Tuesday, 27 May 2008
New Georgia Auto Insurance Law Gives Drivers More Coverage
Georgia Governor Sonny Perdue recently signed a bill that will give drivers more underinsured and uninsured motorist coverage.
Under current Georgia law, all drivers must have a minimum amount of auto insurance — $25,000 for the medical bills of another driver, $50,000 for the medical bills of two or more drivers, and $25,000 for property damage, reported the Atlanta Journal-Constitution.
But not every driver has auto insurance, even though it’s required by state law.
If you’re in an accident and the at-fault driver has no insurance or doesn’t have enough insurance, you’ll be stuck with the bills — unless you sue.
The new law will let you dodge both bullets by allowing you to use your own underinsured/uninsured motorist protection in such situations.
Your plan would make up any difference that the at-fault driver or their insurance can’t cover until your policy limits kick in, wrote the Journal-Constitution article.
The law goes into effect on January 1, 2009.
To get the “stacked” coverage, you’ll have to wait until your policy needs to be renewed. If you already have underinsured/uninsured coverage, you’ll automatically get the stacked benefits upon renewal. You can go without the coverage if you choose.
Whether or not the law will cause rates to go up is still unknown, wrote the article. Insurance companies are free to raise or maintain rates as they choose.
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