How You Can Collect UIM/UM (Under-Insured Motorist Coverage) After a Georgia Car Accident

Key Points

• In the State of Georgia, underinsured motorist (UIM) coverage protects you financially if you are injured in an accident caused by a driver who has insufficient liability insurance to cover your medical costs and other losses.
• Uninsured motorist (UM) coverage, protects you if you are hit by a driver who has no insurance coverage at all.
• Though UIM and UM coverage is not required in Georgia, insurance companies are required to offer it to policy holders in the same amount as the liability coverage purchased unless you have signed a waiver rejecting UM/UIM coverage or accepting lower limits.
• If you do not know whether you have UM or UIM coverage, The Millar Law firm will review your coverage for free at no charge during our initial consultation.

When evaluating your Georgia UIM or UM claim and determining how much to offer you in a settlement, the insurance company will consider factors such as the severity of your injuries, your medical bills and other economic losses, your pain and suffering, the at-fault driver’s coverage limits, and your own UIM insurance coverage limits.

Table of Contents

Why Do Georgia Car Accident Lawyers Encourage Every Driver to Carry Uninsured and Underinsured Coverage?

Car and truck accident attorneys encourage everyone to carry uninsured (UM) and underinsured (UIM) coverage to protect yourself from drivers who are not insured, or are insured to small policy limits. Unfortunately, many drivers in Georgia are not insured or are woefully underinsured and both types of policies can cover you for a wide range of unexpected costs and compensation, including medical bills, lost wages, pain and suffering, rental car expenses, and more. Having UM/UIM coverage is often essential in obtaining full compensation for claims.

Car accident attorneys know what a nightmare it can be for people who suffer serious injuries at the hands of uninsured and underinsured drivers. If you are involved in an accident caused by a driver with no insurance or insufficient insurance, you may end up paying those costs out of your own pocket.

Are Uninsured and Underinsured Motorist Coverage Required in Georgia?

Under Georgia law, all automobile insurers in the state must offer UM and UIM motorist coverage to policyholders. However, there is no legal requirment that policy holders purchase this coverage. It is an excellent idea to have UIM coverage to protect you and your family financially if you are injured in an accident caused by a driver who has insufficient liability insurance to cover your medical costs and other losses.

What are Georgia’s Minimum Liability and UM/UIM Insurance Limits for Cars and Personal Trucks?

The minimum coverage limits are:

• $25,000 per person
• $50,000 per accident for bodily injuries
• $25,000 in property damage with a $250, $500, or $1,000 deductible

You may choose to purchase UM/UIM motorist coverage along with your liability policy. In Georgia UIM/UM will be sold in amounts that match your liability coverage, unless you sign a form electing to waive coverage or to select and purchase lower UM/UIM limits.

How Does Georgia Uninsured and Underinsurance Coverage Work?

A UIM/UM policy can cover you, anyone specifically named in the policy, passengers in your vehicle, and relatives living in your home. It applies to many car and truck accident scenarios, including:

• Hit-and-run collisions
• Accidents where the at-fault driver is uninsured or underinsured for the victim’s damages
• Accidents where the at-fault driver has insurance, but the insurance carrier denies coverage or is insolvent
• Accidents where the at-fault driver and/or their employer is immune from liability

According to the Insurance Information Institute, it is estimated that about 12% of Georgia drivers have no liability insurance. If you are injured by a driver who doesn’t have enough liability insurance to cover your medical bills and other losses, having UM/UIM bundled in your auto policy can help with your financial and emotional recovery.

Georgia mandates that UIM/UM coverage be offered in two types. These are called “add-on” and “offsetting” coverage.

Add-on coverage adds additional coverage over the policy limit of the at-fault driver’s liability policy. For example, if you are injured in an accident caused by a driver who has $25,000 in liability coverage but your claim is valued at $50,000, their insurance company is only required to pay you $25,000. But if you have purchased $50,000 in UM/UIM coverage, your claim is insuredf for a total of $75,000.

Offsetting UIM/UM coverage is reduced by the amount of the at-fault drivers insurance limit. For example, if the at-fault driver has a $25,000 liability policy, and the claim is worth more than $25,000, and you have purchased $50,000 in UIM coverage, you can recover up to an additional $25,000 from your UIM policy.

How Does UM/UIM Coverage Interact with Other Types of Insurance?

