Even though they do a horrible job explaining it, the AJC mentions one less-publicized provision in Georgia’s new auto insurance law which is definitely worth noting:
The so-called “stacking provision” in SB 276 will allow you to piggy-back your uninsured/underinsured motorists protection onto another motorist’s policy. That way, if you’re hit in an accident and the at-fault driver has no insurance or not enough insurance to cover damages and expenses, your policy would make up the difference to the extent of your policy’s limits.
After the the new law takes effect, you’ll have three options when you renew your auto insurance:
- Get the stacked coverage;
- Leave coverage to the limits of the at-fault motorist’s policy;
- Decline having uninsured/underinsured motorists coverage at all.
If you already have uninsured/underinsured coverage when your policy comes up for renewal, you’ll automatically be signed up for the stacked option unless you opt out of it.
Unless Georgia is weirder than I realize (and with a disclaimer that I am neither a lawyer nor an insurance agent), the AJC didn’t do a good job explaining the change.
Generally, Uninsured/Underinsured Motorist coverage pays either (the difference between your limit and the at-fault driver’s limits), or (the amount of your loss, less whatever was paid from the at-fault driver’s insurance), whichever is greater. So, if you suffer a carry $100,000 UM/UIM, and the at-fault driver only carries $25,000, the most that you will recover under UM/UIM is $75,000, the difference between the two limits.
I believe SB276 provides the option for your limits to be on-top-of the at-fault’s driver. In my above example, if you have “stacked” $100,000 UM/UIM limits and are hit by a driver carrying $25,000 limits, you could recover up to $125,000.
Speaking from personal experience, in a serious accident, the auto insurance limits can be exhausted very quickly (especially if the other driver only has minimum limits). The added UM/UIM coverage is generally cheap, and most folks think its a good buy.
I’m a little troubled by the use of the term “stacking”. “Stacking” more commonly refers to the legal interpretation in some states that says if you pay a UM premium by vehicle, your UM coverages can be stacked one on top of the other to provide increased limits. In other words, in some jurisdictions, if you buy $100k UM and have a 4 car policy, a judge may rule that you actually have $400k in coverage. It’s a great feature for the consumer, but it’s also a potentially nasty surprise for the insurer if that added risk hasn’t been contemplated in its rates.
