Most states have mandatory minimum coverage requirements for auto insurance. Georgia is one of them. Unlike the term full implies, it actually refers to the minimum liability coverage you're required to have on your vehicle if you live in Georgia. For most drivers, especially those with newer vehicles; full coverage may not be enough. You'll likely want more protection than what full coverage offers.
Georgia Limited Liability Requirements
Full coverage in Georgia requires the owner of the vehicle to purchase limited liability insurance. It's a basic insurance policy. It protects you in the event that you're in an accident that causes damage to another person's property or results in injury or death to another person(s). For this reason, it's sometime referred to as bodily injury liability. The coverage limits are as follows: $25,000 for property damage per accident; $25,000 for bodily injury per person; and $50,000 per accident for bodily injury of more than two people. Limited liability insurance with these coverage limits is the bare minimum coverage you're required to have for your auto insurance under Georgia state law, as of 2010.
These are optional, supplemental insurance policies that provide added physical damage protection. Collision coverage protects your vehicle from damage due to an accident with another car or object. Depending on the terms of the coverage you choose, it generally covers repair and replacement of your vehicle for its actual cash value. If you don't fully own your vehicle, your lender may require you to get collision coverage. Even when you own the vehicle and it's new, you may want to purchase collision coverage to provide you added damage protection.
Comprehensive coverage is another policy available that also protects your vehicle from damage. Unlike collision coverage, comprehensive coverage protects your vehicle from damage caused by a flood, fire or theft. Although comprehensive coverage isn't required by Georgia law, if you've financed your car; you may be required by your lender to obtain this coverage.
PIP, or personal injury protection, is an insurance policy designed to provide you added protection should you get hurt in an accident and require medical attention. PIP covers generally 80 percent of your medical and rehabilitation costs, funeral expenses and loss of wages. It's optional in Georgia, although a number of states mandate residents purchase it.
Uninsured Motorist Coverage
Uninsured motorist coverage protects you from paying for damages caused by another driver with only basic coverage or no coverage, which makes her unable to fully cover your costs. Policies include the cost of medical bills, lost wages and, in some instances, rental car reimbursement and property damage. Since full coverage in Georgia only pays up to $25,000 per person for injuries, uninsured motorist coverage would pay any remaining medical costs. For example, if your hospital bill was $30,000, uninsured motorist coverage would pay the additional $5,000, so you don't have to pay out of pocket.
- Photo Credit Jeep and car after the road accident. image by Dragan Trifunovic from Fotolia.com
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