Drivers in Georgia are required to have bodily injury liability insurance in place by law. There are other types of insurance available that are not required, but are a good idea to invest in. Collision and comprehensive insurance coverage protect a driver’s own vehicle when a loss occurs.
Collision insurance pays for the cost of repairing a vehicle when it has been damaged as the result of an impact with another vehicle. The owner will have these costs covered up to the policy limit. He or she is required to pay the deductible before the insurance company will pay out any funds.
In a case where the car is totaled and cannot be repaired, the insurance company will also pay under the collision portion of the policy. The policyholder will receive a check for the Blue Book value of the car, less the amount of the deductible.
Since cars depreciate in value relatively quickly, it is possible to owe more on the vehicle than what it’s worth. Customers who finance their vehicle may want to consider adding gap insurance coverage to their policy. This provision makes up the gap between that the car is worth and the amount of the outstanding loan.
Comprehensive car insurance coverage protects a vehicle owner from loss due to reasons other than a collision. Damage or loss from fire, severe weather or acts of vandalism are all examples. It also pays compensation when the vehicle is stolen.