Georgia Uninsured Motorist Coverage: Added-On vs Reduced-By, Rejecting It in Writing, Stacking and the Property Damage Deductible

Georgia uninsured motorist (UM) coverage comes in two forms, added-on and reduced-by, and the difference shows up when the driver who hits you has some insurance but not enough. Added-on coverage pays on top of the at-fault driver's available liability insurance, while reduced-by coverage pays only the difference between that liability insurance and your UM limit, under O.C.G.A. § 33-7-11 (opens in a new tab). Added-on is the form the statute provides unless you reject it and choose reduced-by in writing. Every Georgia auto liability policy must include UM coverage unless a named insured rejects it in writing, and either form stops at your actual losses. Your declarations page shows which form you have, and your agency can confirm it.

What does added-on mean in Georgia?

Added-on coverage treats the at-fault vehicle as uninsured to the full extent of your UM limits, even though that driver carries liability insurance, under O.C.G.A. § 33-7-11(b)(1)(D)(ii)(I) (opens in a new tab). Your UM coverage then applies to your losses in addition to whatever the other driver's liability policy pays.

Two limits keep it from paying twice. Your UM coverage can't duplicate payments already made under the other driver's liability coverage, and your combined recovery from both can't exceed the total of your economic and noneconomic losses. Economic losses are things like medical bills, lost wages and repair costs; noneconomic losses include pain and suffering.

What does reduced-by mean?

Reduced-by coverage treats the at-fault vehicle as uninsured only for the difference between that driver's available liability coverage and your UM limits, under O.C.G.A. § 33-7-11(b)(1)(D)(ii)(II) (opens in a new tab). You get this form only by rejecting added-on coverage and selecting reduced-by in writing.

"Available" coverage has a specific meaning. It's the other driver's policy limit, minus any amount already paid to other people hurt in the same crash or otherwise used up. If three people share the other driver's $25,000 limit, the amount available to you can be well below $25,000.

Which option applies if you make no selection?

Added-on. The statute sets out added-on coverage first, and reduced-by applies only when an insured rejects added-on and selects reduced-by in writing. Once you've rejected added-on and chosen reduced-by with an insurer, that insurer doesn't have to offer added-on again on a renewal policy, under O.C.G.A. § 33-7-11(b)(1)(D)(ii)(III) (opens in a new tab).

That's why the paperwork matters. If you aren't sure what you signed when the policy started, ask your agent for a copy of any UM selection or rejection form on file and check the declarations page for the words "added on" or "reduced by."

How does payment work after an underinsured driver hits you?

The difference is easiest to see with numbers. The figures below are a hypothetical illustration of the statute's formula, before deductibles, offsets and the rest of your policy terms.

Say the at-fault driver carries the Georgia minimum of $25,000 per person for bodily injury, you carry $100,000 in UM bodily injury coverage, and your losses come to $150,000.

• With added-on coverage, the other driver's insurer pays up to $25,000, and your UM coverage can pay up to its full $100,000 on top of that. Your combined recovery can reach $125,000, which is still under your $150,000 in losses.
• With reduced-by coverage, your UM pays only the difference between your $100,000 limit and the $25,000 available from the other driver, so up to $75,000. Your combined recovery tops out at $100,000.

If your losses were only $60,000, both forms would stop at $60,000, because neither can pay more than your total losses. The gap between the two forms grows as the other driver's insurance shrinks relative to your losses. To compare the premium for each form on your own policy, ask your agency to quote both.

Can you reject Georgia UM coverage?

Yes, in writing. UM coverage is required on every auto liability policy issued or delivered in Georgia, or issued by a Georgia-licensed insurer for a vehicle principally garaged or used in Georgia, unless any named insured on the policy rejects it in writing, under O.C.G.A. § 33-7-11(a)(3) (opens in a new tab). A spoken "no thanks" doesn't count.

Rejecting UM entirely and choosing lower UM limits are two different choices. The statute lets you affirmatively choose UM limits lower than your liability limits, so you can keep some UM coverage without matching your liability limits.

Renewals follow your earlier choice. If you rejected UM coverage on a policy the same insurer issued earlier, that insurer doesn't have to add it back on renewal. Once UM coverage is issued, the insurer doesn't have to raise the amount above what's shown on the renewal declarations page. Umbrella and excess liability policies don't include UM coverage unless the policy or an endorsement provides it.

