What is Uninsured Motorist Coverage?
Uninsured motorist coverage (UM) is an essential part of auto insurance that can help protect you if you’re involved in an accident with a driver who either has no insurance or insufficient insurance to cover your medical expenses, lost wages, and pain and suffering. Georgia, like many states, requires drivers to carry a minimum amount of insurance—$25,000 per person in liability coverage for accidents they cause. However, this amount often isn’t enough to cover serious injuries, and many drivers don’t carry the minimum required coverage.
By purchasing uninsured motorist coverage, you can protect yourself if the at-fault driver doesn’t have enough insurance or none at all. UM coverage can help pay for your injuries and damages that exceed the other driver’s insurance policy.
Why Do Drivers Lack Insurance?
The primary reason drivers in Georgia and elsewhere go uninsured or underinsured is cost. Insurance premiums can be expensive, and some drivers may simply skip paying their premiums, either because they can’t afford it or they forget to make a payment, leading to a lapse in coverage. In these situations, drivers may intend to get back on track, but an accident can occur before they reinstate their coverage, leaving you with no recourse to cover your damages.
A driver with the minimum insurance required by law may still have an inadequate policy to cover significant injuries, such as severe spinal damage or long-term medical care. Unfortunately, many people don’t realize how little protection this offers until it’s too late.
Georgia’s At-Fault System and Its Impact on Claims
Georgia operates under a traditional “at-fault” insurance system. This means that the driver responsible for the accident (the at-fault driver) must cover the costs of the other party’s injuries and damages. However, in many cases, the at-fault driver either doesn’t have enough coverage or has no coverage at all, leaving you to rely on your own insurance.
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What to Do After an Accident with an Uninsured or Underinsured Driver
If you’re in an accident with an uninsured or underinsured driver, the first thing you should do is report the accident to your own insurance company. Many people fear their insurance rates will go up, but in Georgia, your rates cannot increase if you’re making a claim for a no-fault accident.
It’s also crucial to contact a trusted personal injury attorney to help you navigate the claims process. Your attorney can guide you on how to file the claim with your insurance company and pursue any additional compensation available under your UM coverage.
Challenges with Uninsured and Underinsured Motorists
The biggest challenge after an accident with an uninsured or underinsured driver is that you’re largely on your own when it comes to recovering your losses. If the at-fault driver has no insurance or not enough coverage, you may be left with medical bills, lost wages, and other expenses that can easily exceed the driver’s liability coverage.
One of the best ways to protect yourself is by purchasing enough uninsured motorist coverage to match your liability coverage. For example, if you have $50,000 in liability coverage, you should have at least $50,000 in uninsured motorist coverage. This can help ensure you’re adequately covered in case the other driver is either underinsured or uninsured altogether.
The Importance of Stacked Coverage
When purchasing uninsured motorist coverage, it’s important to understand the difference between two key types: reduced by and stacked coverage. With reduced coverage, your insurance company pays less based on the amount of coverage the at-fault driver has. For example, if you have $25,000 in uninsured motorist coverage and the other driver has $25,000 in liability coverage, you’ll end up with no additional coverage from your own policy.
On the other hand, stacked or excess coverage adds your uninsured motorist coverage to the other driver’s liability coverage. For example, if you have $25,000 in uninsured motorist coverage and the other driver has $25,000 in liability coverage, you’ll have $50,000 in total coverage. This type of coverage provides more protection and often justifies the small additional cost.
Add Adequate Uninsured Motorist Coverage
To ensure you’re adequately covered, the first step is to review your insurance policy and have a candid conversation with your insurance agent. Let them know you’re concerned about being underinsured and ask them to explain your options, especially when it comes to stacking your uninsured motorist coverage.
Uninsured motorist coverage offers excellent protection for you and your family. Georgia law does not require UM coverage. You should consider getting uninsured motorist coverage for your safety. Don’t risk getting by with just the bare minimum—consider adding uninsured motorist coverage to your policy to cover any potential gaps.
Real-Life Case Study: Uninsured and Underinsured Accidents
Many clients suffer injuries in accidents caused by drivers who have only the state minimum of $25,000 in liability coverage. Unfortunately, this is often insufficient for serious injuries. For example, a person may require long-term medical treatment, physical therapy, or even surgery following an accident. In such cases, even the most severe injuries can exceed the at-fault driver’s policy limits. Thankfully, purchasing uninsured motorist coverage allows our clients to recover additional compensation from their own insurance policies, making a significant difference in their ability to cover medical bills and recover lost wages.
The Bottom Line on Uninsured Motorist Coverage
Having the right insurance coverage is crucial to protecting your financial future and health in the event of an accident. If you’re unsure whether you have the right coverage or if your current policy provides enough protection, take a moment to review it with your agent. It’s always better to have more coverage than not enough, especially when it comes to uninsured and underinsured motorists.
