What are Uninsured Motorist Coverage types?
Type 1. – Uninsured motorist Coverage
First thing to remember about UM coverage is that it is for your benefit and protection. Every automobile on Georgia ‘s road must have minimum liability coverage which pays ( up to the policy limits amount) for your injury and pain and suffering, loss of income etc.(damages) you suffer from the fault ( e.g. failure to stop at red light, or speeding) of the driver.
Let’s take this example of uninsured motorist coverage situation: Assume fault driver’s liability coverage is $0. Your damages are $50,000. How do you recover your $50,000 damages from fault driver. You can certainly sue and make the fault driver pay from his/her own pocket. But he/she doesn’t have any money or asset, then what? Keep reading.
Type 2. – Underinsured Motorist Coverage
Let’s now consider underinsured motorist coverage situation. Here the amount of damages to you suffer exceeds the amount of the liability coverage of the fault driver. Assume fault driver’s liability coverage is $25,000. Your damages are $50,000. Driver’s auto insurance co. will pay you the policy limit $25,000. Who pays the remaining $25,000? You can certainly sue and make the fault driver pay from his/her own pocket. But if he/she doesn’t have any money or assets, then what? This is where UM coverage comes to your rescue. In other words, UM coverage is “insurance against lack of insurance”. So in this example, if you ( not the fault driver) have UM coverage of $50,000, then you will recover $25,000 from fault driver, and remaining $25,000 under UM coverage of your own auto insurance policy.
In Type 1 – uninsured motorist coverage example above, you will recover all $50,000 under UM coverage of your own auto insurance policy. What UM coverage does is that it places you as injured person in the same position as if the fault driver had liability coverage of $50,000 which is the amount of your UM coverage.
Unless you reject the UM coverage in writing, every auto insurance policy must offer you UM coverage in specified amount (your insurance agent can give you the amounts). Following are a few reasons why you should consider having UM coverage because it provides you source of recovery:
- Your damages in hit and run or no insurance situation
- Expensive hospital and other services for serious injuries
- Your loss of income and earnings
- Your temporary or permanent disability
- Future medical expense and loss of earnings
Finally, Uninsured Motorist coverage gives you benefit and protection at a reasonable cost. Call your auto insurance agent and discuss and get UM coverage.