When it comes to car insurance in Georgia, many drivers opt for the state’s minimum car insurance requirements thinking it will be sufficient. But is it really enough when the unexpected happens? For most drivers, the answer is often no. Relying solely on the insurance policy limits required by the state could leave you financially exposed and legally vulnerable.
In this blog, we’ll explore what Georgia law requires in terms of auto insurance, the risks of depending only on it, and what drivers should consider to better protect themselves, their passengers, and others on the road.
What Is the Minimum Auto Insurance Coverage in Georgia?
Georgia law requires drivers to carry the following minimum amounts of auto liability insurance:
- $25,000 for bodily injury liability per person
- $50,000 for bodily injury liability per accident
- $25,000 for property damage liability
This is often referred to as 25/50/25 coverage. This basic insurance policy is limited to liability coverage, which means it only pays for damages or injuries you cause to others. It does not include collision coverage, comprehensive coverage, or any coverage for your own medical expenses or property damage.
Why Do People Choose Minimum Coverage?
The main reason is lower insurance premiums. Auto insurance policies with minimum requirements are cheaper. However, they come with major downsides like:
- Limited liability insurance
- No medical payments coverage
- Gaps in underinsured motorist coverage
- No support for collision insurance or physical damage insurance
What Happens After a Serious Car Accident?
Let’s say you’re involved in a car accident and are found at fault. If the other driver’s medical bills are $100,000, your insurance provider will only cover up to $50,000 per accident, leaving you responsible for the rest. Similarly, if you hit a luxury car and cause $60,000 in property damage, your property damage liability limit of $25,000 won’t be enough.
This shortfall may lead to:
- Personal lawsuits
- Seizure of personal assets
- Long-term debt
- Higher insurance rates
- Financial ruin
The Hidden Costs of Insufficient Coverage
Opting for only liability insurance coverage can leave you exposed to:
- Out-of-pocket medical expenses and property damage
- Uninsured Motorist Claim risk
- Legal action to recover damages
- Incomplete insurance coverage limits
Common Misconceptions About Minimum Coverage
- “It covers me completely.”
No, minimum car insurance doesn’t cover your medical care or vehicle repair. - “I won’t get sued.”
If your insurance policy can’t pay for the damages, a lawsuit is likely. - “Everyone carries full coverage.”
Many drivers lack uninsured motorist insurance or underinsured motorist coverage.
Better Coverage Options to Consider
1. Uninsured/Underinsured Motorist
Also known as UM insurance, it protects you if the at-fault driver has insufficient auto insurance. Uninsured Motorist Bodily Injury Liability Insurance can help cover your medical bills, even in a hit-and-run accident.
2. Medical Payments Coverage
This helps pay medical expenses for you and passengers regardless of fault. Unlike personal injury protection, this is optional in Georgia.
3. Collision Coverage and Comprehensive Coverage
Covers damage to your car from accidents, theft, or natural disasters. These are essential for full protection.
4. Umbrella Policy
This adds extra protection above your current policy limits, helping shield your personal assets.
Real-Life Examples: When Minimum Coverage Falls Short
Case 1: Atlanta Car Accident Attorneys See Lawsuit Surge
A driver with only bodily injury liability insurance caused a multi-car pileup. Total property damage exceeded $90,000 and medical treatment bills soared past $200,000. The insurance company only paid a portion, and the rest was pursued via lawsuit.
Case 2: Pedestrian Accident Victim Files Lawsuit
A pedestrian suffered severe injuries and required over $100,000 in medical care. The at-fault driver’s insurance policy only covered $25,000. The rest was paid via a lawsuit and garnishment of the driver’s personal assets.
Legal Risks of Inadequate Auto Insurance Policy
Insufficient auto insurance policy limits can lead to:
- Seizure of personal property
- Damaged credit
- Court judgments
- Struggles with insurance carrier when seeking fair compensation
- Delays in helping accident victims
How Insurance Companies Handle Minimum Policies
An insurance company is only obligated to pay up to the liability limits of your insurance policy. Once that’s exhausted, they are no longer responsible for assisting you in the case. You’ll face the remaining consequences directly, especially if the accident involves personal injury, extensive property damage, or major medical bills.
The Risk from Other Underinsured Drivers
If the at-fault driver has limited auto insurance, you may need to rely on:
- Your uninsured motorist coverage
- A personal lawsuit
- Help from a Georgia car accident lawyer
- Your medical payments or comprehensive insurance
Evaluating the Right Coverage for You
Ask yourself:
- Can I protect my personal assets in a lawsuit?
- Do I need more than basic liability auto insurance?
- Can I cover large medical expenses out-of-pocket?
- What are my current insurance coverage limits?
- Does my automobile insurance policy include Uninsured/underinsured motorist protection?
Georgia Insurance Law May Change
Rising medical expenses, property damage costs, and court-awarded settlements mean Georgia may soon raise the minimum car insurance requirements. Keep an eye on updates from the Georgia Insurance and Safety Fire Commissioner’s Office or the Office of the Commissioner of Insurance and Safety Fire for changes.
Final Thoughts
Meeting Georgia law doesn’t always mean meeting real-world needs. Minimum car insurance may keep you legal but won’t shield you from the high cost of bodily injury claims, property damage liability insurance, or mounting medical bills. Investing in a broader insurance policy with higher liability limits, medical payments coverage, and UM/UIM coverage can prevent significant financial loss and stress.
About Ted Law Firm
Ted Law Firm serves clients across Georgia with dedication and results. Whether you’re facing a complex insurance policy dispute or dealing with an underinsured motorist, we’re ready to help. Our attorneys are committed to protecting your rights and ensuring you’re treated fairly by the insurance company.We proudly serve injury victims in Aiken, Anderson, Charleston, Columbia, Greenville, Myrtle Beach, North Augusta and Orangeburg. If you’ve been injured due to someone else’s reckless or criminal behavior, our experienced attorneys are here to help you seek justice and recover the compensation you deserve. Contact us today for a free consultation.
Attorney Ted Sink, founder of The Ted Law Firm, is a Yale, Stanford Business School, and Charleston School of Law graduate and former marketing executive who built a 7-figure law practice, earning millions for his clients. With experience in both law and advertising, Ted has been recognized in Forbes, Entrepreneur, and the ABA Journal. He speaks at industry conferences on marketing and law firm management, sharing insights from his unique background to help other firms grow. When not working, Ted enjoys traveling, diving, and dog-sitting golden retrievers.
