Uninsured Motorist (UM)
Uninsured motorist coverage (UM) protects you when you are injured in an accident caused by a driver who has no auto insurance at all, or by a hit-and-run driver who leaves the scene before you can get their information. Without UM coverage, your only recourse against an at-fault uninsured driver is to sue them personally, which is often fruitless since drivers without insurance typically also lack the assets to satisfy a judgment.
How common is the uninsured driver problem in Georgia?
Industry data consistently estimates that 12 to 14 percent of U.S. drivers have no auto insurance. In Georgia, the rate is similar to the national average. That means roughly one in eight drivers sharing the road with you at any given moment has no coverage to pay for the damage they cause.
For example, if an uninsured driver runs a red light and puts you in the hospital with $60,000 in medical bills and three months of missed work, UM coverage is the mechanism that pays your claim, not their nonexistent policy.
What does uninsured motorist coverage actually pay?
UM coverage applies to bodily injury (your medical expenses, lost wages, pain and suffering) and in some states also to property damage (your vehicle damage). Georgia requires insurers to offer UM coverage, and unless you sign a written rejection, it is included in your policy at limits that match your liability coverage. Georgia also allows policyholders to elect add-on UM, which pays your full UM limit in addition to any liability coverage the at-fault driver does carry, rather than offsetting the two.
Is it a mistake to reduce UM limits to save on premium?
Many policyholders accept a carrier’s offer to reduce UM limits to save premium without fully understanding what they are trading away. Reducing UM limits from $100,000 to $25,000 to save $80 per year is a poor trade in any market where uninsured drivers are common.
For example, a driver with $25,000 in UM coverage who suffers a herniated disc and two surgeries after being struck by an uninsured driver will exhaust their UM benefit long before their medical bills are paid.
How does UM coverage apply in hit-and-run accidents?
Hit-and-run scenarios are where UM becomes especially critical. If an unidentified driver sideswiped your parked car and fled, or a phantom vehicle caused you to swerve and crash, collision coverage handles your vehicle damage but UM bodily injury coverage handles your injury claim. Most policies require that a hit-and-run be reported to police promptly to be eligible for UM. File the report, document the scene, and notify your insurer the same day. The procedural requirements matter when a UM claim is involved.
How do I confirm my UM coverage is set up correctly?
A free coverage review is the right place to confirm whether your current UM limits, add-on election, and stacking options fit your situation. For a broader look at your auto coverage, see auto insurance options available through Olive Cover.