Many drivers do not realize that Georgia law may allow them to combine coverage from multiple uninsured or underinsured motorist policies to increase the total amount of compensation available for their harm.
If you have been involved in a serious car accident in Georgia, you may be wondering if there is enough insurance coverage to fully compensate for your injuries. The practice of “insurance stacking” may help to put your mind at greater ease.
What does this mean, practically?
Uninsured motorist coverage, often called UM coverage, applies when the at-fault driver either has no insurance or does not have enough coverage to pay for the full extent of your damages. In Georgia, UM coverage can sometimes be stacked, meaning that you may be able to add together the policy limits from more than one vehicle or policy.
Stacking often applies when an injury victim has multiple vehicles insured under separate policies or when multiple policies exist within their household. For example, if you have two cars, each with UM coverage, you may be able to combine those limits to create a larger pool of available funds. In some situations, you may also be able to access coverage under a policy held by a resident family member, depending on the policy language.
However, the ability to stack coverage depends on how any particular policy is written. Georgia recognizes two main types of UM coverage: “added-on” coverage and “reduced-by” coverage. Added-on coverage allows you to recover your UM limits on top of the at-fault driver’s liability coverage, which can significantly increase the total compensation available. Reduced-by coverage, on the other hand, reduces your UM limits by the amount of the at-fault driver’s insurance, which can limit how much stacking ultimately helps.
Stacked UM coverage can apply to several types of damages, including medical expenses, lost wages and, in qualifying cases, pain and suffering. Because serious accidents often involve costs that exceed a single policy’s limits, stacking can make a meaningful difference in covering long-term care needs and financial losses.