Insurance Assurance For A Less Crowded, More Dangerous Road

As personal injury attorneys, our goals above all else are to (1) provide our client a pathway in returning as close to normal as possible and (2) ensure that our client is made whole again. Injuries are expensive, whether they happen at work or out on the roads. The annoyance of rental cars, inconvenience of body repairs, or devastation caused by serious bodily injury are all made much easier when insurance takes care of the bill.

Unfortunately, hurdles pop up far too often on the way to recovering from opposing parties’ insurance policies. However, with the right coverage, you are much more likely to be made whole after an injury.

The state of Georgia follows an “at-fault” insurance model, meaning that individuals harmed in an accident turn to the at-fault driver for compensation. This is the reason Georgia mandates auto coverage with set minimums on all policies. These minimums include $25,000 per person and $50,000 per accident for a bodily injury, along with $25,000 for property damage coverage. While drivers can reject a third form of coverage, uninsured motorist (UM), we at Powell & Edwards highly recommend all drivers include UM coverage with their policies – for a few reasons.

The UM coverage provides two critical forms of protection. First, as the name suggests, it protects those who are injured by an uninsured driver. While minimum levels of car insurance are required by law, not every driver chooses to abide by it. An “uninsured motorist” can also include a hit-and-run driver. If you are in an accident with someone who flees the scene before you can gather information about them, making a claim against their insurance is practically impossible. Thankfully, UM coverage addresses that scenario.

Second, while UM can stand for “uninsured motorist” it can also refer to an “underinsured motorist.” The state minimum insurance figures listed above sound like decent amounts of money, though a serious personal injury case can burn through those amounts in a matter of days. This additional coverage provides critical protection by offering another pot of money once the at-fault driver’s policy limits are exhausted.

It is important to note that some UM policies are diminished by the at-fault driver’s own insurance, meaning if you have $50,000 in UM coverage and the at-fault driver’s liability policy is $25,000.00, you will only be able to recover $25,000 from your policy carrier.  Other UM policies stack on top of the at-fault driver’s liability policy, meaning in the above scenario you would have a $75,000 limit after combining the at-fault driver’s liability coverage and your UM limit. This significant distinction requires an analysis of one’s policy or a discussion with an insurance agent.

For most people, the two highest expenditures in their annual budgets involve healthcare and the ownership of automobiles. Car accidents can often involve exorbitant expenses in both categories. The average price of a new car in the U.S. is approximately $40,000, and even a short ride in an ambulance can be a four-figure expense before treatment even begins.  

No one wants to be in an accident. Beyond the day-of difficulties, exhausting the at-fault party’s insurance limits down the road could leave you without a way to cover your expenses. It is not fair that you could do nothing wrong yet still must pay out of pocket, but the best way to protect yourself is to speak with your insurance agent today about UM coverage.