Auto accidents happen on Georgia roads and can bring financial and emotional stress to those involved. Knowing the ins and outs of auto accident settlements and policy limits is key to navigating these situations. Georgia’s laws surrounding auto insurance and claims can be tricky so drivers need to be informed about their rights and responsibilities.
This article will look at how often auto accident settlements go over policy limits in Georgia.
Auto Insurance Policy Limits in Georgia
Policy limits are the maximum amount an insurance company will pay for a claim. These are set when you buy your policy and are broken down into categories such as bodily injury per person, bodily injury per accident and property damage per accident.
For example if your policy has a bodily injury limit of $25,000 per person and $50,000 per accident the insurer will not pay more than $25,000 for injuries to one person or more than $50,000 for all injuries in one accident.
Georgia Minimum Auto Insurance Requirements
In Georgia, you must carry minimum liability insurance to drive a vehicle. The state requires all drivers to have:
- Bodily Injury Liability: $25,000 per person and $50,000 per accident. This covers injuries you cause to others in an accident.
- Property Damage Liability: $25,000 per accident. This covers damage you cause to another person’s property, such as their vehicle or a fence.
These are the minimum requirements and while they offer some protection they may not be enough in a serious accident.
Uninsured Motorist Coverage
Georgia does not require uninsured motorist (UM) coverage but it’s highly recommended. UM coverage protects you if you’re involved in an accident with an uninsured driver or if you’re a victim of a hit and run. This coverage is key to making sure you’re not left with unpaid medical bills and repair costs if the at-fault driver can’t pay.
Why More Coverage Matters
While meeting the state’s minimum requirements is required, it’s smart to buy higher limits and additional coverage options. Accidents can result in costs that go far beyond the minimum policy limits leaving you financially exposed. Additional coverage options such as collision, comprehensive and medical payments coverage can give you more protection and peace of mind.
Why Auto Accident Settlements Go Over Policy Limits
There are certain factors that you need to be aware of when auto accident settlements go over your policy limits:
Severity of Injuries
The severity of the injuries in an auto accident is a key factor in auto accident settlements going over policy limits. Cases with catastrophic injuries such as traumatic brain injuries, spinal cord injuries resulting in paralysis or severe burns often require extensive medical treatment and long term care. These costs can quickly add up especially if lifelong medical support is needed.
High Medical Bills
High medical bills are another major factor. Accidents that require multiple surgeries, long hospital stays, extensive rehab and ongoing medical care can result in bills that go beyond the policy limits. Victims may also have costs for specialized equipment, home modifications and other adjustments to accommodate their injuries that add to the total cost.
Extensive Property Damage
Extensive property damage can also lead to settlements going over policy limits. This is especially true in multi-vehicle accidents or accidents involving high value assets. When the cost to repair or replace damaged property is high it can push the auto accident settlement amount beyond the insured limit. This includes not only vehicles but other damaged property such as structures or valuable personal belongings.
Legal Factors
Legal factors play a big role in determining auto accident settlement amounts. In cases with multiple defendants such as commercial vehicle accidents or accidents with multiple drivers the total liability can be split among the responsible parties.
This can result in higher overall settlements that go beyond individual policy limits. If an insurance company is found to have acted in bad faith by not properly defending a claim or denying a reasonable settlement they may be required to pay amounts beyond the policy limits.
At-Fault Driver’s Financial Responsibility
When the auto accident settlement goes over the policy limits, the at-fault driver may be personally responsible for the excess amount. This can lead to financial hardship and legal action to recover the balance. Victims can pursue additional compensation through personal asset claims or other insurance policies such as underinsured motorist coverage or umbrella policies.
What to Do When Auto Accident Settlements Go Over Policy Limits
When settlements go over policy limits, here are a few things you need to be aware of:
Umbrella Policies
An umbrella policy provides additional liability coverage beyond your standard auto insurance policy. If your settlement goes over your policy limits an umbrella policy can cover the balance. This type of policy is especially useful for big financial losses and to make sure you’re not personally liable for the excess damages. Buying an umbrella policy is smart insurance.
