Reduced vs. Excess UM

There are two kinds of uninsured motorist coverage available to Georgia drivers. Reduced UM is the more traditional of the two types of coverage. Although it has significant shortcomings, having some form of UM is certainly still preferable to none. Choosing reduced uninsured motorist coverage means you will be provided coverage only in instances where the at-fault party’s coverage is less than your coverage.

Furthermore, the coverage is only applicable to the extent your policy is greater than the at-fault party’s coverage. For example, if you obtain a $100,000 reduced UM policy and are injured in an auto accident by someone with no coverage, you can make a claim through your UM insurer for up to $100,000. Or, in the event you are injured in an auto accident by someone with the state minimum $25,000 in liability coverage, your uninsured motorist coverage will be reduced by that amount and provide you with only $75,000 in coverage for a total of $100,000 in coverage.

Conversely, excess UM coverage, also called add-on UM, provides insurance to you, your family, and your passengers in addition to any coverage held by the at-fault party. Using the example above, an excess uninsured motorist policy would still provide you with $100,000 in coverage where the at-fault party has no insurance.

However, where the at-fault driver’s coverage is $25,000, your $100,000 excess UM policy will provide you and your loved ones with up to $125,000 in total coverage. If you sustain significant injuries and incur extensive medical expenses, the difference in having no UM coverage, reduced coverage, or excess coverage can be drastic. Interestingly, the difference in cost between reduced and excess coverage is often minimal.

Need a lawyer to pursue compensation after being injured by an uninsured motorist?

The uninsured motorist attorneys at Jones & Swanson have years of experience handling claims involving multiple insurance policies, especially UM coverages. Many times Marietta auto accident victims are unaware that such coverage may exist and that they may be afforded UM coverage under several different policies. Nearly all uninsured motorist policies require prompt notice of an accident and potential UM claim. At Jones & Swanson, our attorneys and staff are dedicated to providing you with quality representation and are happy to review your potential claim.

If you have been injured in an auto accident, it is important to contact the Marietta legal team at our firm quickly for a free consultation.