How The Auto Ins. Law Affects You

How the Auto Insurance Law Affects You

By Lance A. Cooper

Did you know that the Georgia legislature passed a law that could save you tens of thousands of dollars – and some unnecessary headaches?

It’s true. An insurance law allows Georgians to buy uninsured motorist coverage that stacks on top of liability coverage.

Here’s how it works: If you are injured in an accident which is not your fault, the driver who caused the accident is responsible for all harm caused. You probably already knew this but what you might not have known is that he might not have enough insurance to cover your losses. Fortunately, now there’s an easy solution – if you know what to ask for!

Here’s an example of how this works: Let’s assume that, with the accident, your medical bills and lost wages total $40,000. Suppose the at-fault driver has $25,000 in liability insurance. If you do the math, you’ll see that you’re now out $15,000! Under the old law, even if you had $25,000 in uninsured motorist insurance, you would not be permitted to stack this coverage on top of the driver’s liability coverage. So, your $25,000 would be worthless!

Under the law, however, you are permitted to stack your $25,000 in uninsured motorist coverage on top of the $25,000 liability insurance for a total of $50,000 in benefits. The law gives you this “stacking” option. Therefore, it’s critical that when you next purchase or renew your automobile insurance that you tell your agent that you want the stacking option. If you do not, you will be buying uninsured motorist coverage that is essentially worthless. The insurance companies will sometimes try to sell you this lousy coverage because they earn a premium and know they have little to no chance of ever paying out dollars on your behalf.

Therefore, remember the phrase, “I WANT STACKING UNINSURED MOTORIST COVERAGE!” Don’t let your agent talk you out of this coverage. Of course, you may have additional questions about your insurance. If so, please do not hesitate to contact our office and we will be happy to discuss this further with you.

Remember that knowledge is power, and it’s up to you to stay ahead of the game!


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