Car accidents are stressful enough but discovering that the at-fault driver is uninsured adds another layer of frustration. In Georgia, drivers are legally required to carry liability insurance with minimum coverage of $25,000. Unfortunately, many disobey the law, leaving accident victims in a challenging position. A study done in 2023 by the Insurance Research Council (IRC) determined that 14% of motorists, which is one out of every seven drivers, are driving uninsured. Georgia is ranked 7th, on the top ten list for highest uninsured motorists in 2022, meaning an astonishing 18.1% of our drivers are uninsured!
If You Don’t Have Uninsured or Underinsured (UM/UIM) Motorist Coverage, You and Your Family Could be at Risk.
In the event of an accident with an uninsured, or underinsured, driver, you could be left with a damaged or totaled vehicle, injuries, mounting medical expenses, lost wages, and no way to financially recover. This could also be true in the event the at-fault party carries minimum coverage. In Georgia, drivers are only required to carry liability insurance with policy limit of $25,000. Therefore, if you are injured by a driver with a state minimum policy, it doesn’t matter if the vehicle you lost had a value of more then $25,000, or that your hospital bill alone exceeded that, the limits are just that, limits. Luckily, Georgia drivers can protect themselves from these scenarios by making sure they have uninsured or underinsured (UM/UIM) motorist coverage added to their auto insurance policy. UM/UIM coverage not only provides coverage for your vehicle, but also your medical expenses, lost wages, as well as your pain and suffering. While this coverage comes at an added cost, it is one you will be glad you paid should you need it. As injury attorneys, we recommend all Georgia drivers carry UM/UIM coverage.
What Type of UM/UIM Coverage Do I Need and How Much?
When it comes to UM/UIM coverage, some policies stack, but most don’t, and the coverage can either be added-on or reduced-by, makes sense, right? Insurance is complicated, every company offers different types and amounts of coverage at varying prices. However, there is a growing misconception amongst Georgians that they can’t afford UM/UIM coverage when, in reality, they can, just not with their current carrier. Insurance policies generally renew every six months and these renewals often come with price hikes and premium increases, regardless of any changes, accidents or claims. In fact, experts recommend shopping around for insurance every six to twelve months. Therefore, if you are looking to add or increase your UM/UIM coverage, it may be time to shop around and get quotes from multiple carriers. Luckily, there are companies like Insurify and The Zebra, amongst others, that make this process easy by helping you get and compare multiple quotes at once. However, when comparing UM/UIM offerings, the type of coverage is just as important as the price, limits, and premiums. For example, even if two policies offer coverage with bodily injury limits of $25,000/$50,000, meaning $25,000 per person or $50,000 per accident, one policy may provide coverage that is “added-on” while the other “reduced-by”. While both options provide coverage where the at-fault driver is uninsured, depending on the limits and other policy factors, a “reduced-by” policy may not provide additional coverage where an at-fault driver is uninsured. In comparison, a policy that is “added-on” does as implied and adds to other available coverage.
Ultimately, what type of coverage to get and how much depends on various factors. It is important to think about not just what you can afford, but the types and amounts of coverage needed should the unthinkable happen. When evaluating your coverage options, here are some things to consider:
1. Vehicle Value. What is the fair market value of your vehicle and is there enough to ensure its repair or replacement in the event of a collision? Even where the at-fault party is insured, if your vehicle’s value exceeds $25,000, the state required insurance minimum, there may not be enough to repair or replace your vehicle.
2. Gap Insurance. Even with enough insurance to cover the fair market value of your vehicle in the event of a total loss, if your vehicle was financed and you owe more than it is worth, you could end up still owing money on a vehicle you can no longer drive. Gap insurance prevents this scenario and is something you should consider anytime you finance a vehicle. In addition to your auto insurance policy, gap insurance is often available through the dealership where your vehicle was purchased and/or the financing company.
3. Rental Coverage and Reimbursement. If you are like most Georgians and rely on your vehicle to earn a living, you may want to ensure your policy provides for a rental car or reimburses rental expenses.
4. Health Insurance. We get it, health insurance is expensive and for some it is a luxury they simply cannot afford. Unfortunately, following an accident, many Georgians find themselves without coverage to pay for necessary medical expenses, including surgery and recommended therapies. Luckily, adding UM/UIM coverage to your auto insurance policy is significantly cheaper than most health insurance premiums. Even if you have health insurance, co-pays and deductibles can be costly and, in some cases, you may be required to reimburse costs paid by your health insurance from any settlement or other funds recovered.
5. Medical Payments Coverages. Medical Payments coverage, or MedPay, is an additional coverage that contributes a set amount towards your medical expenses. Coverage limits generally range from $1,000 to $10,000 and can be used to cover medical bills or health insurance copays. However, Georgians with this coverage who initially treat at the hospital are finding their MedPay coverage exhausted without their knowledge or consent. If you are in an accident, injured, and have MedPay, acting quickly to ensure these funds are protected and properly distributed is critical.
6. Pain, Suffering, and Lost Quality of Life. A serious injury can affect more than just your wallet, it can also affect your activities of daily living and quality of life. In addition to the cost of medical case, Georgia accident victims are also entitled to recover damages for pain and suffering and lost quality of life. However, without sufficient insurance coverage there may be nothing to recover.
7. Lost Wages/Income. For many Georgians, missing time from work means missed income, which can have drastic financial consequences. If your ability to work or earn an income has been affected as a result of an accident, you may be able to recover, but like with pain and suffering, only where sufficient insurance limits are available.
As injury attorneys, we believe every client deserves full and complete compensation for their injuries and medical expenses. We work hard to get our clients the compensation they deserve. However, this ability is often limited by the amount of coverage available. Having to tell clients that they don’t have coverage or enough coverage to fully recover is not only heartbreaking, but one of the worst parts of what we do. We want all Georgia accident victims to have the ability to recover and after an accident is not the time to find out your coverage is insufficient. Check your auto insurance declaration’s page to make sure you are properly covered today and, if you aren’t, call your insurer and shop around until you find the best policy and coverage to fit your budget.
In the event the unthinkable happens, call Southside Injury Attorney for a free case evaluation.
Call us at 866-982-5295 or visit southsideinjuryattorneys.com/contact
