Uninsured motorist (UM) and underinsured motorist (UIM) coverage are first-party benefits that an injured person can claim under his or her own automobile insurance policy when the at-fault driver either has no insurance or has insurance limits too low to fully compensate the injury. In Georgia, the coverage is governed by O.C.G.A. § 33-7-11. Although the statute is most commonly discussed in the context of car-to-car crashes, it applies equally to crashes involving commercial trucks. This guide explains how the coverage works, when it is most relevant in a truck case, and the procedural rules that injured Georgians need to know.
What the Statute Requires
Under O.C.G.A. § 33-7-11(a)(1), every automobile liability policy issued or delivered in Georgia must include UM and UIM coverage in specified minimum amounts, unless the named insured rejects the coverage in writing. The statute requires the insurer to offer coverage with limits equal to the liability limits of the policy. The insured may select lower amounts down to the statutory minimum, currently $25,000 per person and $50,000 per accident for bodily injury and $25,000 for property damage.
The statute defines an uninsured motor vehicle to include a vehicle for which there is no liability insurance, a vehicle for which the at-fault driver’s liability limits are less than the UM coverage limits of the insured (the underinsured situation), and an unidentified hit-and-run vehicle, subject to certain corroboration requirements.
“Add-On” Versus “Reduced-By” Coverage
Since January 1, 2009, Georgia law has required insurers to offer two forms of UM/UIM coverage. The choice is made by the named insured at the time of purchase.
- Add-on (or excess) coverage stacks on top of the at-fault driver’s liability limits. The UM/UIM coverage pays the difference between total damages and the at-fault driver’s coverage, up to the UM/UIM limit. Total available coverage is the sum of the two policies.
- Reduced-by (or traditional) coverage is reduced dollar-for-dollar by the at-fault driver’s available liability coverage. The UM/UIM coverage pays only the amount that the UM/UIM limit exceeds the at-fault coverage.
For a truck crash, the practical difference can be significant because most interstate motor carriers carry liability limits far above the federal minimum. An injured person with add-on coverage may collect under both policies even when the at-fault carrier’s policy is paid in full. An injured person with reduced-by coverage may collect from his or her UM/UIM policy only if damages exceed the at-fault carrier’s coverage.
How Truck Accidents Typically Trigger UM/UIM
Commercial trucks engaged in interstate commerce must satisfy the federal minimum financial responsibility requirements at 49 C.F.R. § 387.9, which set $750,000 as the floor for general freight, $5 million for many hazardous materials, and $1 million for oil. Intrastate carriers in Georgia are subject to comparable minimums under the rules of the Department of Public Safety. Many carriers maintain limits well above the minimum, often through layered policies that include primary, excess, and umbrella coverage.
Despite those minimums, several truck-related scenarios commonly leave injured Georgians turning to UM/UIM coverage:
- Catastrophic injuries with damages that exceed the carrier’s policy limits, including multiple-victim crashes where the carrier’s per-occurrence limit is divided among several claimants;
- Crashes caused by a phantom truck that left the scene, where the truck’s identity cannot be established;
- Crashes involving a small or non-compliant carrier that lacks the required filings or whose insurer denies coverage based on a policy defense;
- Crashes involving a vehicle that does not qualify as a commercial motor vehicle under federal regulations and is uninsured;
- Crashes in which coverage is contested due to scope-of-employment disputes affecting the carrier’s policy.
Stacking Multiple UM/UIM Policies
Georgia allows the stacking of UM/UIM coverages in certain circumstances. Where the injured person has more than one applicable policy (for example, on multiple household vehicles), Georgia courts have permitted stacking subject to the specific policy language and the priority rules in O.C.G.A. § 33-7-11. Add-on coverage and reduced-by coverage may be combined in the same household, although the calculations can be complex. Coverage may also be available under the policies of resident relatives.
