The state of Georgia has minimum auto insurance requirements for everybody that operates a vehicle, but these requirements may not be enough coverage for you. It is important for you to understand what these requirements are, and why you may need more coverage.
The minimum requirements are aimed at protecting another driver and his or her passengers in the case that you get into an accident that is your fault. The coverage for bodily injury is $25,000 per person and $50,000 for multiple people. The minimum coverage for property damage is $25,000. Although this is all you need to comply with the law, you need to give consideration to other insurance needs you may have.
Increasing the amount for bodily injury coverage
If you have little net worth, the minimum requirements may be fine, but if you have significant assets, you may want to consider increasing the amount of coverage for bodily injury. If you get into an accident, people will often sue for as much money as they can get, and if you are a homeowner, this is a significant asset that may be targeted by an attorney. Make sure that you have enough bodily injury insurance to protect your wealth.
Collision and comprehensive insurance
This type of insurance will cover your car if the accident is your fault. If you have a car loan you are paying, the lender will require you to have this coverage. If you own your car, this type of insurance is optional. However, there are aspects of collision and comprehensive insurance that you may want to consider getting.
You may be thinking that it may be a good idea not to have collision and comprehensive, because you are a good driver and are unlikely to be at fault in an accident. If someone hits you, the other driver’s insurance policy will cover the damage, but this assumes all drivers have insurance. Many drive without insurance, and you need to have coverage if one of these drivers hits your car. Uninsured motorist is an important part of an auto insurance policy.
There are other areas of car insurance you may want to consider, and you can discuss all of your needs with an insurance agent. There are many companies that offer a full range of car insurance coverage.
Are you covered properly?