In Georgia, drivers are legally required to carry minimum auto liability insurance coverage of 25/50/25, which translates to $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage. While these minimums meet legal requirements, they often fall short in adequately protecting drivers from the financial repercussions of a traffic accident.
The Limitations of Minimum Coverage
The costs associated with car accidents can quickly surpass Georgia’s minimum liability limits. For instance, the average price of a new vehicle is around $48,000. Therefore, for example’s sake, if we are using the average new vehicle value to provide an illustration, you could be left responsible for the remaining $23,000 not covered by your insurance.
Medical expenses can be even more daunting; a single hospital stay can cost thousands of dollars per day, not including surgeries, medications, or rehabilitation. In accidents involving multiple victims, the $50,000 per accident limit for bodily injury can be exhausted rapidly, leaving you personally liable for additional costs.
Financial and Legal Consequences
When damages exceed your insurance coverage, you become personally responsible for the remaining expenses. In Georgia, accident victims have the right to sue for damages beyond what your insurance covers. This can lead to financial strain, including wage garnishment, liens on your property, and asset seizure. Additionally, to the surprise of many, failing to pay these damages can result in the suspension of your driver’s license.
The Advantages of Higher Liability Coverage
Opting for higher liability limits provides a more substantial financial safety net. Increasing your coverage to $100,000 per person and $300,000 per accident for bodily injury, along with $100,000 for property damage, offers enhanced protection. The cost of these higher limits is often just a few extra dollars per month, making it a cost-effective way to safeguard your financial future. You can part with that latte from your favorite coffee shop for a few days to make up the difference, right?
Umbrella Insurance: An Added Layer of Protection
For those seeking even more comprehensive coverage, umbrella insurance policies provide additional liability protection beyond standard auto and home insurance policies. This type of insurance is becoming increasingly important due to rising costs associated with accidents and legal settlements. We will dive into these a little later on in this educational series.
Conclusion
While meeting Georgia’s minimum auto liability insurance requirements keeps you compliant with the law, it may not offer sufficient protection in the event of an accident. By increasing your liability coverage limits, you can protect yourself from significant financial and legal consequences. Consult with your insurance agent today to assess your current coverage and consider adjusting your policy to better safeguard your financial well-being.
Drive safe and stay protected!
Authored by: Brandon A. Carlson, CWCA
