Auto Insurance Limits In Georgia: Understanding The Basics

Georgia has specific requirements for auto insurance that all drivers must meet. The minimum coverage requirements are intended to provide a basic level of protection for those involved in a car accident. Liability insurance is a requirement, covering bodily injury per person, bodily injury per accident, and property damage per accident.

Bodily injury liability insurance

In Georgia, drivers are legally required to have a minimum level of auto insurance, including liability insurance. This insurance covers the cost of any damage or harm caused by the policyholder in a vehicle accident.

While the minimum legal level of coverage in Georgia is $25,000 per person and $50,000 per incident, higher levels of coverage are available and it is recommended that drivers purchase more coverage if they can afford it. This will provide greater financial protection in the event of a serious accident.

Property damage liability insurance

In Georgia, drivers are legally required to have a minimum of $25,000 in property damage liability insurance. This is a type of auto insurance that covers damage to another person's property in the event of an accident where the policyholder is at fault. This includes damage to another vehicle, as well as property not related to a car, such as buildings or mailboxes. It also covers rental costs for renting a car while the damaged vehicle is being repaired and property damage to items inside the vehicle.

It is important to note that property damage liability insurance does not cover damage to the at-fault driver's car. For that, one would need physical damage insurance, which is not mandatory in Georgia but may be required by a lender or leasing company. Physical damage insurance includes collision coverage and comprehensive coverage, which covers damage to the policyholder's vehicle in the event of a collision or other incidents such as theft, vandalism, or fire.

While the minimum coverage limit for property damage liability insurance in Georgia is $25,000, higher limits are available and vary by insurer. It is recommended to consider optional coverages that will protect the policyholder in case of injuries and damage to their own property.

Uninsured motorist bodily injury insurance

In Georgia, uninsured motorist coverage is optional. However, it is highly recommended for all drivers, as it provides financial protection in the event of an accident with an uninsured or underinsured driver. Without this coverage, you could be responsible for paying medical bills and vehicle repair costs out of pocket.

When purchasing UMBI coverage, you can choose the insurance limits that match your liability coverage amounts. For example, if your liability limits are $100,000 for injury to one person and $300,000 for injuries in one accident, you would buy the same limits for your UMBI coverage. This ensures that you have adequate protection in the event of a claim.

It's important to note that UMBI coverage is separate from uninsured motorist property damage coverage (UMPD), which covers damages to your vehicle in an accident with an uninsured or underinsured driver. While UMBI covers medical expenses for you and your passengers, UMPD covers the cost of repairing or replacing your vehicle. Both types of coverage are important to consider when purchasing car insurance, especially in states like Georgia, where a significant number of drivers may be uninsured or underinsured.

Uninsured motorist property damage insurance

In Georgia, drivers are legally required to carry a minimum amount of auto insurance to ensure they can be held financially responsible for any damage or harm they cause on the road. The minimum limits of liability insurance required under Georgia law are:

• Bodily Injury Liability – $25,000 per person and $50,000 per incident
• Property Damage Liability – $25,000 per incident

While liability insurance is mandatory, physical damage insurance is not required by Georgia state law. Physical damage insurance helps pay for loss or damage to your own vehicle and includes two types of coverage: collision and comprehensive. Collision coverage pertains to losses associated with vehicle collisions, while comprehensive coverage includes theft, vandalism, and fire-related losses.

Although not mandatory, uninsured motorist insurance is also an important type of coverage to consider. Uninsured motorist bodily injury or property damage insurance protects you in the event of an accident caused by a driver without insurance or whose insurance limits are too low to cover the damage. This type of insurance can help cover repair costs for your car and other property, as well as extra costs if the at-fault driver doesn't have sufficient property damage liability insurance.

In Georgia, uninsured motorist coverage is optional, and the limits may never be higher than the bodily injury and property damage liability limits. The two options for uninsured motorist coverage in Georgia are:

• Reduced UM (Traditional UM): This option only covers the difference between the at-fault driver's bodily injury and property damage limits and your uninsured motorist limits. It results in lower premiums for uninsured motorist bodily injury and property damage coverage.
• Add-on UM (New UM): This option increases your coverage limits by allowing you to add the at-fault driver's bodily injury and property damage limits on top of your uninsured motorist limits. This choice is pricier than traditional UM, typically costing about 2% more.

While Georgia law sets the minimum requirements for auto insurance, it is important to consider your specific needs and circumstances when determining the appropriate level of coverage. Optional coverages, such as collision and comprehensive, can provide additional protection in the event of an accident.

Collision insurance

The cost of car repairs can be expensive, and collision insurance can help cover these costs, saving you from paying out of pocket. This type of insurance can also protect you in the event of a hit-and-run or if the at-fault driver is uninsured or underinsured. It's important to note that collision insurance has a deductible, which is the amount you must pay before the insurance coverage kicks in. The deductible amount can vary, typically ranging from $50 to $2,000, and will impact your premium.

While it may be tempting to only carry the minimum liability insurance required by law, adding collision insurance can provide valuable financial protection. This is especially true if you are unable to afford unexpected repair costs or if your vehicle is financed or leased. By having collision insurance, you can rest assured that you will be covered for repairs to your own vehicle, regardless of who is at fault in an accident.

To summarise, collision insurance is a valuable addition to your auto insurance policy in Georgia. It provides financial protection for repairs to your vehicle, even in accidents where you are at fault. While not mandatory under state law, it may be required by your lender or leasing company and can offer peace of mind in the event of an accident.

Frequently asked questions