Underinsured motorist (UIM) coverage in Georgia

Georgia’s statute has no separate UIM coverage. Under O.C.G.A. § 33-7-11(b)(1)(D)(ii), a driver with liability insurance is treated as uninsured to the extent the statute’s formula allows, so the coverage called UIM is uninsured motorist coverage applied to an underinsured driver. Whether it adds to the other driver’s limits or only fills a difference depends on the form on your policy. A written rejection of the coverage removes it.

The two forms

Feature	Add-on, subdivision (I)	Reduced-by, subdivision (II)
How selected	The default, unless rejected	"select in writing"
What it pays	The UM limits "in addition to" available liability coverage	Only the difference between the liability coverage and the UM limits
Duplicate payments	Not allowed	Not allowed
When UM limits are at or below the liability limits	Still available	Nothing to pay

For example, imagine damages of $200,000, an at-fault driver with $25,000 in liability coverage, and $100,000 in UM coverage.

Form	UM pays	Liability pays	Total
Add-on	$100,000	$25,000	$125,000
Reduced-by	$75,000	$25,000	$100,000

Now imagine the other driver has $100,000 and you have $100,000 in reduced-by coverage. The difference is zero, so UM pays nothing. Add-on coverage would still add up to $100,000. A declarations page may not use either phrase clearly, so ask the insurer in writing which form applies.

Under the statute, the 2008 change took effect for policies issued or renewed on and after January 1, 2009, and § 33-7-11(b)(1)(D)(ii)(III) says add-on coverage need not be provided on renewal if the named insured rejected it earlier. In McConville v. Cotton States, 315 Ga. App. 11 (2012), the amendment did not help an accident before the insured’s renewal.

When the coverage responds

The questions, in order:

1. Is there coverage? Section 33-7-11(a)(1) requires the endorsement unless “any insured named in the policy” rejects it in writing, under (a)(3). The insured may also choose limits below the liability limits, under (a)(1)(B). Umbrella and excess policies are excluded “unless affirmatively provided”.
2. Is this person an insured? The definition in (b)(1)(B) includes the named insured, a resident spouse and relatives, permissive users, and guests in the insured vehicle.
3. Does the at-fault driver’s coverage leave a loss? The coverage pays what the insured is legally entitled to recover, within limits, and not what the other policy already paid.
4. Are other policies available? Stacking is on the stacking page.

Other situations also count as uninsured under (b)(1)(D): the liability carrier has legally denied coverage, or it is insolvent. An unknown driver is treated as uninsured under (b)(2), and physical contact or corroboration rules apply. Uninsured motorist coverage covers those.

A plaintiff’s own fault still counts. A person 50 percent or more at fault has no recoverable amount under § 51-12-33(g), and a lower share reduces what is owed.

Settling with the liability carrier

A Georgia statute addresses whether a liability settlement needs the UM carrier’s consent. Under O.C.G.A. § 33-24-41.1(c), no UM policy “shall prohibit any claimant from settling any claim with a liability carrier as provided in subsection (a)” or “require the permission of the uninsured or underinsured motorist carrier to so settle”.

The protection depends on the limited release:

• The liability carrier tenders its limits, and the claimant accepts through a limited release, under (a).
• The release frees the carrier and frees the at-fault driver from personal liability “except to the extent other insurance coverage is available”, under (b)(2).
• It does not bar recovery “under any other policy of insurance” unless it says so, under (d)(1).
• The amount paid is admissible as the offset against the UM carrier’s liability, under (d)(2).

A general release is a different document and may end the UM claim. Read the release before signing, and see settlement documentation. Notice to the UM carrier is still a practical necessity, because the carrier has rights to be served and to appear.

The lawsuit and the UM carrier

Under § 33-7-11(d), when a reasonable belief exists that the vehicle is uninsured, including underinsured under (b)(1)(D), “a copy of the action and all pleadings thereto shall be served as prescribed by law upon the insurance company issuing the policy as though the insurance company were actually named as a party defendant”. The statute has a later-service path if the facts arise after suit is filed. Each carrier that may owe needs service. A person relying on UM coverage should treat this as a filing task and not an afterthought.

The policy may not require arbitration of the claim, and it may not restrict the insured “from employing legal counsel or instituting legal proceedings”, under (g).

What can reduce the payment

Section 33-7-11(i) allows a policy to exclude liability for amounts compensated under medical payments coverage or workers’ compensation, and property damage covered by other insurance. The carrier also has a subrogation right under (f) against the person who caused the injury.

If the carrier refuses to pay

There are two statutes to consider. Section 33-7-11(j) allows, after a demand and 60 days, a penalty of not more than 25 percent of the recovery or $25,000, whichever is greater, plus attorney’s fees. The issue goes to a separate action after judgment against the uninsured motorist. Section 33-4-6 is the general first-party statute. Insurance bad faith explains their differences and limits.

Choosing limits

Georgia’s minimum liability limits are low compared with what a serious injury can cost, as minimum insurance requirements sets out. A driver buying coverage can check three things on the declarations page: the UM limit, the form, and whether anyone signed a rejection or a lower selection. The last item can surprise a person who did not sign it personally, because (a)(3) refers to any insured named in the policy.

Sources

• Official Code of Georgia Annotated, November 2022 public release: §§ 33-4-6, 33-7-11, 33-24-41.1, 51-12-33
• McConville v. Cotton States, 315 Ga. App. 11

This page was last reviewed in November 2026 for general information. Laws and court decisions can change after that date. It is not legal advice and does not create an attorney-client relationship.