State auto insurance requirements in GA mean that drivers must have third party liability protection in place to stay legal. This type of coverage is used to pay for claims made by the occupants of the other other vehicle following a car accident.
Bodily injury liability insurance pays for medical bills and lost wages, as well as rehabilitation expenses. This part of the policy also pays out a funeral benefit if the accident resulted in one or more fatalities. The minimum level of this type of protection required by law is $25,000 to pay for a single accident victim’s damages and $50,000 to compensate all people injured in the same accident.
Property damage liability coverage pays for the cost of repairs to the other driver’s vehicle or its cash value, if the accident is severe enough to total it. It also pays for the cost to repair or replace other objects damaged in the crash, such as mail boxes, guard rails and sign posts. A policy with at least $25,000 in coverage must be put in place to comply with state law.
Georgia is a tort state for car insurance purposes, which means that drivers are responsible for paying for the damages they cause in an accident. A consumer who chooses to limit his or her coverage to the minimum level of coverage required by law may not have enough protection to pay for damages caused if the accident is a serious one. Ideally, a driver should buy as much coverage as he or she can afford to avoid this situation.