Media post: Minimum Vs. Full Coverage: What Type of Car Insurance Do You Really Need in Georgia?

When driving in Georgia, having car insurance isn’t just a good idea—it’s the law. You must carry liability insurance coverage in Georgia to operate a vehicle legally. But is the minimum coverage enough, or should you invest in full coverage? Let’s break it down so you can make the best choice for your situation.

What Is Minimum Liability Insurance in Georgia?

Georgia is a “fault” state, meaning a driver who causes an accident must compensate those who were injured. Accident victims usually incur two types of damages: bodily injuries and property damage.

As such, Georgia law requires all car owners to carry a minimum limit of liability insurance for bodily injury and property damage. The law requires that you carry:

– $25,000 worth of coverage to cover each person: This is the highest amount your insurance company will cover for another person’s injuries if you are responsible for an accident.

– $50,000 worth of coverage to cover each accident: This is the maximum amount your insurance company will pay for injuries if more than one person is injured in an accident you cause.

– $25,000 per accident for property damage: This is the highest amount your insurance company will pay to repair or replace another person’s vehicle or property if you are responsible for the damage.

That said, minimum coverage only pays for damages you cause to others; it does not cover your own vehicle or medical expenses. You will have to pay for your own car repair and medical bills if you ever get into an accident.

What Is Full Coverage Insurance in Georgia?

Carrying minimum insurance in Georgia makes you legal, but it doesn’t fully protect you in an accident. That’s why it’s a good idea to have full coverage.

Full coverage insurance isn’t a single policy but a combination of coverages that help protect your vehicle in an accident. While the definition of full coverage can vary, it typically includes the following:

– Collision coverage: This coverage pays for repairs to your car if you’re in an accident, no matter who caused it. It typically covers crashes with other cars and accidents involving objects like trees or guardrails.

– Comprehensive coverage: Comprehensive insurance protects your car from damage not caused by accidents. It covers theft, vandalism, natural disasters, falling objects, and animal collisions. For instance, if a storm damages your car or it gets stolen, this coverage helps pay for repairs or replacement.

– Liability insurance: This coverage is mandatory in Georgia. It covers the cost of injuries or property damage you cause to others in an accident up to the policy’s limits. Therefore, it’s good to add more than the minimum required amount of liability insurance to protect yourself adequately in case of an accident.

– Underinsured/Uninsured motorist coverage. This type of insurance covers you when someone hits you, and they have no auto insurance. On the other hand, underinsured motorist coverage covers you when you are hit by a driver who does not have enough insurance to compensate for the damage or injury they caused. 

It’s highly recommended that you get both coverages. In the event of a hit-and-run accident, you can report the incident to your uninsured motorist coverage.

– Guaranteed asset protection (GAP) coverage: This policy may help replace your vehicle if it’s totaled after an accident.

When Full Coverage Auto Insurance Makes Sense

Full auto coverage is recommended for every driver, but it’s necessary, especially if:

– You own a car, and you have a loan on it: Some lenders require you to have both collision and comprehensive coverage to protect their investment.

– You lease a car: Leasing companies also require you to have full coverage. Since the leasing company technically owns the vehicle, they want to ensure full protection in case of damage or loss.

– Your car is new or expensive: If your vehicle is worth a lot, repairing or replacing it can be costly. Full coverage helps cover these expenses, so you’re not stuck paying out of pocket.

– You live in an area with high risks: If you live in a place with high accident rates, severe weather, or a high risk of theft, comprehensive and collision coverage can provide peace of mind.

– You can’t afford major repairs or replacement: If you don’t have enough savings to pay for car repairs or a new vehicle after an accident, full coverage ensures you won’t be financially stranded.

How Much Does Full Coverage Cost in Georgia?

There is no one size fits all solution when it comes to full coverage or any insurance policy. The amount you’ll pay depends on several factors, including:

– Location: Living in an urban area like Atlanta can raise your insurance rates. That’s because city drivers are exposed to more risks of accidents, theft, and vandalism and, therefore, pay more than their rural counterparts.

– Age: Drivers under 25 years of age are likely to incur higher rates because they’re less experienced. On the other hand, older drivers may enjoy lower rates because they are more experienced and are, therefore, less likely to cause accidents.

– Driving record: Insurance policies for drivers with clean records (without accidents, traffic violations, or DUIs) can be relatively cheaper than those with records.

– Credit score: Insurers use credit scores to set insurance rates. If you have good credit scores, you’re likely to pay low premiums and vice versa.

– Vehicle type: Car features, including the make and model and the market value of the car, are vital in determining insurance costs. For instance, luxury cars are more expensive to insure than normal cars.

– Safety features and ratings: It is possible to get lower insurance rates for vehicles that are equipped with features that improve safety or have a high safety rating.

– Insurance history: Lack of coverage or a history of claims will affect future insurance rates negatively.

Choose Your Coverage Wisely to Protect Yourself and Your Finances

Car insurance is not only a legal formality—it is a safety net for your wallet. In Georgia, you are only required to carry liability insurance coverage. However, having full coverage can give better protection in the event of an accident. Take your time to consider what you need, shop around for the best policies, and select the coverage that suits you and your wallet.