Brad : I live in Georgia and a friend of mine was telling me that I should take an Uninsured motorist coverage since I would be at an advantage. Can you let me know more of this. What is stacking of limits? How will this affect my auto insurance?

Response : You need to constantly compare auto insurance quote both for coverage and also the rates. You need to take an uninsured motorist coverage to get the benefit if someone who is uninsured gets involved in an accident with you and injuries you and he is at fault. Let me show you how it would work for you if this happens. Presently there are a lot of people in USA who do not have an auto insurance policy and are uninsured.

In Georgia, underinsured motorist protection falls within the uninsured motorist statute.
Prior to the effective date of the new statute [January 1, 2020] an insured can only access up to the difference in the liability provided by an at-fault driver’s liability policy limits and the limit provided the insured under his/her uninsured motorist coverage. Thus, if the at-fault driver had a $50,000 liability limit and the not at-fault other driver had an uninsured motorist limit of $100,000, the maximum protection for the not at-fault driver from his/her uninsured motorist coverage is only $50,000. The insured taking coverage from his/her uninsured motorist limit is not entitled to the full limit provided under current law.
At-fault driver = $50,000 Liability Payment
Not at-fault driver = $100,000 UM Limit
Payment due from UM Coverage = $100,000 – $50,000 = $50,000¹
In the same loss situation above, if the at-fault driver had a $50,000 liability limit and the not at-fault driver had a $50,000 uninsured motorist limit, the not at-fault driver would not be entitled to any payment under his/her uninsured motorist coverage.
At-fault driver = $50,000 Liability Payment
Not at-fault driver = $50,000 UM Limit
Payment due from UM Coverage = $50,000 – $50,000 = 0
Beginning January 1, 2020 insureds will be able to get the benefit up to their full uninsured motorist limit when an at-fault uninsured/underinsured motorist is responsible for damages. The change simply means that the full amount of selected uninsured motorist limits can be used as an additional limit of coverage, without offset, from the liability limit of the underinsured at-fault motorist. For the examples above the formulas would change as follows:
At-fault driver = $50,000 Liability Payment
Not at-fault driver = $100,000 UM Limit
Payment due from UM Coverage = $100,000

Beginning January 1, 2020 the Uninsured Motorist statute expressly allows an insurer to “exclude”[offset] personal or bodily injury or death payments for which the insured has been compensated “pursuant to medical payments or workers’ compensation laws.”

The premium payable for this coverage of uninsured motorist is very less almost meger compared to the advantage you can obtain if this accident takes place. Make sure you compare car insurance quotes and review auto insurance coverage to ensure that you have taken the Uninsured Motorist coverage.
Good luck.
Kamlesh

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