Trial Attorney Blog
One of the unfortunate occurrences we see in our practice all too often is the regrettable case where our clients believe they have more insurance coverage than they have in actuality and less than what they need. It is not unusual for us to see a client who has excellent liability coverage, for example, $300,000.00 – $500,000.00 in single limit coverage (or better). That same client, however, even though they have $300,000.00 – $500,000.00 in liability coverage protecting the third party in the event they are negligent will often times only carry $25,000.00 per person, $50,000.00 per accident in uninsured motorist coverage. In short, the clients have more coverage for the person that they might hurt than they have for themselves if they are hurt by a third party.
Increasingly, the public needs to understand that uninsured motorist coverage is almost vital. The minimum insurance limits that must be carried by any operator of a motor vehicle in Georgia is $25,000.00 per person, $50,000.00 per accident (referred to as 25/50 coverage). Not only do many people have the absolute minimum limits of coverage that are necessary in order to get their tags to operate a vehicle lawfully, others have no insurance at all. Accordingly, if there is an accident when someone causes serious injury to another, and they only have 25/50 in coverage, what this means is they only have $25,000.00 in coverage to provide financial compensation to any single person they injure, and a maximum of $50,000.00 no matter how many persons are injured. In serious injury cases, $25,000.00 is never enough to even compensate for medical bills, much less lost wages, pain and suffering and/or permanent disability. Because tortfeasors often times have only minimum limits of coverage, it is vital that those who can afford it have uninsured motorist coverage so that they can protect themselves from those situations where the tortfeasor is either uninsured or grossly underinsured.
As amended by the Georgia Legislature in 2001, O.C.G.A. § 33-7-11(a)(1) provides that “no automobile liability policy or motor vehicle liability policy” may be issued in this state unless it contains provisions for uninsured motorist coverage which, at the option of the insured, shall be (i) not less than $25,000.00 per person and $50,000.00 per accident, or (ii) equal to the policy’s bodily injury liability insurance coverage, if higher.
We wish to draw the attention of all Georgia citizens to the second provision of this amended statute. Anyone that purchases $300,000.00 – $500,000.00 in liability insurance coverage to protect themselves from being sued in accidents where they are at fault has a legal right to get the exact same amount of coverage to protect themselves in the event someone hits and injures them and they turn out to be either uninsured or underinsured.
If a person is responsible enough to carry $300,000.00 – $500,000.00 in liability insurance limits, they may also be responsible enough not to cause accidents. However, this same responsible person, if they do not protect themselves through the purchase of uninsured motorist coverage, may end up in a situation where they are severely injured by someone who has the minimum limits of insurance ($25,000.00 per person, $50,000.00 per accident) and, if they do not elect to carry the same limits of uninsured motorist coverage, they may be one of those unfortunate cases we see all too often.
If an uninsured motorist or under insured motorist causes serious injury (such as an amputation, paralysis or death) they may only have $25,000.00 in coverage and yet still be completely within the law in the operation of their motor vehicle. If they have only the minimum limits of coverage (25/50) they may very well not have any assets sufficient to pay compensation for the damage that they do. For example, a drunk driver might cause severe injury or death and still only have $25,000.00 in coverage. In such a case, the innocent victim of such a tragic occurrence will have to rely upon their own uninsured/under insured motorist coverage to compensate themselves for the damages caused by the drunk driver. If the client only as 25/50 in uninsured motorist coverage, there is little a lawyer can do to help the innocent victim if the person responsible for the accident has little or no assets which is typically the case when someone has minimum limits of coverage.
Every lawyer at our firm has had a case where there was a tremendous tragedy caused by a gross act of negligence (such as drunk driving or driving under the influence of drugs or speeding or drag racing or things of that nature). In some of the horrific cases where people are severely injured, the at fault person either has no insurance or the minimum limits in coverage. Typically such an at fault driver has no assets sufficient to satisfy any judgment obtained against them personally. In these tragic cases, the only way that the injured person can ever hope to be compensated for their damages is if they were prudent enough to purchase a sufficient amount of uninsured/under insured coverage to protect themselves in the event of such an occurrence. While these are matters of budget, obviously, what we have seen is that uninsured/under insured coverage is the cheapest coverage one can buy when dealing with their insurance agent. Liability coverage is always more expensive than is uninsured/under insured coverage. Thus, we would urge all of our clients, as well as all those who wish to protect themselves and their families from the acts of third parties, to purchase such uninsured/under insured coverage as they can and at least in no amount less than what they have in liability insurance coverage.
One last thing here, while we are on the subject. If someone is one is prudent enough to have a personal umbrella liability insurance policy, then that policy must also offer the same limits uninsured/under insured coverage as is offered for the liability protection provided under the umbrella excess policy. For example, if the insured has $1 million umbrella policy to protect themselves in the event they are sued, then under Georgia law, the insurance carrier must offer the exact same amount of coverage in uninsured/under insured coverage. Of course, any insured can reject such coverage in writing but if they do not reject the coverage in writing, then Georgia law is such that the insurance company is required to offer the exact same amount of uninsured/underinsured coverage as is purchased through the liability policy. Again, we urge all Georgia citizens to protect themselves from uninsured/under insured motorists to the extent economically possible and feasible. It is far better to have it and not need it than it is to need it and not have it.