Georgia Legal Guide: The Limited Release – Maximizing Your Recovery After a Car Accident

Table of Contents

Is it possible to use your underinsured motorist coverage if you settle with the other driver’s insurance company? The answer is yes, and it can help you get the compensation you deserve for your injuries. But the path to this solution can be complicated.

A limited release allows you to settle with the at-fault driver's insurance while still pursuing your own underinsured motorist (UM) coverage. While your UM insurer cannot prevent you from entering into a release (for any policy issued after July 1, 1994), there are still several requirements that must be met.

What Is a Limited Release?

A limited release is a special type of settlement agreement created by Georgia law (O.C.G.A. § 33-24-41.1) that allows you to settle with the at-fault driver's insurance company while still preserving your right to collect from your own underinsured motorist coverage.

Before this law existed, injured people faced a frustrating choice. If you settled with the at-fault driver's insurer, you typically gave up your right to pursue any other claims against that driver, including claims under your own UM coverage. This forced people to either take a quick but inadequate settlement or go through the lengthy process of getting a court judgment before they could access their own UM coverage.

Today, it is possible to get a limited release and pursue coverage under both policies. However, the at-fault driver's insurance must pay their complete policy limits (not a partial amount) for the limited release to be legally valid. Moreover, if several people were hurt in the same accident, they must agree in writing on how to divide the available insurance money.

How Does a Limited Release Work?

Like other types of settlements, a limited release “releases” the at-fault driver’s insurance from further liability related to the accident. Unlike other releases, it does not prevent the injured person from pursuing other parties for these same claims or the insurer from seeking reimbursement from the at-fault driver.

What the limited release protects:

• The at-fault driver's personal assets (house, savings, etc.)
• The settling insurance company from any further claims related to this accident

What you can still pursue:

• Your own underinsured motorist coverage
• Claims against other at-fault parties not named in the release
• Claims under other insurance policies

What insurance companies keep:

• The right to seek reimbursement from the at-fault driver (subrogation rights)
• Their other duties under the insurance policy

Why This Matters When You Have Been Injured

With the limited release law, you are not left to choose between getting some money now or potentially getting full compensation later. You can secure payment from the at-fault driver's insurance while still pursuing the full amount of the damages you are owed through your own coverage.

This is especially important because:

• Many drivers in Georgia only carry minimum insurance coverage
• Serious injuries often result in damages far exceeding these minimum limits
• You pay for UM coverage specifically to protect yourself in these situations
• You could get the maximum possible recovery for your injuries

Hypothetical Examples: Intersection Accident in McDonough

Example 1: Tomás and Hayley  

Tomás is driving to pick up his daughter from soccer practice at the Henry County Soccer Complex when Hayley runs a red light and crashes into the driver’s side of his car. Tomás suffers serious injuries including a broken back that requires surgery, months of physical therapy, and keeps him out of work for half a year.

His total damages (medical bills, lost wages, and pain and suffering) amount to $150,000. But Hayley, only has Georgia's minimum liability coverage of $25,000 per person. Tomás on the other hand, has a $100,000 UM policy.

If he enters into a limited release with Hayley’s insurance, the following could happen:

• Tomás receives the full $25,000 policy limit from Hayley’s insurer
• Hayley is released from personal liability
• Tomás can then pursue his own UM coverage to recover additional compensation.

Example 2: Tomás, Sonja, and Hayley   

In this scenario, Tomás made it to the Soccer Complex and is driving home with his daughter, Sonja. Hayley runs the same red light, but hits the passenger side, seriously injuring both Sonja and Tomás.

Tomás’ damages are $100,000 and Sonja’s are $150,000 ($250,000 total). Hayley’s policy still only covers $25,000 per person with $50,000 total per accident.

Since there are multiple claimants, they must agree to divide the $50,000 total limit in order to secure a limited release. In this case, Sonja (through her parents) and Tomás agreed that Sonja gets $30,000 and Tomás gets $20,000 based on their damages.

After signing the limited release, both are able to pursue compensation through Tomás’ UM coverage and Hayley will released from personal liability (but not subrogation) through a Limited Liability Release.

What If I Need to Go to Court for My UM Claim?

If your insurance company refuses to pay on your UM claim or does not offer a fair settlement, you may need to file a lawsuit and go to court. If this occurs, the jury will not be told about the limited release or the damages you were already paid by the at-fault driver’s insurance company.

After a jury enters a verdict and decides the damages you are entitled to, the court will then subtract what you received under the limited release from this award.

The Bottom Line: Limited Releases and Maximizing Your Compensation

If you were seriously injured by a driver with minimal insurance coverage, you do not necessarily need to choose between taking a small settlement or waiting on full compensation. While every situation differs, Georgia's limited release law was designed to help people in exactly your situation get the money they need and deserve.