The Key Differences Between Uninsured and Underinsured Motorist Claims in Georgia

When it comes to car accidents in Georgia, understanding the differences between uninsured motorist (UM) claims and underinsured motorist (UIM) claims is crucial for accident victims seeking compensation for their injuries and damages. Both types of claims fall under the broader category of motorist coverage designed to protect drivers when the at-fault party’s insurance coverage is insufficient or nonexistent. However, the specifics of each type of claim, the laws governing them in Georgia, and how they impact accident victims differ in significant ways. This post will explore these distinctions, shedding light on what drivers in Georgia need to know.

Uninsured Motorist (UM) Claims

Uninsured motorist claims arise when the at-fault driver does not have liability insurance. In Georgia, state law requires drivers to carry minimum liability insurance coverage, but not all comply. When an uninsured driver causes an accident, victims can find themselves in a challenging position, especially if they rely solely on the at-fault driver’s ability to pay for damages.

What Is Uninsured Motorist Coverage?

UM coverage is an optional add-on to a car insurance policy in Georgia, designed to provide compensation for damages caused by an uninsured driver. This type of coverage can help pay for:

• Medical expenses
• Lost wages
• Pain and suffering
• Property damage

UM coverage ensures that accident victims are not left financially vulnerable due to the negligence of an uninsured driver.

Types of Uninsured Motorist Coverage in Georgia

Georgia recognizes two types of uninsured motorist coverage:

1. Add-On Coverage: This type of UM coverage is separate from and in addition to any other available insurance, such as the at-fault driver’s coverage or other policies the victim may have.
2. Reduced-by Coverage: Also known as traditional or offset coverage, this type of UM coverage is reduced by the amount of liability insurance available from the at-fault driver. For example, if the at-fault driver has minimal liability coverage, the UM coverage would only cover damages exceeding that amount.

Filing a UM Claim

To file a UM claim in Georgia, accident victims must:

1. Notify their insurance company promptly.
2. Provide evidence that the at-fault driver was uninsured. This may include police reports and statements from the other driver.
3. Document their injuries, medical bills, and other damages.

It’s essential to understand that Georgia law has strict procedural requirements for UM claims. Failing to comply with these requirements can result in denial of the claim.

Underinsured Motorist (UIM) Claims

Underinsured motorist claims apply when the at-fault driver has liability insurance, but their policy limits are insufficient to cover the victim’s damages. In such cases, the victim’s UIM coverage can provide additional compensation to bridge the gap.

What Is Underinsured Motorist Coverage?

UIM coverage, like UM coverage, is optional in Georgia. It provides compensation when:

• The at-fault driver’s insurance coverage is inadequate.
• The victim’s damages exceed the at-fault driver’s policy limits.

For example, if an accident victim incurs $50,000 in damages and the at-fault driver’s liability policy covers only $25,000, UIM coverage can help cover the remaining $25,000, depending on the victim’s policy limits.

Types of Underinsured Motorist Coverage in Georgia

Underinsured motorist coverage operates similarly to uninsured motorist coverage, with the same two options:

1. Add-On Coverage: This coverage is applied on top of the at-fault driver’s liability limits. It provides maximum protection to the victim.
2. Reduced-by Coverage: This type offsets the UIM coverage by the amount available from the at-fault driver’s liability policy.

Filing a UIM Claim

Filing a UIM claim involves several steps:

1. Notify the insurance company about the potential for a UIM claim.
2. Exhaust the at-fault driver’s liability policy. Most UIM policies require the victim to collect the full amount available from the at-fault driver’s insurer before accessing UIM benefits.
3. Provide detailed documentation of damages, including medical bills, lost wages, and property damage.

Like UM claims, UIM claims are subject to strict procedural rules under Georgia law.

Legal Considerations in Georgia

Georgia’s laws on uninsured and underinsured motorist coverage are complex. Some important legal points to consider include:

1. Policy Stacking: Georgia allows stacking of UM and UIM policies, meaning victims can combine multiple policies to maximize their compensation. For example, a victim with coverage on multiple vehicles may be able to access the combined policy limits.
2. Statute of Limitations: Victims must file UM or UIM claims within the statute of limitations for personal injury cases in Georgia, which is generally two years from the date of the accident.
3. Rejection of Coverage: Insurance companies in Georgia must offer UM and UIM coverage, but drivers can reject it in writing. It’s essential to review your policy to determine if you have this coverage.

Practical Advice for Georgia Drivers

1. Review Your Insurance Policy: Ensure you have sufficient UM and UIM coverage. Given the high number of uninsured and underinsured drivers on Georgia roads, this coverage can be a financial lifesaver.
2. Document Everything: In the event of an accident, document the scene, gather witness statements, and obtain a police report. These steps are vital for filing a successful UM or UIM claim.
3. Consult an Attorney: Navigating UM and UIM claims can be legally and procedurally complex. Consulting an experienced attorney, like Kevin Patrick, can help ensure your rights are protected and maximize your compensation.

Understanding the differences between uninsured motorist and underinsured motorist claims is critical for drivers in Georgia. Both types of coverage offer essential protection, but they serve distinct purposes and come with unique requirements. By familiarizing yourself with the nuances of UM and UIM coverage, reviewing your insurance policy, and seeking professional legal advice when necessary, you can be better prepared to handle the financial aftermath of a car accident. Whether dealing with an uninsured driver or an underinsured one, having the right coverage in place can make all the difference.