In Georgia, drivers can select two options for their own insurance coverage: add-on or reduced. Add-on coverage means your underinsured motorist coverage stacks on top of the at-fault driver’s in the event of a car crash. With reduced coverage, your underinsured motorist coverage is reduced by the amount the at-fault driver’s insurance pays out.
For example if you have $50,000 in reduced coverage and you obtain $25,000 from the at-fault driver, your $50,000 of possible insurance coverage is reduced to $25,000. If you had an add-on policy, you could recover up to $75,000.
This distinction is small in terms of the price of your premium, but very important if you are ever hurt by someone without enough insurance. For questions about insurance or coverage call 678-365-3397.