car, calculator, money, and penCar insurance can be difficult to understand. Because of the many variables, when people get into an accident, they do not know what they deserve under their coverage, not to mention under the other driver’s insurance. Here are three of the most common factors of car insurance policies relevant to accident coverage:

1.     Liability Limits

Liability limits determine the amount of money available to compensate someone in the event that you cause an accident. This coverage is designed to protect your personal assets from being taken to collect compensation if your negligence causes them injury or other damage. You should generally select a level of liability that corresponds with the amount of assets you have to cover. Liability limits are generally determined when you select a plan, but can be adjusted according to your insurance company’s policies.

In Georgia, the law specifies that the minimum amount of liability coverage that drivers are required to have is 25/50, which means $25,000 per person and $50,000 per accident. The difference between these numbers is important if there are multiple injured parties. If only one person is injured in the wreck, the first “per person” amount applies. This means that there is $25,000 available to compensate the injured party for his or her medical bills and suffering. The second “per accident” number applies if multiple parties are injured. In this case, the $50,000 is divided among all the injured people. If this minimum coverage is not enough, you may or may not be responsible for the excess, depending on your policy and the situation.

2. Medical Payments Coverage

Medical payments coverage, or Medpay coverage, is optional coverage that people can add to their plans to cover any medical expenses related to an accident. This coverage pays for your bills right away, no matter who is at fault. This can be beneficial in the event that you are injured in an accident, because they will pay your medical expenses while your treatment is ongoing. You do not have to wait for the long claims process to finish. Medpay payouts do not have to be reimbursed if expenses are not fully covered through a liability insurance settlement. You may even get more money this way, because settlements are usually based on the total amount of medical bills, not outstanding balances.

3. Liability Limits

Liability limits determine the amount of money available to compensate someone in the event that you cause an accident. This coverage is designed to protect your personal assets from being taken to collect compensation if your negligence causes them injury or other damage. You should generally select a level of liability that corresponds with the amount of assets you have to cover. Liability limits are generally determined when you select a plan, but can be adjusted according to your insurance company’s policies.

In Georgia, the law specifies that the minimum amount of liability coverage that drivers are required to have is 25/50, which is shorthand that means $25,000 per person and $50,000 per accident. The difference between these numbers is important if there are multiple injured parties. If only one person is injured in the wreck, the first “per person” amount applies. This means that there is $25,000 available to compensate the injured party for his or her medical bills and suffering. The second “per accident” number applies if multiple parties are injured. In this case, the $50,000 is divided among all the injured people. If this minimum coverage is not enough, you may or may not be responsible for the excess, depending on your policy and the situation.

4. Un-Insured and Under-Insured Motorist Coverage (UM)

Un-Insured and Under-Insured motorist coverage, or UM coverage, is designed to cover you if you are not at fault for an accident, but the at-fault party either does not have valid car insurance or does not have enough coverage to pay for your bills. This can be important if you are in a serious accident with a driver who only has the minimum legally-required insurance. It is highly recommended to at least have a minimum amount of UM coverage, because there is little way to hold the other party accountable if they are not covered.

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While these are the key parts of your insurance policy that you must understand before you are ever in an accident, car insurance is always a complicated subject. It has special jargon and is usually complicated due to loopholes and legal language. When you have been in an accident, the last thing you want to have to do is fight your insurance company for the settlement you deserve. If you were the victim of a traumatic car accident, contact Van Sant Law as soon as possible. Contact us at any time for a free consultation to discuss how we can work with insurance companies to assure the maximum settlement possible. Trust an expert to understand the intricacies of your insurance policy and get you the compensation you deserve.

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