Is Georgia a No-fault State for Car Insurance Purposes?
Georgia is not a no-fault state for car insurance purposes. Instead, it uses a tort system. Under this type of insurance plan, people who have been injured in an accident have the right to sue to collect damages from the at-fault driver. When the person deemed responsible for the accident has coverage, his or her insurance company pays out on the claim.
It may tempting for consumers who want to keep their Georgia car insurance costs down to limit the level of coverage they carry to the minimum required under state law. Doing so means the driver is conforming to state law, but it doesn’t mean that the customer has the level of protection necessary to pay for the damages caused if the accident is a serious one.
Third party liability coverage is meant to pay for medical bills, rehabilitation expenses and lost wages incurred by the occupants of the other vehicle following an accident. If an accident is serious enough to require the injured person to be admitted to hospital for surgery and/or the victim is permanently disabled, a policy that pays out based on the minimum will probably not be enough to fully satisfy the claim.
Once the available Georgia car insurance coverage has been exhausted, the at-fault driver is responsible for paying the remaining balance owing personally. Rather than exposing him or herself to potential financial ruin, a better action is to shop around for the best pricing on a policy that provides adequate coverage.