Let’s say you are involved in a motorcycle or car accident that was the fault of another driver. In that situation, you have the option to claim damages against the at-fault party’s insurance company. Georgia law mandates that drivers carry liability insurance covering personal injury and property damage.
However, some drivers who cause collisions frequently lack insurance. Sometimes, the driver of the car involved in the crash will flee the scene, leaving you with no one to hold accountable.
Georgia law mandates that insurance companies offer Uninsured Motorist coverage to address these circumstances. The law does not, however, mandate that car owners buy it.
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Underinsured and Uninsured Motorists
A road user who is illegally driving without property and bodily damage liability insurance is known as an uninsured driver. A person whose insurance company declined to give coverage owing to insufficient liability proof may also be considered an uninsured driver.
An underinsured driver, on the other hand, has insurance. Still, the coverage is insufficient to pay for all the economic and non-economic losses suffered by the injured party.
After car accidents caused by careless uninsured drivers, injured parties are helped by uninsured motorist (UM) coverage. This policy will cover the difference between the injured party’s damages and the underinsured driver’s coverage if the at-fault party has insufficient insurance.
Read Also: When Someone Else Drives Your Car and Gets in an Accident
Minimum Liability Coverage According to Georgia Law
Let’s say you are involved in an automobile accident that was someone else’s responsibility, and you suffer personal injuries, vehicle damage, and other financial losses like medical expenses. Your primary source of reimbursement in this situation should be the at-fault driver’s liability insurance.
According to Georgian legislation, all drivers must have liability insurance that meets the following requirements:
- $25,000 per person and $50,000 per occurrence is the maximum liability for bodily injury
- Liability for Property Damage: $25,000 per incident
In Georgia, a driver complies with the law if their liability insurance fulfills certain minimum standards. These coverages, however, might not be sufficient to indemnify you and other injured parties for your damages in serious collisions involving several vehicles and other road users.
Uninsured Motorist Coverage: What You Need to Know
Uninsured motorists frequently lack the resources necessary to cover the costs of repairing damages caused by their actions. UM coverage is also applicable in hit-and-run accidents where the at-fault party cannot be identified. Even if you were not at fault for the accident, any damages you experience might not be reimbursed if you don’t have UM coverage.
Costly therapies are needed for severe injuries like cardiac arrest and traumatic brain damage. Your ability to earn a living can be impacted by permanent disability. These damages may negatively impact your financial stability if you are not compensated for them.
The state does not require road users to have Uninsured Motorist coverage. But whether you’re a driver, a bicycle, or a pedestrian, the range is available to you as a road user.
Additionally, the policyholder’s family members, including their spouse and children, are covered.
Consider a scenario where the policyholder and spouse travel by car when an uninsured driver strikes you. In this situation, your UM coverage may cover your injuries and your spouse’s medical expenses.
Your policy may also provide UM benefits to anyone who operates your insured vehicle with your knowledge or consent. This also applies to visitors who are traveling with you.
Uninsured Motorist Coverage: Two Types of Coverage
There are two forms of uninsured motorist insurance available in Georgia:
- Non-stacking coverage: If your UM scope exceeds the at-fault driver’s liability insurance limitations, “reduction” coverage is offered. The UM compensation in this scenario will be equal to your UM coverage, less the at-fault party’s liability coverage.
For instance, if your non-stacking UM coverage is $60,000 and the at-fault party’s coverage is $25,000, your available UM coverage is $35,000. The $60,000 will be yours to keep under UM coverage if the at-fault driver has no insurance.
You are not eligible for a UM award if your non-stack UM coverage exceeds the at-fault driver’s liability coverage.
- Coverage stacking: In addition to the at-fault driver’s liability insurance, you can purchase “add-on” UM insurance. In other words, you can “stack” your UM coverage with the other party’s liability coverage to pay for your damages.
As an illustration, let’s say your UM coverage is $50,000, and the at-fault party has $25,000 in liability coverage. You are eligible to receive up to $75,000 in compensation in this situation.
Relying on Health Insurance Coverage
Georgia drivers frequently forego uninsured motorist protection because they believe their health insurance will pay for any injuries they sustain in an accident. While it is true that your health insurance may pay for some of the medical care you receive after a car accident, you would still be responsible for your copays and health insurance deductible. According to some regulations, these costs could reach thousands of dollars.
Additionally, only medical-related charges are covered by your health insurance. You might need to seek compensation for vehicle damage after a collision. You might also need to claim lost wages if your injury left you disabled and prevented you from working.
Thanks to Georgia’s Uninsured Motorist coverage law, you can pay for these damages and lessen the effect the accident will have on your financial circumstances.
Be Sure to Seek Legal Help After an Accident Involving an Uninsured Driver
Many drivers in Georgia might not be aware that they have uninsured motorist coverage. To learn more, consult the declarations page of your insurance policy. You can formally renounce your uninsured motorist coverage if you change your mind.
