The state law regulating auto insurance in Georgia stipulates that every person driving a vehicle in the state should purchase liability auto insurance. The law had set the minimum policy limit for bodily injury at $25,000 per injured person and a total minimum of $50,000 for each accident. The minimum limit for property damage is $25,000. This coverage is referred to as 25/50/25.
The insurance system followed in Georgia is tort system. Under this system, the person at fault in an accident would have to bear all the claims of bodily injury and property damage, along with the insurance company of that person. As such, mere liability coverage up to the statutory limits would not be enough to cover any eventuality. Additional coverages might be needed to protect you against all the risks that could arise out of an accident. You should be aware of the implications of the other types of auto insurance coverages, so that you are adequately protected.
Sometimes unexpected incidents like theft of the vehicle, damage of the car in fire, flooding, collision with a stray animal, etc. could happen and result in a financial loss. Such incidents are termed as ‘Acts of God’ in insurance parlance. When such an incident occurs, you would be able to claim the repair cost or even replacement cost of the vehicle from the insurance company, subject to the maximum limit of the auto insurance policy. Even though it is not mandatory in Georgia, you should definitely opt for this coverage as an additional protection.
At times, you might be at fault in an accident unintentionally. In such circumstances, the collision coverage would protect you and help you claim the repair costs of the vehicle. If the vehicle is declared as totaled by the insurance company, you would be able to obtain the replacement value of the vehicle. This collision coverage is particularly useful for new cars. Further, if you plan to finance the purchase of your car, the lender would normally insist on comprehensive and collision coverages along with the liability coverage.
It is possible that several people get injured in an accident. The medical expenses of all of them would be quite high. Further, immediate funds to meet the medical bills should be available. This medical coverage helps you in obtaining instant assistance in meeting the medical expenses of all the persons injured in the accident. Moreover, you would also be able to claim the wages lost by you till you recover and return to work.
Other useful coverages that could be added on to your coverage to protect you against all the risks that could arise out of an accident are underinsured/uninsured motorist bodily injury coverages and personal injury protection or PIP. If the other motorist involved in the accident is uninsured or underinsured, the first type of coverage would help you. You should be able to judge which coverages would be necessary and which ones could be omitted.