When car accidents happen, they can lead to costly property damage and personal injury. As a result of this, drivers are required to maintain a certain level of insurance. This insurance is important for individuals whether they are the cause or the victim of a car accident.
Fault-based State
The minimum insurance coverage required to be carried by drivers is:
- $25,000 for the injury or death of a person (you, a passenger, another driver, etc.);
- $50,000 for the injury or death of more than one person involved in a single accident; and
- $25,000 for damage to property.
While the above describes the minimum amounts of insurance coverage required of Georgia drivers, it is often advisable to carry more than those amounts. This is because an individual may be forced to pay the difference between the damage award and the amount of insurance coverage out-of-pocket in the event the award exceeds the coverage amount.
Georgia is considered a fault-based state when it comes to car accidents. This means that the driver considered to be responsible for causing the accident is liable for injuries and property damage suffered by the other driver. The insurance company of the at-fault person is responsible for investigating and covering payment. However, the insurance company often delays making payments, and this causes financial problems for the injured person. That is why retaining an experienced personal injury attorney is important. Depending on the type of damages (property damage, personal injury losses such as lost income, medical bills, etc) an experienced auto accident attorney can help you through that process. For instance, at Wade Law Offices we will help you pursue recovery through the following paths:
- His or her own insurance company for the property damage (the company will then attempt to recover from the at-fault driver’s insurance company);
- The other driver’s insurance company (often called a third-party claim); or
- A personal injury lawsuit filed in civil court.
It is important to be aware of the statute of limitations in relation to a personal injury or property claim. This is the amount of time an individual has to make a claim based on the events that caused the injury or damage. Pursuant to Georgia law, an individual has two years from the date of the accident to file a personal injury claim and four years to file a property claim.
Uninsured Motorist Coverage
Georgia does not require motorists to purchase uninsured (or underinsured) motorist coverage (UIM), which is supplemental coverage of a driver’s own policy that provides protection in the event that an at-fault driver in an accident either does not have coverage or does not have enough coverage to satisfy the damage award. However, while Georgia does not require this coverage to be carried, it is important to understand the two different types of UIM.
To explain the difference, imagine you were involved in an accident that was caused by the other driver. If you have reduction (also known as non-stacking or set-off) coverage, your policy will only pay the difference between the at-fault driver’s coverage and the amount of your coverage. For example, if the at-fault driver has $50,000 in coverage, you have $100,000 in coverage, and the damage award is $175,000, your insurance will only pay $50,000 (the difference between the two policies up to your policy coverage).
Alternatively, excess UIM (also called add on UM) allows for the stacking of your policy on top of the at-fault driver’s policy. In the above example, you will be able to collect $50,000 from the at-fault driver’s policy and $100,000 from your own policy. In Georgia, most people by default carry the same amount of UM insurance as they have in liability coverage.
Since the minimum amount of liability coverage is $25,000.00 in liability coverage, most people have $25,000.00 in UM coverage. This is a mistake. You should purchase as much excess or add on UM coverage as you can afford. It is inexpensive and will protect you if you have significant injuries and the other person only has the minimum liability coverage or has even let their coverage lapse or expire.
Car Accident Attorneys
If you have been involved in a car accident, it is important to contact an experienced Georgia attorney as soon as possible. Call us at Wade Law Offices today. We look forward to hearing from you and discussing how we can help.
