The Court of Appeals of Georgia recently issued an opinion in a plaintiffs’ appeal of a summary judgment order entered in favor of their insurance company. The appeal concerns the type and amount of coverage available under an insurance policy the plaintiffs purchased. The case presents common issues that Georgia injury victims face when trying to recover from at-fault drivers and insurance companies.
In 2010, the plaintiffs purchased automobile insurance in the standard coverage limits, which were $50,000 per person and $100,000 per accident. In 2012 the plaintiffs increased their standard coverage amount to $100,000 per person and $300,000 per accident. At that time, the insurance company did not offer the plaintiffs an increase of their UM coverage. About three years after the policy increase, the woman suffered serious injuries in a Georgia car accident. The at-fault driver settled with the woman at the cap of their insurance policy, which was $100,000. The amount did not cover the woman’s medical bills or her husband’s loss of consortium claim. As such, the plaintiffs filed a claim with their insurance company for the remaining balance. The couple argued that the insurance company violated a statutory duty to offer them an increase in their UM coverage when they increased their standard coverage.
Under Georgia law, automobile insurance policies must contain uninsured/underinsured motorist coverage provisions. Unless the insured affirmatively chooses a lower UM coverage amount, the amount must be at least $25,00 person and $50,00 per accident, or the level of standard coverage-whichever is higher. The statute provides that insurers offer or provide the minimum UM coverage at issuance or delivery of the policy. However, an exception exists that states that insurance companies do not need to provide the coverage as supplements to a renewal policy where the coverage was previously rejected.