Auto Insurance 101

Gene Brooks

Hypothetical Facts

• Sam Adams is driving down Abercorn St.

• Another driver runs stop sign on cross street

• The two cars wreck

What to do?

• Sam Adams in car wreck. • Taken to hospital• Car is towed away• Other driver says, “Don’t worry, I’m fully

covered.”

Insurance Coverages

Insurance Coverages

• Liability• Collision (optional)• Comprehensive(optional)• Medical Payments Coverage (optional)• Uninsured/Underinsured Motorists (optional)

Liability

• Only legally required coverage in Georgia• $25,000 minimum coverage-required– Provides legal representation– Bodily injury– Property damage

• Adam needs to find out about other driver’s coverage

Collision Coverage

• Optional• Covers Sam’s car if damaged• Deductible $500• Ins. Co. option to repair or replace• Some policies provide temporary rental• Would apply if no driver “at fault”

Comprehensive Coverage

• Applies to damage not covered by Collision coverage

• Deductible $100• Does not apply in Adam’s case

Medical Payments Coverage

• Optional• Only for medical bills incurred in wreck• Many policies have $5,000 payment• No subrogation• But none in this policy

Uninsured / UnderinsuredCoverage

Underinsured / Underinsured

• UNINSURED = at fault party has no insurance

• UNDERINSURED = at fault party has insurance but your claim exceeds that insurance

UM might apply

• If other ‘at fault’ driver is uninsured• If Sam’s losses are greater than amount of ‘at

fault’ driver’s insurance coverage• Sam’s insurance company steps into shoes of

‘at fault’ driver

Stacking / Non-Stacking

• Amount of UM available depends on number of autos insured under your policy and insurance on vehicle you are riding in

What happens

• Sam’s medical bills are $20,000 and his lost income is $10,000

• Other driver –underinsured• Sam places his UM company on notice• Claim denied• Sam files lawsuit against ‘at fault’ driver

Auto Insurance 101

Gene Brooks

Brooks Law Contact / Info Sheet

Web – brooks-law.com

Email – gbrooks@brooks-law.com