Georgia is a “fault” state when it comes to car accidents. Under this system, a driver who is at fault for a wreck must pay compensation to those injured. Victims usually suffer two types of damage—bodily injuries and property damage.
Unsurprisingly, Georgia requires that motorists carry a minimum amount of liability insurance. As the name implies, this insurance will kick in when someone covered under the policy causes an accident. So if Driver A strikes Driver B, then Driver B will make a claim on A’s liability insurance policy to pay compensation.
Like other states, Georgia sets minimums that those registering a vehicle must have to comply with the law:
- For bodily injury liability, the minimum is $25,000 per person injured up to $50,000 per accident (when 2 or more people suffer bodily injuries). Bodily injury liability pays for medical care, replaces lost wages, and compensates for pain and suffering.
- For property damage, a driver must carry at least $25,000 in insurance. This will pay to repair or replace the victim’s damaged property, such as their car.
Combined, this is called 25/50/25 coverage, as it’s known in the insurance industry.
Because these are minimums, a driver could carry more coverage. For example, you might carry $100,000 in bodily injury liability coverage, up to $300,000 per accident. Of course, you will pay more in monthly premiums for more coverage. But if you are at fault for an accident, the victim could sue you personally and, if he wins, try to put a lien on your home or levy a bank account. The cost of medical care continues to skyrocket, so realize that $25,000 might not cover much.