When it comes to car accidents, uninsured motorist (UM) coverage can keep you protected so you come out of a wreck without losing a lot of money. Let us explain.
To drive on Georgia's roads, state law requires all drivers to carry at least these minimum auto-insurance coverages (as of 2021):
- Bodily Injury (BI) liability$25,000 per person / $50,000 per accident
- Property Damage (PD) liability$25,000 per accident
- Uninsured Motorist (UM) — Bodily Injury$25,000 per person / $50,000 per accident
- Uninsured Motorist (UM) — Property Damage$25,000 with a $250, $500, or $1,000 deductible
These minimums come from O.C.G.A. § 33-7-11. But despite that requirement, should you rely solely on the other driver's liability limits? The answer is a resounding no.
Why Uninsured Motorist Coverage Is Important
Imagine you've been hurt in a serious wreck. You're taken from the scene by ambulance to a local ER, where physicians order X-rays and CT scans to assess your injuries. After discharge you need more care — an orthopedist, a chiropractor, pain management, physical therapy, and so on. That $25,000 in minimum BI limits will be gone on your medical bills alone, quite possibly leaving some bills unpaid.
But what about your general damages — pain and suffering, interference with normal living, loss of enjoyment of life? If all there is to recover against is a minimum-limits policy, chances are that once the medical bills are covered there's nothing left to compensate you for your injuries. That's where uninsured motorist coverage comes in.
The Two Types of UM Coverage in Georgia
There are two types of UM insurance in Georgia: "reduced by" (traditional) and "add-on." The difference is enormous. Consider this scenario:
You're injured by a driver carrying a minimum-limits policy of $25,000, and you have "reduced by" UM coverage of $25,000. Your UM coverage is reduced by the amount of liability coverage available — so $25,000 liability minus $25,000 traditional UM means your insurer owes nothing under your UM benefits. All those extra premiums bought you nothing. If the other driver has even minimum coverage, your "reduced by" UM insurance is essentially worthless.
Because Georgia's minimum coverage for negligent drivers is so low, we routinely handle UM claims for our clients. If you don't have add-on UM coverage now, speak with your agent about adding it to your existing policy. It's relatively inexpensive — and you will probably need it.