Uninsured and underinsured motorist (UM/UIM) coverage can put more money in your pocket – but only if you have a policy and use it.

Georgia law requires all drivers to have liability insurance that meets the minimum bodily injury limits of $25,000 per person and $50,000 per incident. But what happens if you are in a wreck and the at-fault party does not have liability insurance? What happens if you are in a wreck and the at-fault party has liability insurance, but their insurance amount is insufficient to cover your expenses?

In Georgia, about 12% of drivers are uninsured. UM/UIM coverage is a great way to protect yourself if you are involved in a collision with an at-fault driver who is uninsured or underinsured. UM/UIM coverage is not a requirement in Georgia, but if you have a policy, your coverage can “kick in” and pay some or all of the costs that you would otherwise have to pay out-of-pocket.

Yet, oftentimes, UM/UIM policyholders hesitate to use their policy because they fear their UM/UIM rates will increase. This is a myth.

If you are not the at-fault party, using your UM/UIM policy will not cause your rates to increase.

What Does Georgia Law Say About Insurance Companies Increasing Rates and Canceling Policies?

OCGA § 33-9-40 says that “[n]o insurer shall surcharge the premium or rate charged on a policy of motor vehicle insurance or cancel such policy as a result of the insured person's involvement in a multivehicle accident when such person was not at fault in such accident.”

This means that if you are involved in a wreck where someone else is at fault, your insurance company cannot increase your rates or cancel your policy.

A Client’s Story and the Importance of Using Your UM/UIM Policy

We had a client who was involved in a wreck as a passenger and was thrown from the vehicle. The client spent multiple days in the ICU with severe face and head injuries.

Unfortunately, the client amassed expensive medical bills because of the wreck, and the at-fault driver’s $50,000 liability policy was not enough to cover the costs.

The client had $25,000 in UM/UIM coverage but was hesitant to use the policy because they did not want their rates to go up.

We explained to the client how Georgia law prohibits insurance companies from raising the rates for a party who is not at fault. We also explained that by not taking advantage of their $25,000 UM/UIM policy, the client was limiting the amount of money they could receive by $25,000.

The client listened to our advice about their UM/UIM policy and ended up receiving a $76,000 settlement – $50,000 from the at-fault party’s liability coverage, $25,000 from the client’s UM/UIM policy, and $1,000 from other funds.

While this money will never be able to change what happened to our client, we were happy to help them maximize their recovery.

Talk to an Experienced Attorney About Your UM/UIM Policy

It can be overwhelming to navigate a personal injury case, especially when receiving multiple bills and trying to work with the insurance companies. The best decision you can make is to consult with a personal injury attorney regarding your rights and the insurance company’s responsibilities.

At Gary Martin Hays & Associates, our team of legal experts has overseen thousands of cases. We are intimately familiar with Georgia’s laws and can see right through the insurance company’s tactics.

If you want an Atlanta personal injury law firm that has your back every step of the way and has earned their clients more than $1 billion in settlements, call us today at (770) 934-8000 or fill out our online form to speak with one of our Georgia accident attorneys.