and provide them with a waiver opt-out form for all new insurance policies, notifying them that the coverage will be included in their policy unless they choose not to accept this protection by signing the waiver.
Michael Manoussos & Co PLLC are “Serious Lawyers for Serious Money’ who represent accident victims, workers and consumers.