An underinsured motorist (UIM) insurance policy can protect you and your family if you are hit by an underinsured motorist because it provides additionally levels of insurance coverage to pursue if the other driver’s insurance falls short. Although Georgia law requires all drivers on public roads to have liability insurance coverage that meets the state’s minimums (ie. in Georgia the minimum coverage for bodily injury is $25k/$50k), many do not. According to estimates from the Insurance Information Institute, about 18% of drivers in Georgia are uninsured and that does not include underinsured motorists. In other words, if you get into a serious car accident on a Georgia road, there is a good chance that the other driver will not have enough insurance to pay for your losses. If you purchase underinsured motorist insurance (UIM), though, you can prepare ahead of time for this unfortunately likely situation.
Georgia Insurance Coverage Requirements & Limits
Currently, Georgia requires drivers to carry auto insurance that meets these minimum limits:
- Bodily injury liability: $25,000 per person and $50,000 per accident/incident
- Property damage liability: $25,000 per accident/incident
When a car accident occurs, the auto insurance companies that sold policies to the parties involved will step in, assess the damage, and determine how much coverage is needed and owed to the policyholders. Different insurance policies offer different types and limits of coverage, such as liability, collision, and comprehensive coverage. Once the limits of all applicable policies are reached, the insurance company will stop offering financial coverage, and any remaining costs become the responsibility of the policyholder.
The policy limits on auto insurance are why it is so important to carry the best insurance that you can reasonably afford, including underinsured motorist coverage. If you are in an accident that results in damages that exceed the applicable policy limits, you could be paying out of pocket for any remaining expenses and losses.
Importance of Having Underinsured Motorist Coverage
Underinsured motorist coverage is designed to protect you if you're involved in an accident where the at-fault driver doesn't have sufficient insurance to cover the damages. When you have this coverage, your insurance company should step in to pay the difference between the at-fault driver's insurance limits and the actual cost of your medical expenses, lost wages, and other damages, up to the limits of your own policy. If you don’t want to feel financial pressure after being in an accident with an underinsured motorist, it is so important that you make sure you have underinsured motorist coverage as part of your auto insurance package before the next time you head out on the road.
Gaps in Basic Insurance
As mentioned, Georgia only requires drivers to carry a 25/50/25 liability insurance policy. While these insurance limits might seem significant, they are often not enough to cover the losses caused by serious car accidents. Huge gaps might exist between the available coverage and what actually needs to be provided to help you get back to how you were before the crash. Underinsured motorist coverage is a great solution to bridge this gap—but it only works if you have already purchased this type of coverage before a traffic collision.
Steps to Prevent Being Underinsured
The simplest way to prevent yourself from being underinsured and to prevent many potential problems caused by other underinsured motorists is to add an underinsured motorist coverage plan to your auto insurance policy today. Practically every major auto insurance company that operates in Georgia offers this type of insurance add-on. It is often sold as a “UIM policy” or a “UM/UIM policy,” so you can see if your auto insurance carrier offers it under that name, too.
You should also check to see if you already have purchased it by seeing if a UM/UIM policy is listed in your current insurance coverage. If you already have this policy in place, it will still be worth reviewing the policy with an insurance agent to determine if you want to increase or change the coverage limit.
When talking with an auto insurance agent about underinsured motorist coverage, consider asking these questions:
- What coverage limits do you sell for underinsured motorist protection?
- Can I adjust my underinsured motorist coverage if I already have it or want to change it later?
- How will adding underinsured motorist coverage impact my overall insurance premium?
- Are there any specific situations or types of accidents where underinsured motorist coverage would not apply?
- How does the claims process work if I need to use my underinsured motorist coverage after an accident?
A Few Steps Today Can Make a Big Difference Tomorrow
Ultimately, the best way to avoid frustrations that can happen after you are hit by an underinsured motorist is to be prepared in advance. Make sure you have underinsured motorist insurance as part of your policy. Consider adding or increasing other types of insurance coverage, too, beyond just liability. Of course, it is just as important to do what you can to avoid liability for an accident by always driving defensively and responsibly.
If you get into a car accident, you likely won’t be able to know right away if the other driver is underinsured or not. What you can do, though, is reach out to The Law Office of Joshua W. Branch, LLC and our car accident lawyers in Athens, Atlanta, and Darien. We can help you understand your options to pursue compensation, and we’ll be ready to guide you if it turns out the other driver is uninsured or underinsured.
Call (706) 760-9220 to request a free consultation today.