In some states, filing an uninsured motorist claim will cause an increase in premiums, but luckily that isn’t the case in Georgia. Georgia law prohibits insurers from raising rates on auto insurance policies when the policyholder is not at fault for the accident, even in cases where the at-fault driver is uninsured.
However, in order to recover compensation, you’ll need to prove that you have adequate uninsured/underinsured motorist coverage.
Atlanta car accident lawyer Mike Rafi has years of experience helping injured people recover compensation in accidents that were not their fault. To schedule your free consultation, contact Mike online or call him at (404) 800-9933.
In the meantime, continue reading to learn more about uninsured/underinsured motorist coverage and the different ways it may be used in an accident.
Georgia law regarding insurance claims
Georgia law makes it very clear that your insurer cannot penalize you for filing a claim if you were in an accident caused by an uninsured or underinsured motorist. They can’t increase your premiums, cancel your policy, or refuse to renew your policy.
There’s nothing to lose by filing a claim, but you may be eligible for additional compensation if you have coverage for that type of accident.
Purpose of uninsured motorist coverage
Uninsured motorist/underinsured motorist (UM/UIM) insurance coverage is meant to protect you if you’re involved in a wreck caused by someone who chose to drive without insurance or if their policy limits are insufficient to cover your damages.
Although the coverage itself will result in a higher premium, it’s highly recommended that you purchase it because Georgia only requires that drivers carry minimum policy limits of:
- $25,000 per person per accident or $50,000 total per accident for bodily injury which is intended to cover the medical bills for any injuries sustained in the accident, and
- $25,000 for property damage per accident
Types of uninsured motorist coverage
UM/UIM coverage is optional, but it has potentially significant benefits as it can cover your injuries and those for any passengers of your vehicle at the time of the accident if it was caused by someone who doesn’t have insurance, doesn’t have enough coverage (is underinsured), or if the at-fault driver can’t be located.
The application of UM/UIM coverage depends on your policy’s specific terms, but it can be used as either “offset” or “add-on” coverage.
Offset UM/UIM coverage
Offset coverage is often referred to as “reduction” coverage because the amount of coverage available to you under your UM/UIM policy is offset or reduced by the amount of bodily injury coverage the at-fault driver carries if they’re underinsured. However, if the driver is uninsured, your UM/UIM coverage can be used without any reduction.
Here are a couple examples of how offset coverage can be applied:
- If the driver’s bodily injury limit is $50,000 per person, and that’s also the limit of your UM/UIM policy, then the offset amount is $0. This means that you’ll be limited to the at-fault driver’s $50,000 in coverage for any injuries you may have suffered in the accident.
- If you have $75,000 in UM/UIM coverage and the at-fault driver carried $50,000 in bodily injury coverage, then after subtracting their limits from yours, you’ll have $25,000 in additional coverage through your policy to cover your medical bills.
Add-on UM/UIM coverage
Your policy might allow you to “add-on” your UM/UIM coverage to the policy limits of the at-fault driver. Some refer to it as “excess” coverage because you’ll always have funds above and beyond the driver’s policy limits. Here’s an example of how add-on coverage is used:
- Your $50,000 of UM/UIM coverage gets added to the at-fault driver’s $50,000 in bodily injury coverage, so you now have $100,000 in coverage available to you in the event you need it.
Speak with attorney Mike Rafi to learn more
If you were hurt in a wreck caused by an uninsured or underinsured driver, get in touch with attorney Mike Rafi as soon as possible. Mike will review your policy and can help you file a claim for compensation to cover your damages.
Contact Mike online or call (404) 800-9933 to schedule your free consultation to learn more.
