Why Our Client's Should Support Senate Bill 276 in the Georgia Legislature.

February 29, 2008 - Some recently proposed legislation may have a significant impact on how uninsured motorist coverage will affect Georgians. Senate bill 276 is good legislation which could have the effect of helping Georgians in auto accidents. Here’s how it works:

If you are an innocent person driving down the road, and you are in a wreck through no fault of your own, the at-fault driver may not have enough liability insurance to compensate you. Under Georgia law, you can look to your uninsured motorist coverage to compensate you.

But here’s the problem: Under the current law, you, the innocent driver, can only access your uninsured motorist coverage if your policy is greater than the at-fault driver’s liability coverage. For example, suppose you have a wreck and $50,000.00 in lost wages and bills, and the guy who hit you only has $25,000.00 in liability coverage, while  you have $25,000.00 in uninsured motorist coverage. Under the current law, you would get $25,000.00 from the at-fault driver’s insurance company, but you cannot use any of your uninsured motorist coverage. This is because under the law, your uninsured motorist coverage only applies to the extent that it exceeds the at-fault driver’s liability coverage. So, in this example, you would not be entitled to any of the uninsured motorist coverage that you paid for because it is not more than the wrongdoers coverage.

Uninsured motorist coverage is much better in other states. In as many as 23 other states in the United States, you are allowed to stack uninsured motorist coverage on top of liability insurance. What this means is that a person can access his uninsured motorist coverage on top of the at-fault driver’s insurance, or stack (as it is known in the insurance industry). In the example above, you, the innocent driver, would be able to access the coverage of the entire $50,000.00 in damages.

Senate Bill 276, proposed by Georgia Senator Cecil Staton and House Representative David Ralston, will allow Georgians to stack their uninsured motorist coverage on top of liability coverage up to the limit of the actual damages. It is good legislation that would help Georgia consumers. Of course, it is opposed by the insurance industry because it means that they will have to pay more on claims. We encourage our clients to come out in support of Senate Bill 276 as it will allow our clients who are in a serious accident to have access to their uninsured motorist coverage in addition to the liability coverage of the other driver.

With any questions or concerns about the information contained in this article, please do not hesitate to contact our office or order our free booklet on "How to Buy Car Insurance in Georgia."