Quick Definition: Uninsured and Underinsured Motorist Coverage offset the costs of a car crash if the negligent driver does not have insurance coverage or does not have enough insurance coverage to meet your needs.
There are two types of UM/UIM Coverage:
- Add-On Coverage – This means you stack your UM/UIM coverage on top of the negligent driver’s insurance coverage. For example, if the negligent driver’s insurance coverage is $50,000.00 and you have $50,000.00 in UM/UIM Coverage you can stack both policies on top of each other giving you $100,000.00 in available coverage.
- Reduced By Coverage – With this type of coverage, you can only use UM/UIM coverage to the extent that it is more than the negligent driver’s liability limits. For example, if the negligent driver’s insurance coverage is $50,000.00 and you have $50,000.00 in UM/UIM Coverage you cannot stack both policies and you have only the $50,000.00 in available coverage from the negligent driver’s policy.
Do All Policies Have UM/UIM Coverage?
In the state of Georgia, UM and UIM Coverage are not required. However, the insurance company must have you sign a written rejection.
Under Georgia Law OCGA Section 33-24-35(c) your insurance company cannot cancel your policy or non-renew you unless you have three or more not at fault accidents or UM/UIM claims in the preceding 36 months.
Helpful UM/UIM Tips
- Notice – You must put the UM/UIM Carrier on notice of the automobile collision as soon as possible.
- If you are struck by a vehicle as a pedestrian your UM/UIM Coverage will still cover your injuries
- When settling with the liability carrier if you plan to pursue a UM/UIM Claim you must seek a Limited Liability Release.
- You must cooperate with the insurance company when they request recorded statements or make other requests. However you may seek legal representation prior to completing the recorded statements and other requests. You are permitted to have counsel representation on the call.
Have you or a loved one been injured in an automobile collision or suffered and injury due to someone else’s negligence? Lamar Law Office, LLC offers a free consultation. At Lamar Law Office, LLC we truly care about each and every client. Fill out the form on this website or call us at 678-819-5200 or 877-CARE-404 to get your FREE consultation today. You can even send a text. If you are without transportation then we will come to you.« Back to Glossary Index