What is the difference between uninsured and underinsured motorist coverage in Georgia?
These two terms describe different problems that the same part of a Georgia auto policy solves. Both fall under O.C.G.A. § 33-7-11, and in Georgia they are usually written together as a single coverage rather than sold as separate products. The distinction lies in why the at-fault driver cannot fully pay.
Uninsured: no liability coverage at all ¶
The “uninsured” situation is the simpler one. The driver who caused the crash has no liability insurance, whether because the policy lapsed, never existed, or does not apply. With no liability policy to turn to, the injured person looks to their own UM coverage to pay for medical bills, lost wages, and other damages, up to the UM limits they carry. A hit-and-run by an unidentified driver is also treated within the uninsured category, subject to the statute’s contact-or-corroboration rules.
Underinsured: some coverage, but not enough ¶
The “underinsured” situation arises when the at-fault driver does have liability insurance, but the limits are too small to cover the harm. Georgia’s UM statute defines an “uninsured motor vehicle” broadly enough to include this case, so the same coverage responds. Here, the injured person first looks to the at-fault driver’s liability policy, and the UM coverage addresses the shortfall above it.
A short illustration shows the idea. If an at-fault driver carries the state-minimum 25,000 dollars in liability coverage but the injuries are worth far more, that driver is underinsured, and the claimant’s own underinsured motorist benefits can help fill the gap, subject to how the policy is structured.
How the two relate in one policy ¶
Because Georgia folds underinsured coverage into its uninsured motorist statute, a single UM limit on the declarations page usually addresses both scenarios. The practical differences that follow are mostly about mechanics:
- With a truly uninsured driver, there is no liability policy to coordinate with, so UM stands alone up to its limit.
- With an underinsured driver, the UM coverage interacts with the liability payment, and how it does so, whether it adds on top of that payment or is reduced by it, depends on the type of UM coverage the insured selected.
The bottom line ¶
In Georgia, “uninsured” means the at-fault driver has no liability coverage, while “underinsured” means they have some but not enough; O.C.G.A. § 33-7-11 covers both through one UM coverage. The key difference in practice is whether there is an at-fault liability policy to coordinate with, which shapes how the UM benefit is calculated.
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.