Georgia Passes Legislation Giving Consumers What They Paid For With Uninsured Motorist Coverage

April 8, 2008 - PRLog -- Georgia residents are a Governor’s signature away from having full access to their Underinsured Motorist coverage (“UM”) in their automobile insurance policies.  The Georgia Senate voted on Thursday, March 6th to pass the House’s legislation to amend the UM statute.  The law used to only allow an Insured to have his/her UM coverage less the other driver’s coverage.  For example, if you are hit by another driver and have $75,000 in UM coverage and the other driver only has the required minimum coverage of $25,000, you were only entitled to $50,000 of your UM insurance – not the entire $75,000.  This is known as the “Reduction Rule” because your coverage is reduced by the other driver’s policy.

  “This change would finally give the consumer full access to the most important insurance you can purchase - insurance that protects families from drivers who do not carry enough insurance,” says David J. Brauns, a former insurance company attorney who now devotes his practice to only representing injured people and who has gone before the Georgia Court of Appeals on this very issue.  “Most people are shocked when they pursue their UM insurance after an accident and realize they have been paying premiums on coverage they may not have full access to.  The change in the law would provide the peace of mind that consumers have additional protection against uninsured and underinsured motorist for the full amount on which they have been paying premiums.”

  While the insurance industry has argued this change will raise rates, Mr. Brauns notes that UM coverage is optional (but highly recommended) and no one would be forced to pay a higher rate for this type of insurance, if rates do in fact increase.  Mr. Brauns says, “This change lets Georgia join twenty-three other states, including Alabama and Florida, who allow consumers to get what they paid for.”  

Once signed, the law will become effective for policies issued or renewed after January 1, 2009.  To learn more about how UM insurance currently operates in Georgia, visit http://www.braunslaw.com/uninsured_motorist_coverage_in_g...

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Brauns Law is a boutique personal injury firm which litigates select cases towards maximum value.  For more information, visit http://www.braunslaw.com