States commonly use one of two systems for auto insurance: either a fault-based “tort” system or a “no-fault” system. The distinctions are important and dictate how you get your injuries and vehicle damage covered.
Georgia is not a “no-fault” state and instead uses a “fault-based,” “at-fault,” or “tort” system for car insurance. Whichever name you use, this means that you will typically file your claim against the driver who caused the crash so their insurance can pay for it. However, you might have some add-ons to your policy that function like no-fault insurance.
For help with your car accident case, call the Atlanta, GA car accident lawyers at Rice, Murtha & Psoras for a free case review at (410) 694-7291.
Is Georgia a No-Fault State for Car Insurance?
Georgia does not use no-fault rules and instead uses a “tort” or “at-fault” system. Understanding what this means will be important if you were hurt in a car crash.
Typical No-Fault System
The typical no-fault car insurance system requires every driver to carry insurance that will cover them after a crash. In this system, the driver’s insurance pays for their own injuries and any injuries to passengers in their car. This is often referred to as a “first-party” claim since it is filed by the person named on the insurance policy: you.
This kind of system also usually makes it illegal to sue the other driver or file a claim for injury against them unless the injuries meet a certain “threshold” or limit. This is usually called a “serious injury” threshold because it requires something like a permanent injury, lost fetus, or death before a lawsuit can be filed. These definitions are also sometimes called “verbal thresholds” because they are based on a definition of “serious,” as distinguished from “monetary thresholds,” which are rarely used.
Keep in mind that no-fault systems are usually used for injuries and the resulting damages – lost wages, hospital bills, etc. They do not cover vehicle damage, which is handled separately through a claim against the at-fault driver’s insurance. Even so, policies can often include “collision” coverage that allows you to pay a deductible for coverage from your own insurance.
Pain and suffering damages are usually not allowed in a no-fault system; you’d have to sue to get those, and lawsuits are restricted only to cases with “serious injuries.”
Georgia’s At-Fault System
In Georgia, we have an insurance system that requires every driver to carry car insurance in case they hurt someone else. When you get injured, you file your claim with the at-fault driver’s car insurance, and their insurance covers your injuries and resulting damages. This is often referred to as a “third-party” claim since you are a third party to the insurance policy between the driver and their insurance company.
This means that you can file this claim along with your vehicle damage claim, as those property damage claims are also filed against the at-fault driver.
Before the other driver’s insurance will accept and pay your claim, they need to investigate and determine fault. Insurance companies may be reluctant to admit that their driver was at fault or pay out claims that they think they can challenge. However, this is where an at-fault system really shines.
If the insurance company is giving you the run-around or delaying your claim, our Augusta, GA car accident lawyers can file a lawsuit. At-fault systems like the one in Georgia do not block lawsuits against the at-fault driver, allowing us to file directly against them if we want to.
In an at-fault claim, you can also get compensation for pain and suffering.
Additional Policy Add-Ons in Georgia that Work Like No-Fault Coverage
Even though Georgia uses an at-fault system, there may be additional policies and add-ons you can get through your car insurance that function somewhat like a no-fault policy. With these additional coverages, you can get damages paid by your own insurance company through a first-party claim, regardless of who caused the accident. You can pay extra for these coverages so they are there when you need them.
Collision Coverage
With collision coverage, you can pay a deductible to your own insurance company to get them to cover your vehicle damage from a crash. If you use this, it will cover you whether you or someone else was at fault, and it may cover your damages quicker than waiting for a case to settle or go through a lawsuit against the at-fault driver.
Comprehensive Coverage
Comprehensive coverage covers vehicle damage from sources other than accidents. This can help if a tree falls on your car or if someone breaks in to steal things. Again, this has a deductible and allows your own insurance company to cover the damage.
Medpay
Medpay or “medical payments” coverage allows you to file a claim with your insurance for damages from your injuries. This functions very much like a no-fault policy and can be used to cover medical expenses and lost wages while you wait for an at-fault claim to get resolved.
Uninsured Motorist Coverage
“UM” or uninsured motorist coverage covers you in the event that the driver who hit you does not have insurance. Although everyone is required to carry insurance to cover the damages they cause others, many people violate this law. This could end up with them paying a fine and paying out of pocket for damages, but your UM coverage is there for situations where the other driver cannot actually afford to cover your injuries and damages.
Underinsured Motorist Coverage
“UIM” or underinsured motorist coverage helps make up the difference between what the other driver can cover and what you need covered if their insurance is too low to cover you. State minimum requirements for car insurance in Georgia only require the other driver to have $25,000 per person and $50,000 per accident for injuries, and $25,000 per accident for property damage. This is often called a “25/50/25” requirement.
Many crashes can easily total over $25,000 for injuries, meaning that the other driver’s insurance would be too low to cover your needs. UIM coverage can be a huge help if the other driver has bad insurance.
Call Our Car Accident Lawyers in Georgia Today
Call the Brookhaven, GA car accident lawyers at Rice, Murtha & Psoras today at (410) 694-7291 for a free case evaluation on your car accident claim.