What Happens When the At-Fault Driver Does Not Have Enough Insurance in Georgia?

A serious car accident can cause hundreds of thousands of dollars in medical expenses, lost income, and future-care needs. Unfortunately, the driver who caused the collision may carry only the minimum amount of automobile insurance required by Georgia law.

Georgia presently requires drivers to carry only $25,000 in bodily-injury liability coverage for one injured person and $50,000 for everyone injured in a single accident. Georgia Office of the Commissioner of Insurance

For someone who suffers a spinal injury, traumatic brain injury, multiple fractures, or another life-changing injury, $25,000 may not come close to covering the losses.

That does not necessarily mean the injured person is limited to the at-fault driver's policy. Other insurance coverage—particularly uninsured/underinsured motorist coverage—may be available.

What Is Underinsured Motorist Coverage?

Uninsured motorist coverage is commonly called “UM coverage.” It can apply when the at-fault driver:

• Has no automobile insurance;
• Does not have enough liability insurance;
• Leaves the scene and cannot be identified;
• Was driving a vehicle whose insurance denies coverage; or
• Otherwise qualifies as uninsured under Georgia law.

Georgia's uninsured motorist statute is found at O.C.G.A. § 33-7-11. The statute generally requires automobile insurers to offer UM coverage, although a policyholder may reject it or select lower limits in writing. O.C.G.A. § 33-7-11

Because of this, one of the first things an attorney should do after a serious collision is obtain and examine every potentially applicable automobile policy.

Why the At-Fault Driver's Policy May Not Be Enough

Consider this example:

A driver causes a collision and carries only $25,000 in bodily-injury coverage. The injured person requires surgery and incurs $90,000 in medical bills, in addition to lost wages and significant pain and suffering.

Even if the liability carrier pays its entire $25,000 policy limit, the injured person's losses remain largely uncompensated. If the injured person has applicable UM coverage, an additional claim may be made under that policy.

A UM claim is generally made against your own insurance company, but your insurer does not automatically become your advocate. The carrier may challenge:

• Who caused the collision;
• Whether the injuries resulted from the collision;
• The necessity and cost of medical treatment;
• The value of lost income;
• Whether an injury was preexisting; and
• The overall value of the claim.

You paid for the coverage, but you may still have to prove every part of your case.

Georgia Has Different Types of UM Coverage

Georgia policies may contain either “add-on” coverage or “reduced-by” coverage.

Add-On Coverage

Add-on coverage may provide compensation in addition to the at-fault driver's liability coverage.

For example, if the at-fault driver has $25,000 in liability coverage and the injured person has $100,000 in add-on UM coverage, as much as $125,000 in combined coverage may potentially be available, depending on the damages and policy terms.

Reduced-By Coverage

With reduced-by coverage, the amount paid by the at-fault driver's insurer generally reduces the available UM limit.

Using the same example, a $100,000 reduced-by policy combined with a $25,000 liability payment would ordinarily leave no more than $75,000 potentially available from the UM carrier.

The declarations page may not tell the entire story. The policy, coverage-selection documents, endorsements, and rejection forms should all be examined.

More Than One UM Policy May Apply

In some cases, multiple UM policies may potentially cover the same injured person. Possible sources include:

• The policy covering the vehicle occupied during the collision;
• The injured person's personal automobile policy;
• A spouse's policy;
• A policy issued to a resident family member; or
• Coverage associated with another household vehicle.

Georgia law may permit coverage under multiple policies to be combined or “stacked,” depending on the circumstances and policy language. Never assume that the coverage listed on the accident report is the only insurance available.

Do Not Settle the Liability Claim Too Quickly

When the at-fault insurer offers its policy limit, accepting the money may seem like the obvious next step. However, resolving the liability claim without properly protecting the UM claim can create unnecessary legal problems.

Before signing a release, an injured person should determine:

1. Whether UM coverage exists;
2. Which policies may apply;
3. Whether the UM carrier must receive advance notice;
4. Whether the proposed release protects the remaining UM claim; and
5. Whether other responsible parties or insurance policies exist.

This is especially important in commercial-vehicle and trucking cases. A driver, employer, vehicle owner, contractor, broker, or another business may have separate insurance or legal responsibility.

What Compensation Can a UM Claim Include?

When supported by the evidence, a Georgia UM claim may include compensation for:

• Past and future medical expenses;
• Lost wages;
• Diminished earning capacity;
• Physical pain and suffering;
• Emotional distress;
• Permanent impairment or disability;
• Scarring and disfigurement;
• Loss of enjoyment of life; and
• Other damages caused by the collision.

The value of the claim depends on the actual evidence not merely the amount of insurance available.

Steps to Protect an Underinsured Motorist Claim

After a serious Georgia collision:

• Request complete copies of all automobile insurance policies;
• Notify potential UM carriers promptly;
• Preserve the accident report, photographs, videos, and witness information;
• Follow reasonable medical recommendations;
• Document missed work and changes in daily activities;
• Do not give a recorded statement without understanding its consequences;
• Do not sign a liability release before reviewing its effect on UM coverage; and
• Speak with an attorney before important deadlines expire.

Insurance policies contain notice requirements, and Georgia law imposes procedural requirements on UM claims. Waiting too long can jeopardize otherwise valid coverage.

Speak With a Georgia Car Accident Attorney

When catastrophic injuries exceed the at-fault driver's insurance limits, identifying every available source of recovery is critical. What initially appears to be a $25,000 case may involve additional UM coverage, multiple policies, commercial coverage, or other responsible parties.

The Roper Law Firm represents people and families affected by catastrophic personal injuries and wrongful deaths throughout Georgia. We investigate the collision, examine the available insurance policies, preserve critical evidence, and pursue the parties and insurers responsible for the loss.

To discuss a serious Georgia car-accident claim, contact The Roper Law Firm at 404-282-2800 or visit www.kevinroperlaw.com.