Our state requires all drivers to have at least $25,000 in liability insurance. Liability insurance is what enables the other driver’s insurance company to pay you injury compensation in the event of an accident. Unfortunately, many individuals decide to drive with the minimum amount of liability insurance. If you get into an accident with someone who does this, and your injury expenses far exceed the $25,000 minimum, then you could be left paying the remainder of your expenses out of your own pocket. That is why it is very important that you purchase underinsured motorist (UM) insurance if you do not already have it.
UM insures you against drivers who are uninsured or who do not possess enough liability insurance to fully compensate you after an accident. It is used to protect you and your family from a scenario in which you are left with tens or hundreds of thousands of dollars in bills for medical treatment, therapy, or vehicle repair. It can also protect you from accidents that involve hit and run. If you need to file an injury claim after a car accident, UM insurance will allow you a much better chance of obtaining the full compensation that you deserve. Contact a Georgia car accident injury attorney at Van Sant Law, who can provide you with further information about UM coverage, as well as assistance in filing a claim if you have been injured in an accident.
THE REDUCTION RULE
You may not be entitled to your full UM coverage under Georgia law. This is due to the “reduction rule,” which states that you are only entitled to the portion of your UM insurance that is above and beyond the liability insurance of the other driver. For example, if you have $75,000 in UM coverage, and the other driver possesses the minimum $25,000 in liability coverage, then you are only entitled to $50,000 in compensation, even though you have been paying premiums for a $75,000 cap.