Adding a vehicle or switching insurers can raise a fresh question. Ask the insurer whether your existing election carries over, whether the change is treated as a renewal or a new policy, and which signed form controls.

What limits and deductibles does Georgia law set?

At your option, UM limits are either the minimum of $25,000 for one person's bodily injury or death, $50,000 for two or more people and $25,000 for property damage, or limits equal to your own liability limits when those are higher, under O.C.G.A. § 33-7-11(a)(1) (opens in a new tab). You can also choose lower UM limits than your liability limits, as long as you do so affirmatively.

UM bodily injury and UM property damage can each carry a deductible of $250, $500 or $1,000, at the option of any named insured, under O.C.G.A. § 33-7-11(a)(2) (opens in a new tab). Deductibles above $1,000 may be offered with the Insurance Commissioner's approval, the deductibles can't go below $250, and they must be available at a reduced premium. When a policy combines bodily injury and property damage into a single limit, the two deductibles combine into one aggregate deductible.

What does UM property damage cover, and how is it different from collision?

UM property damage covers injury to or destruction of an insured's property caused by an uninsured motorist. "Property of the insured" means the insured vehicle and personal property you own that was inside it, under O.C.G.A. § 33-7-11(b)(1)(C) (opens in a new tab).

Collision is a different coverage. It pays for physical damage to your car when it collides with an object, such as a tree or another car, no matter who caused the crash, and it isn't required by Georgia law, according to OCI's auto insurance page (opens in a new tab). A lender or leasing company can require it. UM property damage responds only when an uninsured or underinsured driver is responsible.

The two can overlap on the same crash. A UM policy may exclude property damage you've already been paid for through other property or physical damage insurance, under O.C.G.A. § 33-7-11(i) (opens in a new tab). Ask your agent which coverage pays first after a crash with an uninsured driver and which deductible applies to each. Our article on whether you need uninsured motorist coverage explains UM in general terms.

Can Georgia UM coverage be stacked?

Stacking means combining UM limits from more than one vehicle or policy for a single crash. Georgia's UM statute refers to the UM coverage provided under "the insured's motor vehicle insurance policies," in the plural, and measures recovery against those limits, the other driver's available coverage and your total losses, under O.C.G.A. § 33-7-11(b)(1)(D) (opens in a new tab).

Whether limits combine in your situation depends on the policies involved, who qualifies as an insured under each, the limits, each policy's other-insurance language and whether any policy is primary, excess or an umbrella. If you have more than one car or more than one policy in the household, ask your agent how the UM limits on each would apply to one crash and get the answer in writing.

Who is covered by Georgia UM insurance?

The statute defines "insured" broadly, under O.C.G.A. § 33-7-11(b)(1)(B) (opens in a new tab):

• The named insured.
• A spouse who lives in the same household.
• Relatives of either who live in the same household, while in a motor vehicle or otherwise.
• Anyone using the covered vehicle with the named insured's express or implied consent.
• A guest in the covered vehicle.
• A foster child or ward living in the named insured's household under a court order, guardianship or placement by the state.
• The personal representatives of any of these people.

The phrase "in a motor vehicle or otherwise" means a household member can be covered while walking or biking, depending on the policy terms. A policy can also reduce what UM pays for injuries you've already been compensated for through medical payments coverage or workers' compensation, under O.C.G.A. § 33-7-11(i) (opens in a new tab). Ask your agent how your policy coordinates with health insurance, medical payments coverage and workers' compensation.

What happens in a hit-and-run?

A vehicle counts as uninsured when its owner or operator is unknown, under O.C.G.A. § 33-7-11(b)(2) (opens in a new tab). Three conditions apply to the claim:

• There must be actual physical contact between the unknown vehicle and you or your property.
• Physical contact isn't required when an eyewitness other than you corroborates your description of how it happened.
• You, or someone on your behalf, must report the accident as Georgia law requires, under O.C.G.A. § 33-7-11(c) (opens in a new tab).

If a lawsuit is needed, it can be filed against the unknown driver as "John Doe," and your UM insurer is served as though it were a named defendant. Right after the crash, OCI's auto claim tips (opens in a new tab) say to notify the police immediately, collect names and contact details from passengers and witnesses, and notify your insurer or agent as soon as possible, even if someone else caused the accident.

