A lot can go wrong on the
road. All it takes is one moment of inattention, one miscalculation, one road
hazard or one mechanical malfunction. Even a good driver can get into a crash.
That’s why every driver needs auto insurance. If you live in Georgia, these are
the car insurance requirements.
Liability Coverage – Is Required by the State of Georgia
If you cause a crash, you
will be responsible for the property damage and injuries suffered by others. To
ensure that you are capable of paying, you must carry liability auto insurance.
Like other states, Georgia has minimum requirements in three different
categories:
·
$25,000
for bodily injury per person
·
$50,000
for bodily injury per occurrence
·
$25,000
for property damage
Keep in mind that the above
amounts are the minimum requirements. You may want more. Imagine what would
happen if you caused a crash involving two other expensive vehicles. The
property damage could easily exceed $25,000. Likewise, given the high cost of
medical care in the United States, bodily injury costs could easily exceed
$25,000 per person or $50,000 per occurrence, especially if more than two
people are involved.
If the damage exceeds your
policy limits, you can be on the hook for the difference. For this reason, it
can be smart to carry higher limits, especially if you have assets you want to
protect.
Uninsured/Underinsured Motorist Coverage – Is Good to Have
In an ideal world, every
driver would have auto insurance, and uninsured motorist coverage wouldn’t be
necessary. Unfortunately, many drivers go without insurance, even though this
puts them at considerable risk for fines, license suspension and registration
suspension.
According to estimates from
2015, approximately 12 percent of drivers in Georgia don’t have insurance.
Because uninsured drivers generally don’t have much money, you will have a hard
or impossible time recovering any damages if an uninsured driver hits your car.
This is why it’s smart to
carry uninsured motorist coverage. Similarly, underinsured motorist coverage
protects you in case the damages exceed the at-fault driver’s insurance limits.
Other Coverages – May be Required if You Have A Car Loan
The coverage types listed
above do not cover your car for any damage you cause unintentionally, nor does
it cover you for other types of losses. For that, you need additional coverage.
·
Collision
insurance provides coverage for damage to your car resulting from an accident.
These accidents may or may not involve another vehicle. For example, you could
hit a tree.
·
Comprehensive
insurance provides coverage for other types of damage. For example, if your car
is stolen or vandalized, comprehensive coverage will cover you. Comprehensive
coverage also provides protection against damage caused by fires, falling
objects, weather-related events and animals.
Although these coverage types
are not required by state law, they may be required by a lender if you have a
car loan. After all, you don’t want to have to owe money on a car that’s been
destroyed.
If you have a loan on a new
car, you may also need gap insurance. The value of your car depreciates
quickly. If your car is stolen or suffers a total loss, the insurance payout
may be less than what you owe. Gap insurance provides coverage for this
difference.
Wondering if you have the
right auto insurance coverage and the best price? Find out now. Get an
online auto insurance quote.
Sources:
·
https://www.oci.ga.gov/ConsumerService/AutoInsurance.aspx
https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists