When most people buy car insurance, they focus on the monthly payment.
The problem?
Many drivers unknowingly reject one of the most valuable protections available to them: Uninsured/Underinsured Motorist Coverage, commonly known as UM coverage.
At Beauchamp & Idlett, we routinely meet injured clients who had no idea they declined this coverage until after a serious accident.
What Is UM Coverage?
UM coverage protects YOU.
Most people assume their insurance policy exists to protect other drivers if they cause an accident. While liability insurance does that, UM coverage is different.
UM coverage can help protect you when:
- The at-fault driver has no insurance
- The at-fault driver leaves the scene (hit-and-run)
- The at-fault driver only carries Georgia's minimum insurance limits
- The at-fault driver's policy is not enough to fully compensate you for your injuries
In Georgia, the minimum liability coverage is often far too low to cover the true value of a serious injury claim.
A trip to the emergency room alone can exceed those limits.
A Real Example
Recently, we reviewed an insurance application where the insurance company presented the customer with a form explaining UM coverage and then offered the option to reject it.
The insurance company's own form described UM coverage as protection for you, your family, and your passengers when an at-fault driver does not have enough insurance to cover the damages caused in a crash.
The customer ultimately signed the rejection section and declined the coverage.
Unfortunately, this happens every day.
Many people are rushing through paperwork, signing electronically, or trying to reduce their monthly premium without fully understanding what they are giving up.
Why UM Coverage Matters So Much
Imagine you suffer $175,000 in damages after a serious collision.
The at-fault driver only carries $50,000 in liability coverage.
What happens next?
Without adequate UM coverage, you may be left personally absorbing a large portion of your losses.
With the right UM coverage in place, you may have an additional source of recovery available through your own policy.
That's why we often tell clients:
You are much more likely to need UM coverage than you think.
Added-On vs. Reduced-By Coverage
Georgia offers two types of UM coverage:
Added-On UM Coverage
This is generally the coverage we recommend.
Added-On coverage is available in addition to the at-fault driver's liability coverage.
In many situations, this provides significantly more protection and access to additional insurance funds when damages exceed the at-fault driver's policy limits.
Reduced-By UM Coverage
Reduced-By coverage subtracts the at-fault driver's available insurance from your UM limits.
While it is usually less expensive, it often provides less protection.
The difference can be substantial after a serious accident.
If you're not sure which type you currently have, we recommend reviewing your declarations page and speaking with an attorney or insurance professional.
We Don't Stop at the Declarations Page
One thing that sets our firm apart is that we do not automatically accept an insurance company's statement that there is no UM coverage available.
When appropriate, we go beyond the declarations page.
We obtain and review insurance applications, coverage election forms, and policy documents to determine whether the insurance company properly complied with Georgia law.
Georgia law generally requires insurance companies to offer UM coverage to policyholders. If questions exist about how coverage was offered, rejected, or documented, additional investigation may be necessary.
Our goal is simple:
We want to make sure no available insurance coverage is left on the table.
Is UM Coverage Expensive?
Surprisingly, no.
In many cases, the additional premium for UM coverage is relatively small compared to the protection it provides.
Yet it can make a tremendous difference after a catastrophic accident.
Our Recommendation
If you are reviewing your auto insurance policy today, we strongly encourage you to:
- Confirm whether you have UM coverage
- Determine whether you have Added-On or Reduced-By UM coverage
- Consider increasing your limits if financially possible
- Review your policy before an accident happens, not after
The best time to discover you have UM coverage is before you need it.
Injured in a Georgia Car Accident?
If you've been injured in a crash, our team can investigate all available insurance coverage and help determine whether additional sources of recovery exist.
Call Beauchamp & Idlett at 229-435-3000 for a free consultation.