How Car Insurance Works– UM Coverage and Redued UM Coverage

August 10, 2014 No Comments by johnmixon

If I could give all Georgia residents one piece of advice it would be to Make Sure You Have Add-On UM Coverage and Not Reduced UM.

UM coverage is the insurance that you carry on your own vehicle should you be hit by a driver that either: a) has no insurance, or b) does not have enough insurance to cover the cost of your medical bills.

Neighboring states like South Carolina offer UM and UIM with one covering uninsured and the other covering under-insured.  In a State like South Carolina if you pay for UM and/or UIM then in the event of a wreck you get that money should your injuries dictate.  However, in Georgia the insurance companies have used their influence to have laws written in such a manner as to allow them to avoid paying you that money.

When you purchase your car insurance the seller will try to convince your that you should take “Reduced UM” coverage.  The agent will try to convience you that taking this reduction will save you money.  In truth it will save you money maybe 10 or 20 dollars a month.  However, if you are in a catastrophic accident and you amass $300,000.00 or more in medical bills you will stuck holding the bag.  What the agent never tells you is “Hey this will save you a little money now; of course if you are in a catastrophic accident then we will deny paying you anything.”  Essentially the insurance companies have found a loop hole that forces you to pay them each month while hedging their bet should you have a major accident.

If you have Reduced UM coverage and you are in a major car wreck you could lose out on anywhere from $25,000 to $300,000 depending on your individual policy.  What the agent did not mention while pushing reduced UM on you is that you would have to stay with your insurance company and pay them each month for a couple of hundred years in order to save the amount of money that you will lose in the event of a serious automobile accident.

Most people have no real idea of how insurance works and trust me when I tell you that the insurance companies like it that way.  If your agent is oushing Reduced UM onto you simply ask them “Do you carry Reduced UM?”  They will either have to lie or lose out on the incentives offered to them for getting you to take Reduced UM coverage.

If you have been the victim of a car wreck, motorcycle accident, or 18-wheeler wreck don’t try to handle it without someone in your corner that understands the insurance companies tricks.  Let John Mixon and Associates be your auto accident attorneys today.  Call us right now at 706-724-9999 or toll free at 1-800-727-1234.  Let our knowledge go to work for you today!

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