Understanding Underinsured Motorist Coverage Add-On vs. Reduced by Limits in Georgia Auto Accidents

When it comes to protecting yourself in the event of a car accident, having the right insurance coverage can make all the difference. In Georgia, two common options to consider are underinsured motorist coverage add-on and reduced by limits coverage.  We’re here to break down the differences to help you make an informed decision.

Underinsured Motorist Coverage Add-On:

Underinsured motorist coverage add-on is an additional layer of protection you can add to your auto insurance policy. This coverage comes into play when you’re involved in an accident with a driver who has insurance, but their coverage limits aren’t enough to fully cover your expenses. If you’re injured and the at-fault driver’s insurance falls short, your underinsured motorist coverage can bridge the gap, helping you cover medical bills, lost wages, and other damages that exceed the other driver’s policy limits.

Reduced by Limits Coverage:

On the other hand, reduced by limits coverage refers to a scenario where your own insurance policy limits are reduced by the amount you receive from the at-fault driver’s insurance. This means that your coverage will only come into play if the other driver’s insurance isn’t enough to cover your damages. While this option might seem more budget-friendly initially, it could potentially leave you with inadequate coverage if the other driver’s insurance falls short of your expenses.

Which Option Is Right for You?

Choosing between underinsured motorist coverage add-on and reduced by limits coverage depends on your individual circumstances and priorities. While reduced by limits coverage might offer lower premiums, it could also leave you vulnerable to inadequate compensation. Underinsured motorist coverage add-on, although typically pricier, provides an extra layer of security, ensuring you’re protected in case of a severe accident.

We understand the complexities of insurance coverage and legal intricacies. We recommend thoroughly reviewing your insurance policy, considering your budget and risk tolerance, and making an informed choice. Remember, the aftermath of a car accident can be overwhelming, and having the right insurance coverage is crucial. If you’re unsure which option is best for you or need assistance with an accident claim, don’t hesitate to reach out to Kevin at (404) 566-5880 or kevin@patricktriallaw.com. We’re dedicated to helping you navigate the legal process.

In conclusion, whether you choose underinsured motorist coverage add-on or reduced by limits coverage, ensuring you have adequate protection is key. Your safety and peace of mind on the road are worth the investment.