While most people understand the importance of purchasing auto insurance coverage, many often want to pay as little in premiums as possible. That’s why many decline to purchase uninsured motorist (UM) and underinsured motorist (UIM) coverage. UM and UIM insurance are essential in Georgia and can protect you in many common car accident scenarios that we will discuss here.
What Is UM and UIM Insurance?
UM and UIM are additional types of coverage you can purchase as part of your auto insurance policy. UM and UIM coverage is purchased together to protect you and your passengers in accidents caused by an uninsured or underinsured driver. Uninsured motorist, or UM, insurance is used to protect you in an accident when the at-fault driver has no insurance. Underinsured motorist, or UIM, insurance applies in cases where the at-fault driver does not have enough insurance to cover the cost of the losses caused by the accident. Georgia law does not require motorists to carry UM and UIM insurance, but it requires insurance companies to offer it.
Why Is UM and UIM Insurance Important?
Uninsured and underinsured motorists are probably more common than you think. An estimated 12.4 percent of motorists in Georgia are uninsured. Drivers may be uninsured for many reasons, from simply choosing not to buy insurance to being unlicensed or failing to pay their premiums. If you are involved in an accident with an uninsured motorist, UM insurance may be your only option for obtaining compensation.
Many people choose only to purchase the minimum amount of auto liability coverage. These amounts are:
- $25,000 per person and $50,000 per accident for bodily injury
- $25,000 per accident for property damage
Suppose you are involved in a severe or catastrophic injury accident with a motorist carrying minimum coverage. In that case, it’s unlikely that these amounts would be enough to cover all of your losses. Without UIM insurance, you could end up having to pay out-of-pocket for medical bills and property repairs that exceed these amounts.
When Does UM and UIM Insurance Apply?
UM and UIM insurance coverage can be used to protect you when you are involved in one of the following types of accidents:
- A crash caused by a driver who has no insurance
- A crash caused by a driver who does not have enough insurance coverage to fully compensate for all losses, including property damage and bodily injury to you and your passengers
- A hit-and-run accident where the at-fault driver cannot be identified
- A pedestrian or bicycle accident
Most UM and UIM policies provide coverage for you and the following individuals:
- Your spouse, if they live in the same household
- Your children who live in your household
- Anyone who is using your insured vehicle with your consent
- Any other passengers riding in your insured vehicle
What Types of UM and UIM Coverage Are Available?
In Georgia, there are two types of UM and UIM coverage:
- Non-stacking – This type of coverage is also referred to as “reduction” or “traditional” coverage. You can use non-stacking coverage only if it exceeds the at-fault driver’s insurance coverage. For example, let’s say you have $50,000 in non-stacking UM/UIM coverage. You are hit by a driver who has only the minimum $25,000 in bodily injury liability coverage. You are seriously injured in this accident, and your medical bills amount to $35,000. In this case, you would be able to draw on the first $25,000 from the other driver’s policy, and the remaining $10,000 would come from your UM/UIM insurance. If, on the other hand, you and the other driver both had the same amount of $25,000 in coverage, you would not be able to use your UM/UIM policy at all. Instead, the additional $10,000 in medical bills would have to be paid out-of-pocket by you.
- Stacking – This type of coverage is also called “add-on” or “excess” coverage. Stacking coverage allows you to “stack” your coverage on top of the other driver’s. So, in the scenario above, if you and the other driver both have $25,000 in coverage, you can use their $25,000 plus your additional $25,000 in coverage. While stacking insurance is more expensive, it is more likely to provide the coverage you need in the event of an accident.
Regardless of what type of UM/UIM coverage you have, you must notify your insurance company about an accident as soon as possible after it occurs. Just because the at-fault driver can show proof of insurance at an accident scene does not mean that they have valid insurance. To make a claim against your UM/UIM insurance coverage, you are required to notify your insurance company of an accident promptly. Failure to do so could result in a denial of your UM/UIM insurance claim.
Injured in an Accident? How an Auto Accident Attorney Can Help
Getting legal help immediately after a car accident can strengthen your claim and improve your chances of receiving maximum compensation for your losses. A Gwinnett County car accident attorney can help you understand the complicated insurance claims process and your rights in the event of an accident. They can deal with the insurance companies on your behalf to ensure that all UM/UIM policy rules and reporting requirements are met and help you seek the fair compensation you’re entitled to.
At Brauns Accident & Injury Lawyer PC, we are dedicated to helping our clients with every aspect of their case. Our sole personal injury attorney and founder, David Brauns, understands how insurance companies evaluate claims and how to negotiate a fair settlement or file a lawsuit and take your case to court. We work on a contingency fee basis, meaning you won’t pay anything unless we win money for you. The process must be started quickly with a UM/UIM auto accident claim, so don’t wait any longer. Call or contact us online today.