Procedural Requirements
The procedural rules for asserting a UM/UIM claim are critical. Under O.C.G.A. § 33-7-11(d), when a lawsuit is filed against an uninsured or underinsured motorist, the injured person must serve the complaint on his or her own UM/UIM insurer as though it were a party. The insurer has the right to file pleadings and to participate in the litigation in its own name or, more commonly, in the name of the uninsured motorist. The failure to serve the UM/UIM carrier within the statute of limitations can extinguish the UM/UIM claim even though the suit against the at-fault driver is timely.
For a hit-and-run truck, O.C.G.A. § 33-7-11(b)(2) requires corroboration of the unknown vehicle’s involvement, typically through testimony of a witness other than the named insured. Reporting the crash promptly under O.C.G.A. § 40-6-273 helps establish that record.
Coordination with Liability Coverage
Under Georgia law, the UM/UIM carrier generally has the right to credit for amounts paid by the at-fault driver’s liability insurance. The injured person typically must give the UM/UIM carrier notice and an opportunity to protect its subrogation interest before settling with the at-fault carrier. Failing to follow the consent and notice procedures in the policy can defeat UM/UIM coverage. Settlement releases that fail to preserve the UM/UIM claim or that release the at-fault driver without the UM/UIM carrier’s consent have caused otherwise valid claims to fail.
Bad Faith and Statutory Penalties
If a UM/UIM carrier refuses in bad faith to pay a covered claim, Georgia law provides remedies. O.C.G.A. § 33-4-6 allows a 50 percent penalty and reasonable attorney’s fees against an insurer that refuses to pay a valid claim in bad faith, subject to a 60-day demand and other procedural requirements. The provision applies to UM/UIM insurers under appropriate circumstances.
Premium Treatment and Renewal
Under O.C.G.A. § 33-7-11, an insurer cannot raise premiums or cancel a policy solely because the insured asserts a UM/UIM claim against it. The same is true under standard Georgia personal lines policy forms approved by the Office of Insurance and Safety Fire Commissioner.
Common Mistakes to Avoid
A few recurring mistakes can compromise UM/UIM recovery in truck cases:
- Settling with the at-fault carrier’s insurer without first notifying the UM/UIM insurer of the proposed settlement and preserving the UM/UIM claim;
- Allowing the statute of limitations to expire without filing suit and serving the UM/UIM carrier;
- Recorded statements that mischaracterize the loss, the injuries, or the policy facts;
- Failing to identify all available UM/UIM policies in the household.
Georgia’s UM/UIM framework is designed to provide a safety net when a serious crash exceeds the at-fault driver’s coverage. Because truck crashes commonly produce catastrophic damages, UM/UIM coverage on the injured person’s own policy can be a meaningful additional source of recovery.
Summary
Uninsured and underinsured motorist coverage under O.C.G.A. § 33-7-11 applies to truck accidents in Georgia in the same manner as other motor vehicle crashes. The amount available depends on the policy limits, the add-on or reduced-by election, and the at-fault carrier’s coverage. Procedural rules require service on the UM/UIM insurer within the limitations period and careful coordination of any settlement with the at-fault driver.
How uninsured and underinsured motorist coverage applies in any specific case depends on the policy language and the facts of the collision.
Disclaimer
This article is provided strictly for general educational and informational purposes. It is intended to explain how Georgia law works as a matter of public legal education, and it does not constitute legal advice, a legal opinion, or a recommendation about any particular course of action. Reading this article, or contacting the website on which it appears, does not create an attorney-client relationship between the reader and any law firm, attorney, or author.
The law changes over time. Statutes, regulations, court rules, and judicial decisions discussed here may have been amended, repealed, superseded, or reinterpreted after the date of publication, and citations to specific code sections or cases reflect the law only as it was understood when this article was written. The application of any legal principle also depends heavily on the specific facts and circumstances of an individual matter, and outcomes vary from case to case.
For these reasons, no one should rely on this article as a substitute for advice from a licensed Georgia attorney who can review the particular facts involved. The author and publisher make no warranty, express or implied, regarding the accuracy, completeness, timeliness, or applicability of the information provided, and disclaim any liability for any action taken or not taken based on this content.