Do you have enough liability insurance to drive in Georgia?
Driving is a risky activity, far more so than flying. While driving, you must keep your eyes on the road and watch out for unexpected maneuvers made by other road users. You should also look out for potholes and other hazards.
Whether you caused it or not, getting into an accident has several unpleasant consequences. Georgia is an at-fault state, which means that if you cause an accident, you are legally liable for the other driver’s damages (and vice versa).
Therefore, you must have enough liability insurance before you take to the streets in the state. It is not only a legal requirement but can also help protect your financial well-being in case of an accident.
If you do not have enough liability insurance, another driver can sue you personally for their damages. This can make you financially unstable, considering the high costs of medical treatment and car repairs.
Georgia’s car insurance laws
Georgia requires all drivers to carry minimum liability insurance. Like most other states, Georgia enforces its own minimum coverage limits:
- $25,000 per person
- $50,000 per accident
- $25,000 for property damage
While having this minimum liability insurance in place is important, it most likely will not cover all damages after an accident. This is why you should add coverage to ensure you are financially protected.
The point of liability insurance is to ensure drivers can compensate victims of car accidents. Yet, as explained, liability insurance protects victims and at-fault drivers. When drivers have enough insurance, they will have fewer out-of-pocket expenses. It also minimizes the risk of being sued directly.
However, in Georgia, minimum liability insurance limits are a point of contention for many drivers and victims. They only realize this after an accident has already happened.
This is why ensuring your current coverage is enough or getting more insurance if you need it is important.
What does liability insurance cover?
Liability insurance covers a victim’s damages and losses after a car accident. It does this in two ways:
- Bodily insurance liability. This part of the insurance covers medical bills, lost income, and other expenses. If someone dies in an accident you caused, this insurance coverage will also help pay for a funeral.
As mentioned, the minimum required insurance for bodily injury liability is $25,000 per person and $50,000 per accident. - Property damage liability. Liability insurance also covers replacing or repairing the victim’s car. Other properties like walls or fences may also be damaged in some instances. The policy must pay for that as well. As explained above, the minimum property damage coverage is $25,000.
Remember that while these minimums will keep lawmakers happy, they will not likely cover all the damages after a serious accident.
Why are minimum liability limits not enough?
In most cases, the minimum liability limits will be depleted fast. For instance, a car accident that results in severe injuries can lead to a stack of medical bills. There are a lot of aspects to consider here.
The victim will likely have to go to an emergency room. If their injuries are severe enough, they will need surgery and a stay in the ICU. It is also very likely that they will need ongoing care and physical therapy.
If you caused the accident, your bodily injury liability coverage will pay for these expenses, but only up to the policy limits.
So, if your coverage is $25,000 and $50,000, respectively, and you have to pay for multiple peoples’ injuries, it will simply not be enough.
Even if the policy pays for just one victim, the cost of medical treatment is guaranteed to exceed these limits if serious injuries occur. This is because the victim will need long-term treatment or possibly suffer a permanent disability.
If this happens, it is also possible that the victim will pursue a personal injury lawsuit against you in addition to claiming from your insurance.
Moreover, property damage can be as expensive as medical treatment. If you cause an accident that damages another car or property, your property damage liability coverage must cover the costs. But, if the damage exceeds your $25,000 limit, the victim can file a lawsuit against you to recover the rest of the costs.
What happens when you don’t have enough liability insurance?
You must pay out of pocket if you get sued for outstanding expenses. You will also have to pay for legal fees. If you cannot, you risk having your assets seized. In Georgia, you may have a judgment awarded against you by a court.
This means your wages may be garnished, or you may get a lien against your property. These are just two important reasons to increase your liability insurance coverage.
Optional coverage to consider
If you only have the minimum liability coverage, you can consider uninsured/underinsured motorist coverage. This will help pay for extra expenses if you cause a serious accident.
UM and UIM are not required by law in Georgia, but it comes highly recommended. It is one of the best ways to protect your financial stability.
Collision coverage
If you cause an accident, you will also sustain damage to your own car. Collision coverage can help pay for this, which is important if you have a valuable or new car.
Comprehensive coverage
While you prepare for things like accidents, you must also prepare for damage not caused by accidents. Several other things can happen to your car, including theft, vandalism, fire, and storms. Comprehensive insurance will help you cover the damage without losing too much out-of-pocket.
How much liability insurance do you need?
The amount of liability insurance you settle on depends on several factors. If you have an expensive car and many assets, you need higher liability insurance to protect them.
If you drive long distances every day or in areas with a lot of traffic, you should also consider higher liability insurance limits.
You can opt for $100,000 in bodily injury liability, $300,000 per accident, and $50,000 for property damage. You can amend these limits over time if you need to.
By ensuring you have enough liability insurance, you protect your financial future. Should the worst happen and you cause an accident, always consult and hire a lawyer to assist you.
