CHANGES IN GEORGIA LAW REGARDING UNINSURED MOTORIST COVERAGE WITHIN YOUR AUTOMOBILE INSURANCE POLICY |
When Governor Sonny Perdue signed Senate Bill 276 on May 14, 2008, he benefitted Georgia consumers by requiring insurance companies to offer better uninsured motorist insurance coverage than was previously available. (Senate bill 276 amended O.C.G.A § 33-7-11 by revising subsections (a) and (b), which deal with such coverage under automobile liability policies.) Indeed, approximately 16% of Georgians are driving without insurance, and a significant portion of the drivers who are insured have only minimum limits. In today’s tough economic times, the number of uninsured motorists and underinsured motorists is only expected to increase. As a result, uninsured motorist coverage is more important than ever to Georgians. Uninsured motorist coverage is an optional coverage on all automobile liability insurance policies issued to Georgia residents. It is generally recommended that everyone purchase uninsured motorist coverage with limits equal to their bodily injury liability limits. Basically, uninsured motorist coverage is self-protection for you and the passengers in your car. Your uninsured motorist coverage may also provide coverage to you, any other person named under your automobile liability insurance policy and any member of your household (not excluded under the policy) who may be operating or riding in a vehicle that is not owned by a member of your household. Uninsured motorist coverage pays benefits for bodily injury or death caused by an uninsured driver, an underinsured driver, a hit-and-run driver, an insured driver whose bodily injury liability limits are inadequate to cover the losses incurred and/or a driver insured by an insolvent insurer. There is a slight distinction between uninsured motorist coverage and underinsured motorist coverage. A defendant is uninsured if s/he does not have insurance coverage at all. A defendant is underinsured if s/he does not have adequate coverage to compensate for all the damages s/he may have caused. Despite this nominal difference, it is common to refer to both coverages simply as uninsured motorist coverage. As of January 1, 2009, Georgians have three (3) options as to uninsured motorist coverage. The first will be the new enhanced uninsured motorist coverage that resulted from the amendment of O.C.G.A. § 33-7-11. This will be the best option for most Georgians. If you already have uninsured motorist coverage and you take no action prior to your next policy renewal during 2009, your premium will go up slightly and you will automatically have this type of coverage. (This enhanced coverage will allow you, in the event of an accident in which the defendant did not have adequate policy limits to provide full compensation, to stack your uninsured coverage limits on top of the defendant’s liability limits for an additional recovery, not to exceed the lesser of the full value of your damages or your uninsured motorist limits.) The second option will be to elect to keep the same type of uninsured motorist coverage that was in effect prior to January 1, 2009. (This coverage provides additional coverage above the defendants policy limits, but takes credit for the defendant’s coverage, which reduces the uninsured motorist limits available by the amount of the defendant’s coverage.) While the premium for this coverage will be less than the premium for the best coverage outlined above, the reduction in premium does not outweigh the potential loss of benefits. The third and final option, which should not be considered a viable choice for most Georgians, will be to choose not to purchase any uninsured motorist coverage. If you previously refused uninsured motorist coverage in the past, you will continue not to have this coverage and you may not receive a notice from your insurance company regarding the recent change in O.C.G.A. § 33-7-11. As a final note, it is important that you have adequate automobile liability insurance coverages, not only to protect yourself, but also because you can only purchase uninsured motorist coverage up to the limit of your liability coverages. I strongly suggest that you purchase at least $1,000,000 of liability coverage in the form of a combined single limit (CSL) and, in addition, purchase uninsured motorist coverage of $1,000,000 in the form of a combined single limit (CSL). If possible, you should purchase automobile insurance coverage with liability limits and uninsured motorist coverage limits of an even higher amount. Also, you should consider purchasing a personal liability umbrella policy of at least $1,000,000 (some umbrella coverages are available up to $10,000,000), as well as additional uninsured motorist coverage in an equivalent amount. While you are reviewing your insurance policies, you should also consider the purchase of medical payments coverage and loss-of-income coverage. Then, check to confirm that you have the appropriate comprehensive and collision coverages for each vehicle. This is general information for the general population and is not legal advice. When in doubt, you should purchase the highest coverages available. Everyone is different; you should consult with your personal attorney and your insurance agent regarding the types and amounts of insurance coverage you require. The above contains general information and is not tailored to a specific legal problem; it should not therefore, be considered legal advice. Do not try to use this information without consulting an attorney to learn how the law affects your unique circumstances . |
By: Michael D. Deming Deming, Parker, Hoffman, Campbell & Daly, LLC 4851 Jimmy Carter Blvd. Norcross, Georgia 30093 770-564-2600 Email: demingmd@deminglaw.com |
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