Are You Fully Covered In A
Motor Vehicle Collision?
What is Uninsured or Underinsured Motorist Coverage?
Uninsured/underinsured motorist insurance covers your own bodily injuries when an at-fault driver
(1) does not have insurance
(2) does not have enough insurance to cover your injuries, or
(3) is never found after a hit-and-run.
The Importance of Having Uninsured or Underinsured Motorist (UM) Coverage
Georgia law requires all drivers to have a minimum coverage of liability insurance for bodily injuries ($25,000 per person and $50,000 per accident), but 1 out of 10 drivers in Georgia are still uninsured.
To ensure that you are fully covered if you are injured in a collision, you need to have uninsured/underinsured motorist (UM) coverage on your car insurance policy. Liability coverage protects other drivers or passengers if you are at fault in a collision, but UM coverage protects YOU when another driver is at fault.
How does UM Coverage Kick-in when there is Available Liability Coverage?
UM coverage kicks in when your bodily injury damages are more than the at-fault driver’s liability coverage.
There are two types of UM coverage: “reduced-by” and “added-on”. If you have “reduced-by” UM coverage, the amount of UM coverage available to you is reduced, or “offset”, by the liability insurance. If you have “added-on” UM coverage, the amount of UM coverage available to you is added-on or “stacked,” to the liability insurance.
For example: You have $100,000 of damages. The at-fault driver has $25,000 in bodily injury liability coverage. You have $100,000 in UM coverage. If it’s “reduced-by” coverage: you have $75,000 available in UM coverage. If it’s “added-on” coverage: you still have the full $100,000 available in UM coverage, even after you are paid the $25,000 in liability coverage.
Without UM coverage, you could be left with a portion of your damages going unpaid. To make sure you are fully covered, you should confirm with your insurance agent that you have UM coverage on your policy (preferably, added-on coverage).
Who can use your UM Coverage?
- Your spouse (if living in the same household);
- Relatives of you and your spouse (children, step-children) residing in your household;
- Anyone who is using your insured vehicle with your express or implied consent; and
- A guest who is riding as a passenger in your insured vehicle.
Georgia Car Accident Attorney
At Schneider Law, P.C., we have experience navigating the various types of coverage that may be available to you if you are injured in a car wreck. If you are uncertain what insurance policy you have, don’t worry, Schneider Law, P.C. can walk you through the process, and ensure that you are taking advantage of all possible coverage that exists.