What is uninsured motorist coverage and do I need it?
Uninsured motorist coverage, often called UM, pays for your injuries and sometimes your vehicle damage when you are hit by a driver who has no insurance or not enough of it. It is some of the most valuable coverage on an auto policy, and a large share of Georgia drivers carry only the bare legal minimum or no insurance at all.
What is the difference between uninsured motorist and underinsured motorist coverage?
There are two parts most drivers care about:
- Uninsured motorist (UM): covers you when the at-fault driver has no insurance at all.
- Underinsured motorist (UIM): covers you when the at-fault driver has insurance, but their limits are too low to pay for your injuries.
In Georgia, insurers must offer UM coverage, and you can reject it only in writing. That requirement reflects how important the state considers this protection. Georgia’s minimum liability limit is just $25,000 per person for bodily injury, so if you are seriously hurt by a driver carrying only the minimum, their policy can run out quickly and leave you with large medical bills.
Why does Georgia’s minimum liability limit make uninsured motorist coverage so important?
For example, you are stopped at a light in Atlanta and a driver rear-ends you, causing $120,000 in medical bills from a back injury and surgery. The at-fault driver has the state-minimum $25,000 in coverage. Without UM/UIM, you would be left with a $95,000 gap to pursue through the courts, often with little to recover. With $100,000 in underinsured motorist coverage, your own policy steps in and covers that gap, so you are not financially ruined by someone else’s thin coverage.
What is the difference between reduced and added-on uninsured motorist coverage in Georgia?
Georgia offers two versions of UM/UIM. Reduced UM, also called offset, subtracts the at-fault driver’s limits from what your policy pays. Added-on UM, also called stacking, places your UM limit on top of the other driver’s limits for more total protection. Added-on costs a little more but pays more, because the limit sits on top of the at-fault driver’s limits instead of being offset by them. For example, if the at-fault driver has $25,000 in coverage and you have $100,000 in added-on UM, your total available recovery is $125,000. With reduced UM, your total available recovery stays at $100,000 because the at-fault driver’s $25,000 is subtracted first.
How do I know if my current auto policy includes uninsured motorist coverage?
Check the declarations page of your current auto policy, which lists each coverage and its limit. If UM/UIM does not appear there, or if the limits seem low relative to what a serious accident could cost, a free coverage review is where a licensed advisor confirms your uninsured motorist limits and how they line up with your household. On most auto policies the cost of UM/UIM is modest relative to the protection it provides, which is part of why Georgia lets drivers reject it only in writing.