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Your Guide to the 25/50/25 Rule of Car Insurance Companies in Georgia

During your interaction with Georgia car insurance companies and agents, you might have often come across the term 25/50/25. For those motorists in Georgia that do not have any idea about this rule, read on to find more.

What does this formula actually mean and how are people affected by it. The first 25 in the formula stands for $25,000 dollars. These twenty five thousand dollars are needed as a minimum amount to cover the liability toward personal bodily injury or harm for a single individual involved in a traffic incident or road accident. This is the same amount of money you can press charges for in case you are the victim. In case more than one person is affected by the accident, Georgia state law states that a single person can be held liable for a maximum amount of $50,000.

So, the 50 in the above formula stands for maximum liability charges. The last 25 in the equation stands for $25,000 again but this time it is for coverage of property loss or damage that you or the other person involved might have caused. Property damage is inclusive of vehicle repair cost and public property.

If you ever think about giving up car insurance in Georgia, you should remember that the state follows the tort system of justice where one person is held accountable for the accident or mishap taking place. All courts and justice departments apply the tort system when holding someone responsible for traffic accidents. According to the tort system, it is the outcome of a single person’s actions which leads to an accident or an incident taking place.

One should also keep in mind that minimum state liability requirements differ from state to state and the laws of car insurance also differ between countries. If you are planning to travel outside your state, it is a good idea to consult your Georgia Car Insurance company and get a confirmation whether your insurance will be sufficient in other states or not. In some cases, drivers have to take special insurance plans for travelling purposes.

The 25/50/25 formula also shows up if you are involved in an incident with a person that has not taken out car insurance. If the other person is found responsible, your claim against him will have to stay within these defined limits. The same formula is applicable to you as well meaning that a maximum amount of $50, 000 is liable on you should you be involved in an accident without insurance.

It is of utmost importance to compare prices between different car insurance providers in Georgia before selecting one. By entering your ZIP code on the top of our page, you will be able to see a list of the top three insurance companies in Georgia which offer different coverage plans for the protection of your vehicle.