Uninsured Motorist Coverage Altered by N.Y. Politicians

Another required, but not required uninsured motorist coverage could be showing up automatically on New York insurance policies.

New York politicians work on changing what is required to be offered on your insurance policy.

Drivers in New York could very well be seeing a new required coverage on their insurance policies here soon. The recent New York state legislative session passed a bill that requires supplementary uninsured/underinsured motorist coverage to now be automatically added to all New York insurance policies.

You don’t have to keep it though; you can opt-out of it if you don’t want it. Just be aware that it will be automatically added to your policy and you will be charged for the coverage if you don’t opt-out.

What is Supplementary Uninsured/Underinsured Motorist Coverage?

Supplementary uninsured/underinsured motorist (SUM) coverage basically adds more protection for you and your family than the regular uninsured/underinsured motorist coverage does. It’s like an umbrella policy for your uninsured/underinsured motorist coverage.

SUM is not a new coverage; it has been available to drivers for a while now. The alteration that the New York legislation passed is that it now be automatically added to policies, like the uninsured/underinsured motorist coverage is.

Uninsured Motorist Opt-Out

A lot of other states allow you to opt-out of uninsured/underinsured motorist coverage altogether. It is not a required coverage; it is just required to be offered to you. This is not what is happening in New York.

The state of New York still requires that you carry uninsured/underinsured motorist coverage; there is no opt-out option for this coverage. It is only the supplementary uninsured/underinsured motorist coverage that this particular bill affects. SUM will not be made mandatory for you to be able to drive in New York; it is just being made mandatory that it has to be offered.

Reactions to the Uninsured Motorist Changes

The first time I read the news that came out on this new bill in New York, my first reaction was that the insurance companies were behind it. It was another way to get something else added to the policy that people would miss the opt-out option for, and the insurance companies would profit from it.

Boy, was I wrong!

The insurance companies were actually against this bill. They are worried that it will seem like they are trying to slip something by the consumer when the coverage is put on the policy without them requesting it.

The driving forces behind this new bill were legal organizations (New York State Trial Lawyers Association) and attorneys. They feel that the bill makes people aware of the coverage they should know more about. They also feel that it better protects the taxpayers from having to foot the bill for medical expenses that end up being covered by public health insurance programs.

What are your thoughts on this new uninsured motorist bill?

Source: Online Auto Insurance News