In the realm of car accidents, insurance plays a crucial role in ensuring that victims are compensated for their injuries and losses. However, not every driver on the road carries sufficient insurance. This is where uninsured motorist (UM) and underinsured motorist (UIM) coverage becomes essential.

At Injury Enterprise LLC, we want to emphasize the importance of having these coverages and ensuring that all legal bases are covered to protect you financially in case of an accident.

What is Uninsured Motorist (UM) Coverage?

Uninsured motorist coverage steps in when you’re involved in an accident with a driver who has no liability insurance. This coverage pays for your medical expenses, lost wages, and other damages if the at-fault driver cannot cover these costs because they lack the required insurance.

According to the Insurance Research Council, about 12% of drivers in Georgia are uninsured, making UM coverage an essential safeguard. Without it, you could be left to cover medical bills and repair costs out of your own pocket.

What is Underinsured Motorist (UIM) Coverage?

Underinsured motorist coverage applies when the at-fault driver has liability insurance, but their coverage limits are insufficient to cover the full extent of your damages. For example, if you are seriously injured in an accident, and the other driver’s insurance covers only $25,000, but your medical bills total $75,000, your UIM coverage can step in to bridge the gap.

Why is UM and UIM Coverage Important?

1. Protection from Uninsured Drivers: Not every driver on the road complies with state insurance requirements. UM coverage ensures that you aren’t left paying out-of-pocket for injuries caused by uninsured drivers.
2. Fills the Gap Left by Insufficient Insurance: Many drivers carry only the minimum insurance coverage, which may not be enough in the case of serious accidents. UIM coverage helps make up the difference, ensuring that you receive full compensation for your medical bills, lost wages, and other accident-related expenses.
3. Covers Hit-and-Run Accidents: UM coverage can also protect you if you’re the victim of a hit-and-run accident. If the responsible driver flees the scene and cannot be identified, your UM policy will provide compensation for your injuries.
4. Extends to Pedestrians and Passengers: These coverages don’t just apply when you’re in your car. They also extend to pedestrians, cyclists, or passengers who may be injured in accidents involving uninsured or underinsured drivers​.

Why It’s Important to Have a Signed Selection/Rejection Form

When purchasing auto insurance, your provider is required to offer you UM and UIM coverage, but you have the option to reject this coverage. If you choose not to carry UM/UIM, it is crucial that you sign a selection/rejection form. This form confirms your decision to reject the coverage, and without a properly signed form, insurance companies may be required to provide you coverage even if you opted out.

Here’s why having a signed selection/rejection form is important:

1. Legal Clarity: Having this form on file ensures there’s no ambiguity in your coverage. If a dispute arises, the signed document serves as legal proof of your decision.
2. Avoid Future Complications: Without this form, you could face challenges when filing claims. If UM/UIM coverage was not properly rejected in writing, you might be unintentionally entitled to coverage, causing complications during a claim process.
3. Prevents Coverage Denials: Insurers are required by law to obtain a signed rejection form if you decide to forgo UM/UIM coverage. If this form is missing, insurers may attempt to deny claims, leading to lengthy legal battles.

Uninsured and underinsured motorist coverage is not just another line on your auto insurance policy — it’s a financial safeguard against drivers who either lack insurance or carry insufficient coverage. Furthermore, if you choose to reject this protection, ensure that your selection/rejection form is signed and properly documented to avoid any legal issues down the line.

If you’ve been in an accident involving an uninsured or underinsured driver, contact Injury Enterprise LLC today. Our experienced team is here to help you navigate the complexities of your insurance policy and get the compensation you deserve.