Underinsured Motorist Coverage
Underinsured motorist (UIM) coverage is another option when auto accident settlements go over policy limits. UIM coverage kicks in to cover the gap between the at-fault driver’s policy limits and the actual cost of damages. This coverage is optional but highly recommended. It’s especially important in severe accidents.
Bad Faith Claim
If an insurance company acts in bad faith by not properly defending a claim or denying a reasonable auto accident settlement within policy limits you can file a bad faith claim against them. Bad faith claims can force the insurance company to pay amounts beyond the policy limits. This legal recourse holds insurance companies accountable for their obligations and makes sure claimants get fair compensation.
Sue the At-Fault Driver
When auto accident settlements go over policy limits, the at-fault driver can be personally responsible for the excess amount. This may mean suing the driver to recover the balance. If the driver has significant personal assets this can be a good way to get additional compensation. However this option can be complicated and time consuming and the likelihood of recovery depends on the at-fault driver’s financial situation.
Multiple Defendants
In accidents with multiple defendants such as commercial vehicles or multiple at-fault drivers you can sue each party. This can increase the total compensation available to you for your damages. By suing all responsible parties you’ll maximize your chances of getting full compensation for your losses.
Why You Need a Lawyer
Settling claims when auto accident settlements go over policy limits is complicated. A personal injury lawyer can help you explore all your options, negotiate with insurance companies and represent you in court if needed. Legal expertise is key to making sure you get the compensation you deserve and aren’t left financially exposed after a serious accident.
Georgia Laws
Georgia is an at-fault state which means the driver who causes the accident is liable for the damages. In an at-fault state the injured party can file a claim with their own insurance company, the at-fault driver’s insurance company or sue the at-fault driver. This is why having adequate liability coverage is important to protect against financial liability in the event of an accident.
Georgia Statute of Limitations
In Georgia, there are strict time limits to file a personal injury lawsuit after an accident. The statute of limitations for personal injury is two years from the date of the accident. For property damage it’s four years. If you don’t file a lawsuit within these timeframes you may lose your right to recover. Knowing these deadlines is key to being able to sue if needed.
“No Pay, No Play” Law
Georgia’s “No Pay, No Play” law prohibits uninsured drivers from recovering non-economic damages such as pain and suffering in the event of an accident. This law is an incentive for drivers to have proper insurance coverage. If you are uninsured and get into an accident your ability to recover certain types of damages will be limited, so it’s important to comply with state insurance requirements.
Uninsured and Underinsured Motorist Coverage
Georgia does not require uninsured motorist (UM) or underinsured motorist (UIM) coverage but it’s highly recommended you have these options in your policy. UM coverage protects you if you get into an accident with an uninsured driver and UIM coverage if the at-fault driver’s insurance is not enough to cover your damages. These coverages are important financial protection and can make a big difference in your ability to get full compensation.
Comparative Fault
Georgia is a modified comparative fault state. Under this rule you can recover if you are less than 50% at fault for the accident. But your recovery will be reduced by your percentage of fault. For example if you are 20% at fault and your total damages are $100,000 you would be able to recover $80,000. Knowing this rule is key when figuring out your claim.
Adequate Insurance Coverage
With the laws in Georgia it’s important to have adequate coverage. Beyond the state minimums consider adding UM/UIM and umbrella policies to protect yourself financially. Adequate coverage means you’ll be better prepared for the costs of serious accidents and have peace of mind.
Contact a Experienced Douglasville Car Accident Lawyer Today!
If you’ve been in an auto accident in Georgia and dealing with insurance claims and settlements, you need an experienced Douglasville car accident attorney by your side. Knowing your rights and options can make a big difference in your case.
Contact us at 678-825-6004 for a free case review today!
