The state of Georgia requires all drivers to carry auto insurance. Unfortunately, many only carry $25,000 for Bodily Injury Liability, while some motorists do not even have auto insurance. This means regardless of the extent of your medical bills, or the severity of your injuries, you will only recover $25,000 from an at-fault driver’s policy if the at-fault driver has state minimum coverage. In this common scenario, it is critical that uninsured motorist coverage is available.

When Can You Use Uninsured Motorist Coverage?

UM coverage applies under a number of scenarios: (1) the at-fault driver was uninsured, (2) the at-fault driver’s insurance company denied coverage, and (3) the at-fault driver committed a hit-and-run and was not caught.

Two Types of Uninsured Motorist Coverage

1. “Excess” or “Add-On”

Excess coverage, sometimes referred to in policies as “add-on” coverage, applies in addition to the limits of the at-fault driver’s coverage. Take for example an at-fault driver who has $50,000 in liability coverage. If an injured person’s case value exceeds the $50,000 policy limits, then uninsured motorist coverage applies. If the injured person has $50,000 in excess uninsured motorist coverage, then this means that the injured person has a total of $100,000 in insurance coverage that is available.

2. “Reduced By”

Reduced by coverage applies only if uninsured motorist coverage is more than the at-fault driver’s coverage. If a policy is “reduced by,” then the policy coverage is reduced by the limits of the at-fault driver’s coverage. Take for example the same scenario above, where the at-fault driver has $50,000 in policy limits. If the injured person has $50,000 in uninsured motorist coverage, but the insurance policy is a “reduced-by” policy, then this means that the injured person has a total of only $50,000 in insurance coverage that is available to pursue. This is because courts hold that the $50,000 in uninsured motorist coverage is reduced by the $50,000 in liability limits, which means $0 is available in uninsured motorist coverage. 

How to Use UM Coverage for Your Case Even if it is Not on Your Own Policy

What if you are injured by a hit-and-run driver, or a driver who failed to obtain insurance coverage, and you do not have uninsured motorist coverage? There are other ways to recover money for your injuries by using uninsured motorist coverage.

1. If You are a Driver or Passenger in A Vehicle that Has Uninsured Motorist Coverage

This applies in rideshare cases such as Lyft or Uber, which each have $1 million in uninsured motorist coverage for passengers who are transported for each company.

2. If Another Person’s UM Policy Names You

This is straightforward. This often applies in cases such as when a parent’s uninsured motorist policy names a child for coverage. Children who are drivers or passengers in a vehicle that the parents do not own may claim their parents’ UM coverage if their parents name them on their policy. This applies regardless of whether the child is an adolescent, teenager, or adult.

3. Your Employer’s Uninsured Motorist Policy

In many cases, a vehicle provided by your employer may provide you with uninsured motorist coverage. Georgia courts have issued several favorable rulings when determining the applicability of UM coverage. Also, O.C.G.A. § 33-7-11 mandates coverage even when the employer’s policies do not list the subject vehicle.

Take for example Doe v. Rampley, where the decedent, an insured under the employer’s UM policy, was driving a truck furnished by his employer. It did not matter to the Court that the vehicle was owned by a third party and that the vehicle was not listed as a covered vehicle under the policy. What the Court did factor, however, was that the employee was driving a vehicle that was furnished by his employer. Doe also held that the coverage attaches to the insured regardless of his location, as far as the injured person need not be in the insured automobile. Wagner v. Nationwide Mutual Fire Ins. Co. cited Doe v. Rampley and agreed with Hinton in its holding that “uninsured motorist statutes are remedial in nature and must be broadly construed to accomplish the legislative purpose.”

Also, in White v. Metro. c. Ins. Co., 266 Ga. 371, 373 (467 SE2d 333) (1996), the Georgia Supreme Court held that UM coverage for an injury caused by an uninsured motorist could not be excluded, although the vehicle occupied by the injured person was owned by another company and had been deleted from the insured’s automobile policy. White v. Metro. c. Ins. Co., 266 Ga. 371, 373 (467 SE2d 333) (1996) (Emphasis added).

4. If You Reside in The Same Household with A Relative Who Has UM Coverage

In determining whether a relative is a resident of the named insured’s household, a court considers both the language of the insurance policy and the details of the family’s living arrangements. Daniel v. Allstate Ins. Co., 290 Ga. App. 898.

Georgia’s resident relative UM provisions can apply to your case in a number of ways:

• This rule applies to spouses who live in the same household, even when one is not on the other’s UM policy.
• Siblings may also avail themselves of the resident relative rule.
• It is even possible for adult stepchildren to avail themselves of the resident relative rule for getting uninsured motorist coverage. Boston v. Allstate Ins. Co., 218 Ga. App. 726.
• In the context of extended family, “the husband is related by affinity to the blood relatives of the wife, and the wife is likewise related to the blood relatives of the husband. Rutledge v. Auto-Owners Ins. Co., 249 Ga. App. 361. Furthermore, uninsured motorist coverage applies not only to the owner of an insured automobile but to his spouse and relatives of either if they live in his household. It covers them while riding in the insured car, or in any other automobile, or while pedestrians if an uninsured motorist causes the injury. American Protection Ins. Co. v. Parker, 150 Ga. App. 732, 258 S.E.2d 540 (1979).
• The named insured and, while a resident of the same household, the spouse of any such named insured and relatives of” are insured persons even where the “insured automobile” is not in any way involved in the insured’s injuries. Gulf Am. Fire & Cas. Co. v. McNeal, 115 Ga. App. 286, 154 S.E.2d 411 (1967).

Courts Do Not Require Permanent Residence of The Relative in Question.

            See, for example, Boston v. Allstate Ins. Co., where the court held that evidence that the insured’s stepson intended to live in his stepfather’s house until his divorce was final created a question of fact as to whether he was a “resident relative” at the time of the accident; neither the policy language at issue nor state law required the stepson to live with his stepfather permanently in order to qualify. 218 Ga. App. 726, 463 S.E.2d 155 (1995).