Uninsured/underinsured motorist (UM) coverage is a first-party insurance coverage that protects you from financial loss which occurs after an auto accident when the party responsible for the accident was not covered by a liability insurance policy or was covered by a liability policy which was inadequate to fully compensate you. Underinsured coverage would apply, for example, in an automobile accident where the at-fault party was covered by a liability insurance policy with limits in the amount of $25,000, but resulting losses totaled $40,000. In that situation, where the at-fault party’s liability limits were exhausted, your UM insurer may pay the remaining damages. However, the extent of UM benefits available would depend on the UM limits provided by your policy and whether the UM coverage is traditional or add-on.  In Georgia, UM insurance is not mandatory, but it must be offered to you by your insurance carrier. By default, your insurance policy will afford UM coverage that is equal to the limits of your liability coverage unless you affirmatively choose to reject the coverage or opt for lesser limits pursuant to O.C.G.A. § 33-7-11.