Auto Insurance

Auto Insurance Coverage

If you're shopping for auto insurance, it helps to understand the typical types of coverage available on your auto policy. There are several types of coverages available to help protect you, your passengers and your vehicle if you're involved in an auto accident.

Common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional. Understanding what's required in your state and what each helps cover can help you choose the right coverage for your situation.

In Georgia, the state minimum requirements are 25/50/25, or $25,000 for one person's injuries, $50,000 for all persons injured, and $25,000 for all property damage. These limits apply to a single accident, with the full limit being to each accident.

Liability Coverage

Liability coverage is mandatory in most states. Drivers are legally required to purchase at least the minimum amount of liability coverage set by state law. Liability coverage has two components:

Bodily injury liability may help pay for costs related to another person's injuries if you cause an accident.

Property damage liability may help pay for damage you cause to another person's property while driving.

Uninsured Motorist & Underinsured Motorist Coverage

If you are hit by someone who doesn't have insurance, uninsured mototrist coverage can help pay for your medical bills or repairs to your vehicle, depending on State law.

If you're hit by an underinsured driver, which means they have car insurance but their liability limits aren't enough to cover your medical bills. That's when underinsured motorist coverage may help.

Comprehensive Coverage

Comprehensive may help cover damage to your car from things like theft, fire, hail or vandalism. If your car is damaged by a covered peril, comprehensive coverage may help pay to repair or replace your vehicle (up to the vehicle's actual cash value). This coverage has a deductible, which is the amount you'll pay out of pocket before your insurer reimburses you for a covered claim.

Comprehensive is usually an optional coverage - but some lenders may require it if you are leasing or financing your vehicle.

Collision Coverage

If you're involved in an accident with another vehicle, or if you hit an object such as a fence, collision coverage may help pay to repair or replace your car (up to its actual cash value and minus your deductible). It is usually optional, although, it may be required by your vehicle's leaseholder or lender.

Medical Payments Coverage

Medical payments coverage, is also known as MedPay, is a type of motor vehicle insurance available in Georgia. MedPay works similarly to health insurance but only applies after a car accident. Georgia law does not require you to purchase this optional coverage as part of your automobile insurance policy. If you get hurt in a car accident, however, you could find this coverage to be immensely valuable.

MedPay coverage can be useful in situations like these:

The person who caused the crash was uninsured (in other words, did not carry valid or current automobile liability insurance that would have paid for your medical expenses).

The insurance company of the at-fault driver is disputing the driver’s liability or for some other reason is not paying your medical expenses promptly.

Your health insurance agrees to pay some of your medical expenses from the wreck, and the MedPay coverage can help with the co-pays, coinsurance, and deductible. If you were at fault in the accident, MedPay coverage can help to pay your medical bills, since MedPay usually provides coverage regardless of fault.

Personal Injury Protection

Georgia does not use personal injury protection (PIP) as a form of car insurance, but it does allow the sale of medical payment insurance, also known as MedPay, which serves the same purpose. PIP is used primarily in states that use the no-fault system of accident resolution, while medical payment coverage provides you with the necessary medical attention without limiting your ability to sue for damages the way no-fault insurance does.

Other Types of Auto Insurance

You may be able to add the following optional coverages to your car insurance policy, depending on your situation. As our client, we can help you understand what each helps cover, so you can put together a policy that's right for you.

Rental reimburement coverage.

Gap Coverage

New car replacement coverage.

Roadside Assistance and towing service.

Classic car insurance.

Different components of an auto insurance policy are designed to help protect you and your vehicle. If you need help understanding which coverages are required and optional? Call us today to speak with our independent agent.