Among the basics of car insurance are the state laws regarding coverage for drivers. Each state is different, but all require some amount of coverage for drivers to operate legally on the road.
There are three main types of car insurance coverage required by states:
Bodily Injury Liability
Bodily injury liability is coverage that steps in if the insured driver causes bodily harm to someone else while operating the vehicle. It can help pay for the victim's medical bills as well as compensate for legal expenses, should the victim decide to sue. States require this insurance to guarantee that drivers who cause injury have a way to compensate those they injure. In Georgia, drivers must carry at least $25,000 in bodily injury liability per person and $50,000 in bodily injury liability per accident.
Property Damage Liability
The other half of liability car insurance is property damage liability. This coverage steps in if the insured driver damages or destroys someone else's property while operating the vehicle. It can also help with legal fees, should the victim decide to sue. In Georgia, drivers must carry at least $25,000 in this liability coverage.
Uninsured/Underinsured Motorist Coverage
This coverage can often be waived by written permission in most states, but it's an important coverage nonetheless. Uninsured and underinsured motorist coverage steps in if you have a wreck with a driver who is either not carrying enough insurance or doesn’t carry any. This insurance is not required in Georgia.
Why Is Car Insurance Required?
Car insurance is required because it guarantees victims of bodily injury or property damage to receive compensation. This is because most states, including Georgia, are at-fault states when it comes to auto insurance. At-fault means that the driver who is declared at-fault for the accident is responsible for covering the damages. Car accidents can be expensive, especially when medical bills are involved, and not everyone can afford those costs out of pocket. States require liability insurance for drivers in case they cause a wreck.
This is also why some states require uninsured/underinsured motorist coverage. If another driver causes an accident but doesn't have insurance to cover the damages, uninsured or underinsured motorist coverage helps compensate for the damages instead. Liability insurance will not cover damages to the at-fault driver's vehicle or their or their passenger's medical expenses after an accident.
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