How does add-on UM coverage sit on top of the at-fault driver’s limits in Georgia?
Add-on uninsured motorist coverage is valuable precisely because it does not give the at-fault driver’s insurer a discount against the injured person’s own benefits. Rather than blending into the liability payment, add-on UM under Georgia’s framework layers on top of it, so the two sources combine instead of overlapping.
Two layers, not one ¶
With add-on coverage, the at-fault driver’s liability insurance forms the first layer of recovery and the injured person’s UM coverage forms a second layer above it. The liability payment is not subtracted from the UM limit. That means the maximum potential recovery from insurance is the at-fault driver’s applicable liability limit plus the full UM limit, capped by the claimant’s actual damages.
A concrete example makes the stacking clear. Suppose a claimant carries 100,000 dollars in add-on UM and is badly hurt by a driver with 25,000 dollars in liability coverage, with damages well above both figures. The claimant can receive the 25,000 dollars from the at-fault insurer and then turn to the UM coverage for up to 100,000 dollars more, for as much as 125,000 dollars from insurance combined. Under reduced-by coverage, by contrast, the same UM limit would be cut by the 25,000 dollar payment.
The mechanics of collecting ¶
Because add-on coverage sits above the liability layer, the typical sequence is straightforward:
- The injured person pursues the at-fault driver’s liability coverage first.
- The UM insurer is kept informed of the claim and any settlement, since insurers usually have a contractual right to notice and an opportunity to protect their subrogation interest before a liability settlement is finalized.
- The UM coverage then responds for damages above the liability payment, up to the UM limit.
Following the policy’s notice and consent steps matters, because failing to give the UM insurer the required opportunity before settling with the at-fault driver can jeopardize the UM claim.
Why the distinction is worth more than it looks ¶
Two policies with identical declared limits can pay very different amounts depending on whether the UM is add-on or reduced-by. Add-on coverage preserves the full UM limit on top of whatever the liability insurer pays, which is most valuable exactly when the at-fault driver actually carries some coverage.
The bottom line ¶
Add-on UM coverage in Georgia stacks on top of the at-fault driver’s liability limits, so recovery can reach the liability payment plus the full UM limit, up to actual damages. Collecting it means pursuing the liability coverage first while giving the UM insurer the notice the policy requires, then drawing on UM for the remaining loss.
This article is for general educational and informational purposes only and is not legal advice. It does not create an attorney-client relationship, and Georgia law may change. For advice about a specific situation, consult a licensed Georgia personal injury attorney.