There is a great need for car insurance salespeople to have a way to sell insurance policies that have limited coverage. As you may know, car insurance policies do not cover all possible situations. The salesman’s best bet is to play on the consumer’s emotions and convince them that they need more than the bare-minimum coverage. If a consumer feels like they aren’t protected enough, then the sale can be made. The phrase “full coverage” sounds great to consumers, but it doesn’t actually exist anywhere in the law. Yet, it is used all the time by car insurance salespeople. This creates a misleading image when consumers think they are covered in all situations.
Full coverage does not mean that an insured has unlimited coverage or even enough coverage. It is important to know exactly which coverages you have so you can make informed decisions about what you need to protect your assets—especially if you’re involved in an accident with another driver who doesn’t have enough coverage to pay for your
It’s a fact that most people carry the bare minimum coverage. The minimum limits of liability insurance required under Georgia law are: Bodily Injury Liability – $25,000 per person and $50,000 per incident. Property Damage Liability – $25,000 per incident.
Most people think they’re covered by their auto insurance policies when they’re in an accident. But only a small percentage of Georgia residents carry enough insurance to protect themselves from the high cost of injuries – especially if there are multiple victims or extensive property damage.
A serious injury can easily exceed $100,000 or even half a million dollars, depending on the extent of the injuries and whether or not the victim is permanently disabled.
A great way to protect yourself and your family is to increase your coverage limits above the state required minimums. You can do this by purchasing optional “underinsurance” supplements. These are very affordable and can be added to any auto policy.
Georgia requires all drivers to have Liability Insurance to drive. Unfortunately, there are some drivers who either do not follow the law or may unknowingly allow their coverage to lapse or cancel. These drivers are considered “uninsured.”
It is also possible that another driver might have an insurance policy with limits too low to pay for all of your property damages and/or injuries in a car accident. Call them “underinsured”.
If you are ever injured in a car accident caused by a “negligent” (not following the rules of the road) driver, whether he or she is uninsured or underinsured, your own insurance company will cover your losses up to the limits of your policy through what is called “Uninsured (UM)/Underinsured(UIM) Motorist Coverage.”
In an effort to keep your insurance costs down, the first coverage that is often sacrificed is medical payments coverage.
Under Georgia law, medical payments coverage (also known as “MedPay”) is a type of personal injury protection that is available under a Georgia auto insurance policy. O.C.G.A. § 33-34-2(1) provides as follows:
“Medical payments coverage” includes any coverage in which the insurer agrees to reimburse the insured and others for reasonable and necessary medical expenses and funeral expenses incurred as a result of bodily injury or death caused by a motor vehicle accident, without regard to the insured’s liability for the accident. Coverage shall be available to the named insured, resident spouse, and any resident relative while occupying the covered motor vehicle, and to any other person legally occupying a covered motor vehicle.
So let’s put that concept of full coverage to bed. Simply put, full coverage is a lie. It doesn’t exist anywhere in the law and never has. Ultimately, by using full coverage as a sales tactic, car insurance companies miss a golden opportunity to help people make educated decisions about their auto insurance. If a company tells you that their coverage is better than the competition, and never specifies why, then it’s probably time to shop around and see if another company can save you money on the same level of protection.