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After a serious car accident, one of the first questions is usually: Does the at-fault driver have enough insurance to cover my injuries?
Unfortunately, the answer is not always yes.
A driver may cause an accident that results in surgery, extensive medical treatment, months away from work, and significant pain and suffering—yet carry only $25,000 in bodily injury liability coverage. When the medical bills alone approach or exceed that amount, injured people understandably wonder what happens next.
The good news is that the at-fault driver’s liability policy may not necessarily be the only source of insurance coverage available.
Here is what Georgia drivers should know.
Georgia generally requires drivers to maintain minimum liability insurance coverage. Under O.C.G.A. § 33-7-11, Georgia’s minimum bodily injury liability limits are commonly expressed as:
You may hear an insurance policy with these limits described as a “25/50/25” policy.
The important point is that $25,000 is a minimum—not necessarily an amount sufficient to compensate someone who suffers serious injuries.
Suppose another driver runs a red light and hits your vehicle. You suffer significant injuries and incur $60,000 in medical expenses.
The other driver has $25,000 per-person bodily injury limits.
Even if there is no legitimate dispute that the other driver caused the accident, the liability insurance company generally will not pay more than its insured’s applicable policy limit.
In this example, the $25,000 policy could therefore leave a substantial difference between the available liability coverage and the actual damages.
That does not necessarily mean the claim is limited to $25,000.
One of the most important places to look for additional coverage is your own automobile insurance policy.
Georgia’s uninsured motorist statute, O.C.G.A. § 33-7-11, addresses uninsured and underinsured motorist coverage, commonly called UM coverage.
Although people often associate UM coverage with hit-and-run drivers or drivers who have no insurance at all, it can also become important when the at-fault driver has insurance but does not have enough insurance.
That is why it is sometimes referred to as uninsured/underinsured motorist or UM/UIM coverage.
For example, assume:
Depending on the type and amount of your UM coverage, your own policy may provide an additional source of recovery after the at-fault driver’s coverage is exhausted.
Georgia UM policies can operate differently, so simply seeing “$50,000 UM” on a declarations page does not always tell the entire story.
One important distinction is between add-on and reduced-by coverage.
With add-on coverage, the available UM limits may be available in addition to the at-fault driver’s liability coverage, subject to the policy terms and Georgia law.
For a simplified example:
At-fault driver liability coverage: $25,000
Your add-on UM coverage: $50,000
Potential combined insurance coverage: up to $75,000
That can make an enormous difference when someone has suffered significant injuries.
Reduced-by coverage operates differently. The amount available under the UM policy can be reduced by the liability coverage available from the at-fault driver.
Using the same basic numbers, a $50,000 reduced-by UM policy does not necessarily mean that $50,000 is available on top of the other driver’s $25,000 policy.
This distinction is one reason we carefully review the actual insurance policies rather than relying solely on the numbers appearing on an insurance card.
Potentially.
A person injured in an automobile accident may have access to coverage through more than one policy depending on the circumstances.
For example, there may be questions regarding:
This is sometimes referred to as stacking UM coverage.
Whether multiple policies or coverages can be used depends heavily on the facts and the policy language. It is therefore important to identify all potentially applicable insurance coverage rather than assuming the policy on the vehicle is the only policy that matters.
Passengers can also face this problem.
Imagine you are riding with a friend when another driver causes a serious collision. The at-fault driver has only $25,000 in liability insurance, but your injuries substantially exceed that amount.
There may be multiple insurance policies that need to be investigated, including coverage associated with the vehicle you occupied and potentially other applicable policies.
The same principle can apply when an injured person is a child or another family member.
The key is to conduct a complete insurance coverage investigation.
Technically, an at-fault driver can be personally responsible for damages exceeding the available insurance coverage.
However, whether pursuing an individual’s personal assets makes practical sense depends on the circumstances.
Many drivers carrying minimum insurance limits may not have significant collectible assets. In other cases, there could be additional considerations.
Before resolving a serious injury claim for the liability policy limits, it can be important to investigate whether other insurance coverage, responsible parties, or potential sources of recovery exist.
This is another important question.
Suppose the driver who caused the accident was making a delivery, traveling between job sites, or otherwise acting within the course and scope of employment.
Depending on the facts, an employer or business may potentially have legal responsibility, and a commercial insurance policy may provide additional coverage.
The same concept can arise with:
A case that initially appears to involve only a $25,000 personal auto policy may therefore require additional investigation.
When an insurance company offers its driver’s $25,000 policy limit, it can sound like the case is over.
It may not be.
Before resolving the claim, important questions may include:
Is $25,000 really the full liability limit?
Is there an umbrella or excess policy?
Was the driver working at the time?
Is another person or company potentially responsible?
Does the injured person have UM coverage?
Could another household policy provide UM coverage?
Is the UM coverage add-on or reduced-by?
Those questions can be especially important when the injuries are serious.
There is a major difference between determining the value of a personal injury claim and determining the amount of insurance coverage available to pay it.
A person’s injuries and damages may substantially exceed the at-fault driver’s insurance limits.
Damages in a Georgia personal injury case may potentially include medical expenses, lost income, pain and suffering, and other losses depending on the circumstances. See generally O.C.G.A. §§ 51-12-4 and 51-12-7.
That is why identifying all available coverage is an important part of evaluating an automobile accident case.
At Kevin Patrick Law, one of the things we look at in a serious automobile accident case is the complete insurance picture.
When an at-fault driver has only $25,000 in coverage, we don’t automatically assume that $25,000 represents the maximum potential recovery.
We look at the circumstances of the collision, available liability coverage, potential UM coverage, other applicable policies, and whether another person or business may bear responsibility.
Sometimes the insurance investigation can be just as important as investigating how the accident happened.
If you have been seriously injured in a Georgia automobile accident and are concerned that the other driver does not have enough insurance, we are happy to discuss the situation and help you understand your options.
This article is provided for general informational purposes only and is not legal advice. Insurance coverage depends on the facts, applicable Georgia law, and the specific language of the insurance policies involved. Prior results do not guarantee a similar outcome.
Georgia generally requires at least $25,000 in bodily injury liability coverage for injury or death to one person, subject to applicable Georgia law.
The liability insurer’s policy limits may not be the only potential source of recovery. UM coverage, other applicable insurance policies, additional responsible parties, and other potential sources should be investigated.
Potentially. If you have applicable uninsured/underinsured motorist coverage, your own insurance policy may provide coverage even though another driver caused the accident.
Not necessarily. A UM claim is a contractual insurance claim for coverage you purchased. The procedure for pursuing the claim depends on the circumstances.
That decision depends on the facts of the case. Before resolving a significant injury claim, it is important to understand the effect of any release and investigate other potentially available coverage.
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