Georgia Liability Insurance Coverage
This series of blogs will talk about the different kinds of car insurance coverage that you must/may have in Georgia. We’ll start with the only one absolutely required by law on any car that is required to be registered in this state – liability insurance.
We sometimes think of liability insurance as being there to pay someone who is hurt, but it is actually a contract between the insured and insurance company that promises to indemnify the insured. What that means in English is if you get sued and lose; and you pay the judgment against you, your liability insurer must indemnify or reimburse you. So technically, before your liability insurance has to pay, you have to be sued, lose and pay.
As a practical matter that’s not how liability insurance usually works today. In addition to contracting to indemnify you, your insurance policy almost certainly contains provisions that allow it to adjust and settle any claim made against you. This is why insurance companies have claims departments and don’t just write checks to reimburse their insureds. Your policy probably also requires you to cooperate with the insurer in its handling of the claim. If you do not, you may lose your coverage. The insurer controls whether to settle a case or force the other party to file suit. And if they force the other party to file suit, the insurer hires and pays for your lawyer.
Your liability insurance has a limit of coverage. This is shown on your declarations page, which looks some thing like this:
In this example the limits are what we call “split limits”. There is a limit of $100,000.00 the insurer will pay on your behalf to any one person injured by your negligence. There is a limit of $300,000.00 the insurer will pay on your behalf to all people injured by your negligence in any one accident (that’s no matter if it’s 3 or 100 people). There is a limit of $50,000.00 the insurer will pay on your behalf for all property damaged by your negligence in one accident. You may see or hear this referred to as 100/300/50 limits. Liability limits can be also be “combined single limits” where there is one limit of say $100,000.00 to pay all people injured by and property damaged by your negligence in any one accident.
You need to look at your policy of insurance when it is mailed or emailed to you. Make sure the coverage is what you wanted. And make sure your limits are what you consider to be enough to protect you from personal liability due to your negligence.
In upcoming blogs I’ll talk about medpay and uninsured/underinsured coverage, which, while not absolutely mandatory like liability insurance, can be just as invaluable.
What if I have more questions about liability insurance coverage in Georgia?
Liability insurance is required on any car that is registered.
Your policy will contain provisions that allow it to adjust and settle claims made against you.
Be sure to review all information listed in the policy before approval. Protection is a must.
If you are interested in a free consultation, email us! Or call us at 770-728-6932