Understanding Georgia Auto Insurance and UM Insurance

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If you have been involved in an automobile accident, it is crucial to have an attorney that understands Georgia auto insurance coverage. When another driver is at fault for an auto accident, the money you are able to recover could be severely limited by the insurance policies that cover the accident and the limits of those policies.

Before you are ever involved in a car accident, you should strongly consider purchasing additional and optional coverages that could help your recovery if an at-fault driver with minimum coverage injures you. To learn more about insurance coverages that can help you in the event of an accident call our office.

Liability Insurance

Georgia law requires every driver to maintain certain minimum liability insurance coverage. You can read more about the minimum requirements at the Georgia Insurance Commissioner’s website. Georgia law O.C.G.A. § 33-34-4 requires liability insurance to protect other drivers in the event the insured person is at fault for an auto accident.

Liability insurance protects other drivers in the event the insured person is at fault in an accident. It is a one-time settlement or payment for all of your damages.
The minimum coverage required insurance a Georgia driver must have is (O.C.G.A. §33-7-11 (A)(1)(a)):

  • $25,000 for bodily injury or death of one person in a single accident
  • $50,000 for bodily injury or death of more than one person in a single accident
  • $25,000 for injury or harm to the property of others in a single accident

Generally, it is advisable to carry higher coverages. If your damages exceed the policy limits, the at-fault driver can be held personally responsible for the difference.

Uninsured and Underinsured Motorist Coverage

Unfortunately, sometimes an injured party’s damages may exceed the at fault driver’s insurance coverage or the at fault driver may violate Georgia law and not have any insurance at all. When this occurs, it is important to have Uninsured or Underinsured Motorist (UM or UIM) coverage.
Georgia does not require UM coverage. It is an optional coverage available for purchase in case the at-fault driver has no insurance coverage or carries an amount of coverage insufficient to cover all of your damages resulting from the accident.

UM coverage is divided in two categories:

  1. Add-on Coverage – Add on coverage allows stacking of coverages. Stacking means you may collect the UM coverage in addition to the liability coverage of the at-fault driver. For example, if the at-fault driver has $25,000 in liability coverage, you have $25,000 in UM coverage and your damages exceed the liability coverage, then you can “stack” your UM to receive up to $50,000.
  2. Reduced-by Coverage (also called “difference in limits”) – Reduced by coverage is non-stacking. Non-stacking means the UM coverage cannot be added to the liability insurance of the at-fault driver. For example, if the UM reduced by policy is $100,000 and the at-fault driver carries a state minimum $25,000 liability policy, your UM is reduced by the liability coverage ($100,000 less $25,000) leaving you with $75,000 in UM coverage.

Georgia requires auto insurance companies to offer UM coverage. The default option for UM coverage is “add-on” coverage. If you elect not to have UM coverage, you must put your selection in writing to the insurance company. We strongly recommend that all drivers carry add-on UM coverage to protect themselves in the event of a serious accident with a minimally insured driver.

Medical Payments Coverage

Medical payments coverage (med-pay or MPC) is another optional insurance that is not required by Georgia law. You might also see med-pay referred to as personal insurance protection (PIP). Med-pay is available to the person holding the coverage and any passengers in the insured’s vehicle, regardless of the fault of the driver.

Med-pay coverage is a great way to help have your medical bills paid for in the event of an accident.

Nick Martin
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