Increasing Insurance Coverage Limits

Car insurance has become a profitable industry, especially if insurance commercials indicate anything. Today, there is coverage (or the expectation of coverage) for everything (hint: read the fine print and exceptions). But what really is UM (Uninsured or Underinsured) coverage?

UM insurance covers an injured party when the at-fault driver has no insurance up to the UM limits. UM coverage also can act as additional coverage when the at-fault driver does not have enough insurance. Since 2009, Georgia law requires insurance companies to offer customers an election regarding UM insurance. The election allows UM insurance to: 1). Act as additional coverage in addition to the at-fault driver’s insurance limits; or 2). Act as traditional UM coverage (which is only triggered, if at all, when at-fault limits are reached and the UM coverage exceeds such at-fault limits). In traditional UM, the coverage is set-off by the at-fault limits.

Stacking UM is the process by which all household UM coverages covering resident relatives are added together (even if the other vehicles were not involved in the wreck) in order to increase available UM coverage limits. Stacking limitations are subject to the policy language, but most UM’s are stackable, which can provide an injured motorist greater UM coverages.

In our practice, we routinely see folks injured by uninsured or underinsured drivers. For the best protection check with your insurance agent concerning your coverages and limits. An increase in UM coverage is not that costly versus the risks of not having sufficient coverage when you need it.

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