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Uninsured/Underinsured motorist insurance coverage can be a challenge to understand. Unfortunately, that isn't by coincidence. Uninsured motorist insurance is governed by Georgia Code 33-7-11. One glance at the paragraphs that make up this statute is enough to make inexperienced attorneys get sick to their stomachs, let alone someone without any formal legal training. While the full depth of uninsured motorist insurance is beyond the scope of a single article, there are certain key points that everyone should know.

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Don't Be Afraid to Use Your Insurance

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The most common worry we hear from clients is their fear that by filing a claim with their uninsured motorist insurer their premiums will increase or they will lose their insurance. This is not true. While insurance companies are happy to allow this fear to persist, in truth Georgia law prohibits an insurance company from raising your premiums or dropping you when you are not at fault for the crash.

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You've paid your premiums for uninsured motorist insurance. Don't be afraid to use it when the crash isn't your fault.

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Uninsured Coverage = Underinsured Coverage

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When contemplating uninsured motorist insurance, most people believe it only applies when the at-fault party has no insurance, or when there is no at-fault party like in a hit-and-run. That is not the case. In Georgia, uninsured motorist insurance is synonymous with underinsured motorist insurance. What that means is that you are entitled to coverage not only when there is no at-fault coverage available, but also when the amount of that coverage is inadequate to cover your damages, including your medical bills, lost wages, and pain and suffering.

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The minimum amount of liability coverage required in Georgia is only $25,000. If you forgo uninsured motorist insurance, that may be all the coverage available to compensate you--whether you bumped your head or lost a leg.

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Reduced Coverage v. Added-On Coverage

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The vast majority of people don't realize that uninsured motorist insurance comes in two forms: 1) reduced coverage; and 2) added-on coverage. Which one you have can have a tremendous impact on the amount of your available compensation, even whether you're entitled to any coverage at all.

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Reduced (also called traditional coverage) is usually the default choice an insurer provides. With reduced coverage, you're only entitled to amounts in excess of the at-fault party's liability coverage. For example, if the at-fault party had coverage of $25,000 and you had reduced uninsured coverage of $75,000, you would only be entitled to coverage of $50,000--your uninsured insurance is "reduced" by the at-fault party's liability coverage. Likewise, if you instead only had uninsured coverage of $25,000, you would not be entitled to any coverage. This can create an obviously unfair situation if your damages are in excess of the at-fault party's coverage.

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In response to that unfair situation, added-on coverage does exactly that--it "adds" to the at-fault party's liability coverage. Using our earlier example, if the at-fault party only had $25,000 in liability coverage and you only had $25,000 in uninsured coverage, you would be able to obtain your $25,000 in uninsured coverage if your damages warranted it.

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Why then do people choose reduced coverage instead of added-on? Most people don't realize the difference and insurance companies rarely give explicit explanations concerning the two choices because reduced coverage is more beneficial to them. In contrast, the cost to a consumer between the two choices is often negligible (even as low as a dollar or two), especially considering the potential ramifications.

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Duty to Give Notice

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You have to give notice to your uninsured motorist insurer after a crash. Most people involved in a crash that is not their fault do not consider informing their own insurance company. However, failing to do so can cause you to lose future access to your uninsured motorist coverage. This is because all contracts for uninsured motorist insurance have requirements that notice of the crash be given to the company within a certain amount of time. This time requirement varies depending on the company, but some can be as short as one week, while others can be as vague as "within a reasonable amount of time."

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When in doubt, even if you don't know whether or not you'll need your coverage, it's better to report the crash and put your company on notice. There is no penalty for informing them you were involved in a crash that was someone else's fault.
 

Just Ask an Attorney

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Some people are lucky enough never to be involved in a car crash in their life. Many will not be so lucky. When it happens, it can be a jarring and uncertain experience for those who are unprepared. Even more so if you've been injured as a result. Unfortunately, the insurance company that you've been paying your premiums to will often be less than understanding and will not hesitate to deny coverage if you make an honest mistake.

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Don't be put into a situation where you're taken advantage of.

So before it happens, just #AskAnAttorney

 

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