The average American household doesn’t have that much in savings. If one of the wage-earning family members suddenly loses their income because of a car crash injury, there may only be enough money in savings to cover your mortgage for one or two months.
You will be reliant on auto insurance coverage to help your family cover your cost of living expenses and handle the practical consequences of a car crash. While you may have good coverage on your vehicle, the Georgia motor vehicle insurance system focuses on liability. Your coverage won’t necessarily protect you when another driver is at fault for the crash. Instead, you will depend on what insurance the other driver carries.
How much will the other driver’s policy pay for after a crash in Georgia?
Every driver in Georgia needs two primary forms of liability coverage. They need property damage liability coverage to help repair vehicles and other property damaged in the crash. They also have to carry bodily injury liability coverage that pays for people’s injuries and secondary expenses related to injuries, such as lost income while someone is in the hospital.
A driver can legally operate a vehicle in Georgia with just $25,000 in property damage coverage and another $25,000 in bodily injury liability coverage. That amount of bodily liability coverage does double if two or more people get hurt in one wreck. However, many people will find that a basic policy without supplemental coverage amounts will be far less than the total expenses they suffered because of a car crash.
Serious injuries or substantial damage to a vehicle could push the costs of the wreck well above the $25,000 threshold, and the insurance company may try to offer even less than that when negotiating a settlement.
What about your own policy? Perhaps you have one paid for extensive coverage on your own policy. You may have collision coverage that protects you or underinsured motorist protection. You can make a claim against either of these kinds of coverage after a crash. Sadly, your liability coverage will have no impact after a crash caused by another driver. Understanding the way car insurance works in Georgia can help those injured in a crash make good decisions about their finances.