When a car accident happens, most people assume the at-fault driver’s insurance will cover their injuries. Unfortunately, that is often not the case. Many Georgia drivers carry only the minimum required liability coverage, which may not be enough to pay for serious injuries. When the at-fault driver’s insurance runs out, injured victims are left wondering what options they still have.
This situation is known as an underinsured motorist scenario.
What Does “Underinsured” Mean in Georgia?
A driver is considered underinsured when their liability insurance limits are too low to cover the full cost of the injuries they caused. Georgia law requires drivers to carry minimum liability coverage, but those limits are often exhausted quickly after an accident involving hospital care, surgery, or extended treatment.
Once the at-fault driver’s policy is maxed out, their insurance company has no obligation to pay more. That does not mean the injured person is out of options.
Underinsured Motorist Coverage Explained
Underinsured Motorist coverage, commonly called UIM coverage, is insurance you carry on your own policy. It is designed to step in when the at-fault driver does not have enough coverage to fully compensate you.
In Georgia, UIM coverage can apply to medical bills, lost wages, pain and suffering, and other damages. There are two main types:
- Add-on coverage, which allows you to recover the full amount of your UIM policy in addition to the at-fault driver’s limits
- Reduced-by coverage, which subtracts the at-fault driver’s limits from your UIM limits
Understanding which type you have is critical, because it affects how much compensation may be available.
How an Underinsured Claim Works
After settling with the at-fault driver’s insurer for their policy limits, a claim may be made against your own UIM coverage. This process is not automatic. Your insurance company essentially steps into the role of the opposing party, which often leads to disputes over fault and damages.
Insurance companies frequently challenge these claims by arguing that injuries are exaggerated, treatment was unnecessary, or pain existed before the accident. Even though it is your own insurer, they are still focused on minimizing payouts.
Why These Claims Are Often Denied or Undervalued
Underinsured motorist claims are complex. Insurance companies may delay approval, demand excessive documentation, or pressure injured people into early settlements. Many victims do not realize that accepting a low settlement from the at-fault driver without proper notice can jeopardize their UIM claim.
Timing, notice requirements, and documentation all matter. A mistake can cost thousands of dollars in lost compensation.
Why Legal Help Matters
An attorney can review insurance policies, identify all available coverage, calculate the full value of the claim, and handle negotiations properly. This ensures that injured victims do not leave compensation on the table simply because the at-fault driver carried insufficient insurance.
FAQ
Q: What is underinsured motorist coverage in Georgia?
A: It is insurance on your own policy that provides compensation when the at-fault driver’s liability coverage is not enough to cover your injuries.
Q: Can I still file a claim if the at-fault driver has some insurance?
A: Yes. If their coverage is insufficient, an underinsured motorist claim may apply.
Q: Do I have to notify my insurance company before settling?
A: Yes. Failure to provide proper notice can jeopardize your underinsured motorist claim.