Notice, lawsuits and claim delays

When you sue a known at-fault driver and reasonably believe the vehicle is uninsured or underinsured, a copy of the lawsuit must be served on your UM insurer, under O.C.G.A. § 33-7-11(d) (opens in a new tab). If that belief only arises after the suit is filed, the insurer must be served within the remaining time for valid service on the defendant or 90 days after you learned, or should have learned, that the vehicle was uninsured or underinsured, whichever is longer. The UM carrier then has at least 120 days to gather evidence before a hearing on the merits.

A UM policy can't require arbitration, and it can't restrict you from hiring a lawyer or going to court, under O.C.G.A. § 33-7-11(g) (opens in a new tab). If an insurer refuses to pay a covered loss within 60 days after your demand and the refusal is found to be in bad faith, the insurer can owe up to 25 percent of the recovery or $25,000, whichever is greater, plus reasonable attorney's fees. The 2021 change that added the $25,000 figure applies to causes of action that arose on or after July 1, 2021.

Deadlines in a lawsuit turn on your specific facts. For claim and filing timelines in your case, talk with your insurer and a Georgia attorney.

Keeping the policy active

UM coverage only helps while the policy is in force. Georgia DOR treats 10 or more consecutive days with no liability insurance on record as a lapse, charges a $25 lapse fine and can suspend the vehicle's registration, according to DOR's lapse page (opens in a new tab). Reinstating a suspended registration costs a $60 fee, or $160 after three or more suspensions within five years, plus the lapse fine, according to DOR (opens in a new tab). The Georgia insurance lapse fee article covers that process, and Georgia driving without insurance covers what happens at a traffic stop.

Checking an agent and filing a complaint

Use the Georgia insurance license lookup (opens in a new tab) to confirm an agent, agency or insurer is licensed before you share personal information. If a UM claim is denied or delayed and the insurer doesn't resolve it, you can file a complaint through OCI's Consumer Complaint Portal (opens in a new tab) or call OCI Consumer Services at (404) 656-2070 or (800) 656-2298, according to OCI's contact page (opens in a new tab). Keep the policy, the declarations page, any UM selection or rejection form, the claim number, correspondence, estimates, photos, the police report and any denial letter.

Questions to ask your agent

• Does my declarations page show added-on or reduced-by UM coverage?
• What UM bodily injury and property damage limits do I have, and how do they compare with my liability limits?
• Did anyone on the policy sign a rejection or a lower-limit selection, and can I get a copy?
• Does that election carry over to this renewal, and what happens if I add, replace or remove a vehicle?
• How would UM limits on more than one car or policy apply to a single crash?
• What deductible applies to UM bodily injury and to UM property damage?
• How does UM coordinate with collision, medical payments, health insurance and workers' compensation?
• What should I do and keep after a hit-and-run?
• How soon do I need to notify the insurer after a crash?
• What happens if the other driver has some liability insurance?

For comparisons with nearby states, see North Carolina uninsured motorist coverage and South Carolina uninsured motorist coverage. Agencies that can quote both UM forms side by side are listed in Riskado's Georgia agency directory.

Frequently asked questions

Do I really need uninsured motorist coverage in Georgia?

Georgia puts UM coverage on every auto liability policy unless a named insured rejects it in writing. It's the coverage that pays your own injuries and vehicle damage when the at-fault driver has no insurance or not enough. Whether to keep the full limits is your decision, and an agent can quote the options.

Do I need uninsured motorist coverage if I have full coverage?

"Full coverage" isn't a legal term in Georgia, so it can mean different combinations of coverage. UM is its own line on the declarations page, apart from liability, collision and comprehensive, so check that it's listed and which form it is.

Am I covered if an uninsured driver hits me?

If your policy includes UM coverage and you qualify as an insured, it can pay your losses up to your UM limits, subject to deductibles and policy terms. In a hit-and-run, physical contact or an independent eyewitness is required, along with an accident report.

Does a rejection I signed years ago still apply?

With the same insurer, a prior written rejection can carry into renewal policies. If you've changed insurers or replaced the policy, ask whether a new form was signed.

Your next step

Pull out your declarations page and find the UM line. Note the form, the limits and the deductible, then compare them with what you'd want to recover if an uninsured or underinsured driver hit you. If anything on the page is unclear, ask your agent for the signed UM form and a quote for the other option.