Insurance Coverage Limits: What Do They Mean?

Atlanta personal injury attorneys always advise car accident victims to exchange insurance information with other drivers after a crash. That includes information about the insurance agency and policy number. There are many reasons why this is necessary. However, the primary one is simple — without insurance information, there’ll be no traffic crash claim.

Georgia is a comparative fault or negligence state. So, drivers bear liability for their degree of fault in an auto crash. That’s why the state makes it compulsory for every driver to own liability car insurance. That way, no at-fault driver can escape liability for their carelessness on the roads.

When it comes to auto insurance in Georgia, there are many things to know to avoid confusion while claiming damages. They include terms like adjuster, actual cash value, compulsory insurance, negligence, etc.

This article will focus on the meaning of insurance coverage limits in the state. We’ll also discuss optional insurance coverage and address situations where claims exceed policy limits.

What’s an Insurance Coverage Limit?

An insurance coverage limit is one of the simplest insurance terms to learn. It’s also one of the essential ones as it determines how much you can recover from an at-fault party’s insurance company.

Insurance coverage limits refer to the maximum amount of money you can recover from an insurance company per covered claim. It means that regardless of what you’re claiming, you can only get compensation up to a specific amount. You must also understand that each coverage has its limits, even when multiple coverages exist.

Many factors may influence insurance coverage limits. The major ones are the type of insurance and legal requirements. We’ll discuss them below.

Required Liability Insurance in Atlanta, Georgia

Like many other states, Georgia sets the minimum liability limits for car insurance. It’s as follows:

  • Bodily Injury Liability

Bodily injury liability covers the amount that an at-fault party will pay for your medical bills. It will also cover lost wages and your legal representation if you decide to sue for damages. In Georgia, the minimum bodily liability insurance is $25,000 per person and $50,000 per accident.

  • Property Damage Liability

Property damage liability covers the cost of replacing or repairing any property you damaged in the accident. It covers things like vehicle damage, broken fences or walls, etc. It’s $25,000 per incident. Many Georgians refer to the state’s mandatory liability limits for auto insurance as the 25/50/25.

Are There Any Optional Insurance Coverages?

Bodily injury and property damage liability benefits you when someone else causes your accident. However, sometimes, those mandatory insurance coverages may not adequately cater to your damages. In those cases, the following optional auto insurance policies can help:

  • Collision and Comprehensive Coverages

Collision coverage covers vehicle wrecks due to a collision with another car. It also covers car damage in a single-vehicle accident. On the other hand, comprehensive coverage (full coverage) covers any car damages that didn’t result from a collision. They include vandalism, animal damage, theft, weather-related damage, etc.

  • Uninsured/Underinsured Motorist Coverage

Even when Georgia’s laws make auto insurance compulsory, some drivers may violate the rule. Your uninsured motorist policy would cover your damages if such a motorist caused your accident. Meanwhile, underinsured motorist coverage will protect you if the at-fault drivers’ policy doesn’t cover your damages. This policy will cover the remainder of what the responsible party pays to adequately cover your losses.

What If My Claim Exceeds Policy Limits?

If you don’t have enough insurance to cover your losses in an accident, you have the following options:

  • In some cases, more than one party may be liable for your auto crash. You can sue all of them to recover your full compensation in such situations.
  • You can claim against a defendant’s multiple insurance companies
  • You may sue the driver of the vehicle that caused your injuries

Get Maximum Compensation for Your Accident Injuries Now!

If someone else caused your car accident in Georgia, it’s only fair that they pay for your injuries. That includes your medical bills, lost wages, and non-economic damages. In a lawsuit, they may pay punitive damages too.

Your compensation amounts, however, aren’t automatic or fixed. It significantly depends on the quality of the personal injury lawyer handling your case. There’s no use going through the stress of filing a claim only to get little compensation.

That’s why you must only accept legal representation from our attorneys at the Bethune Law Firm. Our Atlanta car accident lawyers will ensure that you get not a dime less than you deserve. Schedule a free consultation with us right away.

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