Almost every state requires motorists to subscribe to some level of auto insurance. While some have straightforward requirements of minimum liability insurance amounts, others have more coverage requirements. For instance, some states require drivers to have personal injury protection (PIP) insurance.
If you have minimum liability insurance, you enjoy some financial protection when involved in a crash. However, it is advisable to buy a higher amount than the state-stipulated minimum threshold. “If you cause a mishap, the victim can sue you for damages that surpass your coverage limits. Having sufficient coverage will save you from the legal impasse,” says personal injury attorney Rustin Smith of Smith Hulsey Law.
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Typical Forms of State-Required Auto Insurance
Before shopping for the ideal auto insurance policy, it is crucial to understand the type of insurance required in Georgia. It will give you an insight into what to purchase. The following types of policies are typical for auto insurance coverage in the US:
Understanding Liability Auto Insurance: Essential Coverage for Protecting Yourself and Others on the Road
If you are responsible for an accident, you need liability auto insurance to pay for injury to others and property damage. The potential beneficiaries include motorists, passengers, and pedestrians. If the victim sues you, it is sufficient for your settlement and other legal and financial demands. The requirements for liability coverage entail a threshold amount of coverage for physical harm per head, physical harm per incident, and property damage. For example, if you want auto insurance in Georgia, you must shop for a policy that satisfies the state’s 25/50/25 most minor liability requirements. Your policy must include a minimum of $25,000 in physical harm liability coverage per head. $50,000 in physical harm liability per incident and $25,000 in property damage per incident.
Personal Injury Protection (PIP) Insurance: Comprehensive Coverage for You and Your Passengers After an Accident
PIP insurance covers injuries to policyholders and their passengers, regardless of the cause of the mishap. It covers medical expenses, lost wages, rehabilitation bills, funeral bills, and survivor benefits. It sometimes covers the cost of some daily services, such as child care. Some states mandate the PIP for drivers.
Uninsured Motorist (UM) Coverage
You need uninsured motorist coverage if you are involved in an accident and the at-fault party is uninsured. Some states also mandate drivers to buy underinsured motorists (UIM). The UIM covers you if the guilty motorist does not have sufficient coverage for your injuries and losses. The two parts of the UM/UIM are bodily injury and property damage. The policies for the former are uninsured motorist coverage for bodily injury (UMBI) and underinsured motorist coverage for bodily injury (UIMBI). The latter includes underinsured motorist coverage for property damage (UIMPD) and uninsured motorist coverage for property damage (UMPD). Some jurisdictions mandate the UMBI for motorists, while the UMPD is optional. However, others require both.
Medical Payment (MedPay) Insurance
This insurance covers accident-related medical expenses for motorists or their passengers, regardless of who is guilty of the crash. Also, it can cover your medical costs if you are a passenger or pedestrian in an accident. A few states mandate this insurance for their motorists.
More Auto Insurance Coverage Is Needed For Some Motorists
Although it is not state-mandated insurance, your car loan lender may request that you have comprehensive collision coverage. The collision coverage covers damages when you collide with a structure, such as a car, telephone pole, or guardrail. However, comprehensive coverage is responsible for damages through other incidents. Examples include natural disasters, rollovers, vandalism, theft, fires, and animal-orchestrated damage.
Conclusion
While each state has specific requirements for auto insurance coverage, the primary goal of these mandates is to ensure that drivers are financially protected in the event of an accident. Minimum liability coverage is often required, but it is advisable to consider higher coverage limits to protect yourself from potential legal and financial consequences if damages exceed your policy’s limits. Additional coverages, such as Personal Injury Protection (PIP), Uninsured Motorist (UM) insurance, and Medical Payment (MedPay) insurance, provide valuable financial protection for drivers, passengers, and others involved in a crash.
