Uninsured Motorist (UIM) is part of every auto policy in Georgia (and most other states too). It covers you and anyone in your car during an accident when you are hit by a hit and run driver, a driver that does not have automobile insurance, or a driver that does not have enough coverage. At the end of 2008 the Georgia General Assembly passed Senate Bill 276 (effective January 1, 2009). Now, insured’s can choose to elect one of two different Uninsured Motorist coverages, “Traditional” (some companies are calling this “Reduced”) or “Added On”.
Traditional coverage provides that you will have coverage UP TO your policy limits, regardless of the coverage of the person that hit you.
Example: You are rear ended at a stop sign
- Total damage is $150,000
- At fault driver has $50,000 in liability coverage
- Your policy has $100,000 in Uninsured Motorist coverage (Traditional)
- You will receive a TOTAL of $100,000 (50k from the other person’s insurance and 50k from your insurance).
Added On Uninsured Motorist coverage provides coverage IN ADDITION to the coverage of the person that hit you.
Same example above: You are rear ended at a stop sign
- Total damage is $150,000
- At fault driver has $50,000 in liability coverage
- Your policy has $100,000 in Uninsured Motorist coverage (Added On)
- You will receive a TOTAL of $150,000 (50K from the other person’s insurance PLUS 100k from your insurance)
Added On Uninsured Motorist coverage is more expensive than Traditional coverage (since, in some cases the insurance company will have to pay out more). We know of several companies that changed their insured’s coverage by default, even though they may not have desired this increased coverage. It is important to review your insurance documents and the level of coverage that you have.
When choosing the amount of Uninsured Motorist coverage, keep in mind, Georgia‘s minimum coverage laws allow people to drive with only $25,000 of coverage.
- This part of your auto insurance policy protects YOU.
While each person’s situation is different, most of our clients have at least $100,000 of Uninsured Motorist coverage…….
