Choosing the right liability limits for your Georgia auto policy is a critical decision that can significantly impact your financial security in the event of an accident. Liability insurance is designed to cover the costs of injuries and damages you may cause to others while driving. However, determining the appropriate amount of coverage requires understanding your needs, state requirements and potential risks.
Understanding Georgia’s Minimum Liability Requirements 
Georgia law mandates that drivers carry minimum liability coverage to help cover third-party accident-related claims for property damage and bodily injury.
These limits help ensure that drivers can cover at least some of the costs associated with an accident. However, these minimums may not protect you fully, especially in more severe accidents.
Your agent may recommend increasing your auto liability limits for the following reasons:
- Medical expenses—The costs of medical care can quickly escalate, especially if multiple people are injured. Higher bodily injury limits can help cover these expenses and prevent you from paying out-of-pocket.
- Legal expenses—Legal fees can be substantial if you are sued because of an accident. Higher liability limits can provide more coverage for these potential expenses.
- Vehicle cost—With the increasing value of vehicles on the road, Georgia’s minimum limits might not be enough to cover the cost of repairing or replacing another driver’s car and other property like fences or buildings.
- Costly damage—Higher liability limits help protect your assets, such as your home, savings and investments. If the damages are higher than your insurance limits, you could be personally liable for the difference, putting your financial future at risk.
Factors to Consider When Choosing Your Limits
While Georgia’s minimum requirements might be sufficient for some, many insurance experts recommend higher limits for better protection. Evaluate your assets and overall financial health. If you have significant assets, opting for higher liability limits is wise to protect them.
Assess your comfort level with risk. Higher limits provide more peace of mind, knowing you have sufficient coverage in case of a significant accident.
Consider your auto insurance budget. While higher limits increase your premium, the additional cost is often reasonable compared to the potential financial impact of being underinsured.
Contact Us
Contact Peachstate Insurance, which has locations across Georgia, to work with an experienced agent.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.