Minimum Coverage for Auto Insurance

Purchasing an auto insurance policy may seem complicated. You want to follow state and local laws without taking on more coverage than necessary for your car.

By understanding minimum coverage requirements, you can learn how to handle auto incidents.

Liability Protection

As a general rule, you want to buy an auto insurance policy with liability protection. Liability coverage ensures that you have the funds to pay for at-fault damages. It is particularly important when the accident stems from a mistake you made on the road. At-fault accidents hold you responsible for damage to another driver's vehicle or property.

Many policies cover property damages and personal injuries occurring in an accident. The minimum amount you need to buy depends on your local laws.

Uninsured Motorist Coverage

Uninsured motorist coverage can protect you when another driver damages your car, but does not have insurance. The coverage allows you to repair your vehicle and may cover a portion of your medical costs.

In many cases, you have a limitation on the coverage. It may only applies when the other driver did not have liability protection.

Variations Among States

Every state has different standards for car insurance. Usually, you must get liability coverage. However, the exact amount of coverage may vary between states.

Some states also require uninsured motorist coverage on your auto policy. Keep in mind that the standards for motorist protection depends on the state.

Liability protection covers a set amount of property damage and bodily injuries. Coverage for bodily injuries is usually broken down into a maximum per-person amount as well as a maximum amount for the accident. Uninsured motorist insurance is not required in every state, but it may be a standard in some states. Check your local laws to ensure that you follow the legal requirements of your state when buying auto insurance.

Georgia's minimum car insurance requirements are as follows:

• Bodily Injury Liability: $25,000 per person and $50,000 per accident.
• Property Damage Liability: $25,000 per person.
• Uninsured Motorist Bodily Injury*: $25,000 per person and $50,000 per accident.
• Uninsured Motorist Property Damage*: $25,000 with a $250, $500, or $1000 deductible

*Uninsured Motorist coverages can be rejected.

When you purchase a new vehicle, you must also follow state laws to insure your car. While the minimum requirements for car insurance depend on your state, you must obtain a policy to avoid complications and protect against accidents on the road.