Uninsured/underinsured motorist coverage (UM/UI) is a way to protect yourself if you are in an accident caused by an uninsured or underinsured driver. Most people don’t realize that UM/UI coverage can also be helpful in several situations. As with liability insurance, you can purchase UM/UI in varying amounts. In some situations, UM/UI may be used with other insurance payouts.
Figuring out how to deal with your costs after an accident can be difficult, especially if you learn that the at-fault driver didn’t have insurance coverage. Some people believe they are out of luck and will be stuck dealing with the expenses on their own. Fortunately, other options are often available UM/UI insurance.
If you’re at a loss for covering costs after an accident with an uninsured driver, you need the help of a Georgia car accident attorney to explain all your options. Attorney Ali Awad is a skilled personal injury attorney who assists clients with insurance claims and other methods of seeking compensation. He established the CEO Lawyer Personal Injury Law Firm and quickly turned it into one of the fastest-growing law firms in the country. When you need help with a car accident claim, the CEO Lawyer Personal Injury Firm provides free consultations, and if we take your case, you won’t pay anything until we win.
What Happens to Uninsured Drivers in an Accident?
Hopefully, you’re not reading this because the uninsured driver is you, which limits your options for seeking compensation. However, if the other driver was at fault, you should still be able to make a claim against their car insurance. You shouldn’t let your lack of insurance prevent you from seeking damages from a responsible party or their insurance carrier. In some situations, there may be other options, which your attorney will go over with you. But you will not be able to rely on your own UM/UI, MedPay, or collision coverage if the other driver was also uninsured or if you were predominantly at fault. (Fortunately, situations where two uninsured drivers have an accident are not that common.)
If you’re reading this because you were hit by an uninsured driver, you will likely have a wider range of options, depending on the limits of your own coverage. The uninsured motorist will be ticketed for driving without insurance, and you can sue them directly for your damages. Unfortunately, this is often not a practical option. In many cases, drivers lack insurance because they can’t afford it. If this is the reason, they probably can’t afford to pay a judgment when you win in court. We don’t recommend clients invest time and court costs in a lawsuit that will never result in the collection of any damages won.
The good news is that suing the other driver is not your only option for receiving damages. If you have purchased UM/UI coverage, it will cover your damages up to your policy limits. In Georgia, the minimum car insurance coverage is $25,000 in bodily injury liability and $25,000 in property damage. UM/UI coverage starts at these amounts, but you have the option to purchase a larger policy.
Stacking and Non-stacking Policies: What Does “Underinsured” Mean?
Sometimes people mistakenly think that “underinsured” coverage means a policy that doesn’t meet state minimum requirements in some way, but this is unlikely to happen with any reputable insurance carrier. “Underinsured” refers to a situation where a car accident victim’s medical costs and other damages have exhausted the at-fault driver’s liability coverage. So you might have $50,000 in hospital bills, but the driver who hit you only has $25,000 in liability insurance, meaning they are underinsured for this particular situation. However, in some circumstances, your UM/UI coverage may be beneficial.
Some UM/UI policies are “stacking,” meaning they can be used in addition to the other driver’s insurance, while others are non-stacking. Essentially, a non-stacking policy only guarantees you will have X amount of coverage. So a non-stacking $25,000 policy is useful if the other driver has no insurance at all, but if they have $25,000 in liability coverage, you will not be able to use the additional $25,000 from your UM/UI policy if your medical costs exceed that amount.
However, if you had a $50,000 UM/UI non-stacking policy, you would still have access to an additional $25,000 after the at-fault driver’s insurance paid its limit. Or, if you had a stacking policy for $25,000 and the other driver had a $25,000 policy, you would have $50,000 in combined coverage for your medical costs.
What if You’re Hit by an Uninsured Motorist While Walking or Riding a Bike?
Another misconception about UM/UI insurance is that it will only apply if driving your insured vehicle when the uninsured motorist hits you. This is not the case. UM/UI also applies if you are walking, riding a bike, or even riding on public transit when the accident happens. Additionally, you can use this coverage if you’re in an accident with a hit-and-run driver who is never located.
UM/UI typically covers:
- You and your spouse.
- Other relatives who live in your household (usually children old enough to have a driver’s license, but can also apply to parents or other relatives who live with you).
- Anyone using your car with your permission. So if you loan your car to a friend and they’re hit by an uninsured motorist, you don’t have to worry about who will pay for the damage to your car.
- A passenger riding in your car with your permission.
In situations where your damages outpace your UM/UI coverage as well, there may in some cases be other options for securing compensation.
Call the CEO Lawyer Personal Injury Law Firm
If you or a loved one have been injured by an uninsured or underinsured motorist, the best way to learn about the options for your particular situation is to call the CEO Lawyer Personal Injury Firm for a free consultation. We’ll answer your questions and explain the possibilities. If we take your case, we’ll work on a contingency basis, and it won’t cost you anything until we win.
Find out how much your case is worth and give us a call at (470) 323-8779.
