UM vs. UIM: What Georgia Drivers Need to Know

Car insurance can be confusing, especially when you start hearing terms like Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage. But if you have ever been in a car accident or know someone who has, these coverages can make a big difference.

Here’s a simple breakdown of UM vs UIM: what Georgia drivers need to know.

What’s the Difference Between UM and UIM?

Many people do not know the difference between uninsured and underinsured motorist coverage. UM coverage kicks in if you are hit by a driver who does not have insurance or in hit-and-run situations where the driver cannot be found. UIM coverage helps when the driver who caused the accident has insurance, but not enough to cover your medical bills, lost wages, or property damage. In simple terms, UM helps when the other driver has no insurance, and UIM helps when they do not have enough.

Is UM/UIM Coverage Required?

In Georgia, insurance companies are required to offer UM/UIM coverage, but you are not required to accept it. You can choose to waive it in writing. However, this is generally not recommended.

This is because if you are seriously injured in an accident with an uninsured or underinsured driver, UM/UIM coverage could be your safety net.

Add-On vs. Reduced-By: Know What You Are Getting

Georgia gives you two options when it comes to UM/UIM: add-on coverage and reduced-by coverage.

Add-On Coverage

Also known as “stacking”, this adds to whatever the other driver has. For example, if they have $25,000 in coverage and you have $100,000 in UM/UIM, you could access up to $125,000.

Reduced-By Coverage

With this option, your UM/UIM limit is reduced by the at-fault driver’s UM/UIM limit. Using the same numbers, you would only be able to access $75,000 of your policy.

We usually recommend add-on coverage because it gives you more protection when you use it most.

When Can You Use UM or UIM?

UM coverage can apply right away in hit-and-run or uninsured driver accidents, while UIM kicks in only after the at-fault driver’s policy limits have been used up.

These policies can cover medical expenses, lost income, and even pain and suffering. They usually protect you, family members in your household, passengers in your car, and, sometimes, even pedestrians or cyclists injured by uninsured drivers.

Why It Matters?

Unfortunately, Georgia has more uninsured and underinsured drivers than you might think. Even though it is illegal to drive without insurance, it still happens. And the minimum required coverage of $25,000 per person is not much when you consider how expensive medical bills can get after a serious crash.

UM/UIM coverage is often inexpensive to add to your policy, and it can give you real peace of mind.

Contact Us To Learn More About UM & UIM Motorist Coverage in Georgia

If you are not sure whether you have UM/UIM coverage or are dealing with an accident involving one of these scenarios, talk to an attorney who knows Georgia law. At Smith Hulsey Law, we help drivers get the protection and compensation they deserve after serious accidents.

Have questions about UM and UIM coverage or need help after a crash in Georgia? Contact our team today; we are here to help.