If the driver who caused the accident carries liability insurance, you must file a claim against their insurance policy before filing a claim against your own UM/UIM policy. Your insurance company will require the other driver’s carrier to exhaust the policy limit, or pay out the full amount allowed, before paying the remaining case value out of your policy. If the at-fault driver has no insurance, you can recover directly from your UM/UIM policy.

How Is the Value of a UM/UIM Claim Determined?

When evaluating your UM/UIM claim and determining how much to offer you in a settlement, your insurance company will consider factors such as:

The severity of your injuries

• Your medical bills and other economic losses
• Your pain and suffering
• The at-fault driver’s coverage limits
• Your own UM/UIM insurance coverage limits
• Generally, the higher your costs, the higher the value of your claim.

If the at-fault driver has auto insurance, your legal claim will go through the normal process of settling with their insurance company. Once the at-fault driver’s policy limits are hit, then your attorney will contact your insurance company to request the remaining amount of your claim be paid by your UIM/UM coverage.

If the other driver does not have insurance or your case value exceeds the driver’s policy limit, the amount you will receive for your UM/UIM claim is limited by how much coverage you purchased.

How Can I Make Sure My UM/UIM Claim Is Not Denied or Undervalued?

Because insurance companies are in the business of making money, they are often reluctant to pay out the full value of UM/UIM claims. To ensure that your claim is handled properly and you receive the settlement you deserve, you will need to document your injuries and keep track of all your medical bills, lost wage statements, and other records related to your claim.

Immediately after the crash:

• Contact the police and ensure that a police report is filed
• Collect contact and insurance information from all parties
• Take pictures of the vehicles and any injuries
• Seek medical attention
• Notify your insurance company

Your car accident attorney can collect all the necessary evidence for you and send a demand letter to the insurance company. If your claim is denied or the insurer offers a low settlement, your attorney can negotiate with them to get maximum compensation. If need be, your attorney can help you appeal the insurance decision and, if necessary, file a lawsuit against the company.

What Are Some Common Misperceptions about UM/UIM Coverage?

Many people think they do not need UM/UIM coverage because:

They already have health insurance. However, UM/UIM coverage pays for many things health insurance does not cover, such as lost wages and pain and suffering. UM/UIM also covers the medical bills of your passengers and other relatives living in your household.

They think it is too expensive. However, the cost of UIM coverage is outweighed by the financial protection it provides. You can choose the amount of coverage based on your budget.

They think it will only pay out if they are hurt by an uninsured driver. However, UIM coverage can also pay out if the at-fault driver has insurance, but it is not enough to cover your losses.

They think they are protected by Georgia law that requires all drivers to carry insurance. Unfortunately, some Georgia drivers do not have liability insurance despite the law.

How Can I Check to See Whether I Have UM/UIM Coverage?

If you are unsure whether you have UM/UIM coverage in your insurance policy, you can contact your insurance agent to see how much, if any, coverage you have. You can also review your policy information online to see the amount of UM/UIM coverage you carry. Make sure to check your limits and exclusions to fully understand your coverage.

When Can an Insurance Carrier Exclude UM/UIM Coverage?

The exclusions in your insurance coverage can vary depending on the terms of the policy, but most insurers will exclude UM/UIM coverage if you were at fault in causing the accident.

If your policy excludes coverage, your insurer may deny or reduce your claim. One of our attorneys can help you understand your policy and determine whether your insurer is allowed to deny UM/UIM coverage based on the facts of your case.

What Penalties Might an Insurance Carrier Face for Bad Faith Failure to Pay a UM or UIM claim?

Under Georgia law, an uninsured motorist insurance carrier can face a number of penalties for bad faith refusal to pay a claim. These penalties include:

• Payment of the insured’s actual damages, plus interest
• Payment of the insured’s reasonable attorney’s fees
• Payment of a penalty of up to 25% of the insured’s damages

A finding that the insurance company acted in bad faith. This can hurt the company’s reputation and make it difficult for them to attract new customers.

To recover these penalties, you will usually need to file a lawsuit against the insurance company. The lawsuit must show that the insurance company acted in bad faith by refusing to pay your claim. If the lawsuit is successful, the court will award you the damages you are owed plus interest, your attorney’s fees, and a penalty. Insurance companies have a duty to act in good faith towards the people they insure.  If they fail to meet this duty, then you may have a case against them.