Occasionally, a Buffalo personal injury lawsuit arising from a motor vehicle accident may involve an additional claim against the plaintiff’s own Supplementary Underinsured Motorist (SUM) insurance. This occurs when the injured person’s carries an amount of SUM insurance greater than the insurance carried by the defendant and the defendant’s entire policy is exhausted. When this happens, an injured party may seek additional compensation from the SUM carrier up to an amount equal to the difference between the amount paid by the defendant and the total amount of the SUM policy.
It is essential that the defendant pay the entire amount of his or her auto insurance policy before SUM coverage can be pursued. So what happens in cases where there is more than one defendant and, therefore, more than one auto insurance policy available to the injured person?
While insurance carriers may prefer that all defendants’ insurance be exhausted before SUM coverage is made available, the courts of New York State have ruled that this is not the case. All that is required is that one defendant’s policy be paid to the fullest amount available. Once this occurs, the injured person may seek additional payment from the SUM carrier.
If you have been injured in a car accident and have any questions, we would be happy to help you. Please call us at 716-542-5444.
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