The Importance of Uninsured/Underinsured Insurance Coverage

The Importance of Uninsured/Underinsured Insurance Coverage

If you are a driver in Georgia, uninsured/underinsured motorist coverage is something that you should seriously consider when selecting an automobile insurance carrier. Although it is not mandatory, it is essential to have in the event of an accident where the wrongdoer does not have enough insurance to cover your injuries or has no insurance coverage at all.

There are three types of uninsured motorist coverage available to Georgia drivers: add-on/stackable, non-stackable/diminishing value, and no coverage. Let’s take a closer look at each of them.

Add-on/stackable uninsured motorist coverage allows you to add or stack the additional coverage on top of what the person who caused the accident has. For example, if you have $100,000 in UM coverage and the person who hit you has $50,000 worth of coverage, you can recover up to $150,000. This coverage is the most comprehensive and provides the most protection. It is recommended that you have at least $100,000 in UM coverage to protect yourself and your family.

Non-stackable/diminishing value uninsured motorist coverage allows you to have UM coverage, but it is reduced by the amount of coverage the person who caused the accident has. For example, if you have $100,000 in UM coverage and the person who hit you has $50,000 worth of coverage, your coverage will be reduced to $50,000. This coverage is less comprehensive than add-on/stackable coverage but is still a good option to consider.

No uninsured/underinsured coverage means that you will receive no compensation for your injuries if you are involved in an accident, and the wrongdoer’s insurance denies coverage or has no insurance coverage. This coverage is the least comprehensive and provides the least protection.

It is important to note that the minimum UM coverage available in Georgia is $25,000. However, it is recommended that you have at least $50,000 in coverage if $100,000 is not financially feasible.

In summary, uninsured/underinsured motorist coverage is essential to have in the event of an accident where the wrongdoer does not have enough insurance to compensate for your injuries or has no insurance coverage at all. Add-on/stackable coverage provides the most comprehensive protection, non-stackable/diminishing value coverage is less comprehensive but still a good option, and having no coverage is the least comprehensive and provides the least protection. It is recommended that you have at least $50,000 in UM coverage to protect yourself and your family.

By:  Shanelle Clarke, Esq.