Car accidents involving uninsured drivers can leave those injured facing significant financial burdens. In Georgia, uninsured motorist (UM) coverage provides a safety net to ensure compensation for damages when the at-fault driver lacks insurance.
Understanding how UM coverage works is key to protecting your financial well-being after a crash.
What is uninsured motorist coverage?
Uninsured motorist coverage is an optional addition to your auto insurance policy in Georgia. It covers medical expenses, lost wages, and property damage caused by an uninsured or underinsured driver. Georgia law requires insurers to offer this coverage, but policyholders must actively choose to include it.
There are two types: add-on and reduced-by coverage. Add-on UM coverage stacks on top of the at-fault driver’s policy, while reduced-by coverage subtracts any available at-fault driver’s insurance from the UM policy limit.
When does UM coverage apply?
UM coverage applies when the at-fault driver has no insurance or whose policy limits are too low to fully cover the damages. It also covers hit-and-run accidents where the responsible driver cannot be identified. In Georgia, policyholders must file a claim with their own insurance company to access UM benefits.
How does UM coverage affect compensation?
UM coverage provides an additional source of compensation for medical bills, lost income, and property repair costs. For example, if an at-fault driver’s insurance covers only a portion of the damages, UM coverage can fill the gap up to the policy limit. Georgia’s add-on UM coverage offers more robust protection by allowing injured parties to receive compensation from both their UM policy and the at-fault driver’s insurance.
Stay prepared for the unexpected
Understanding and including uninsured motorist coverage in your auto insurance policy offers peace of mind. It ensures that you can recover financially even when an at-fault driver fails to meet their insurance obligations. Preparing for the unexpected now can save stress and hardship later.