Car Insurance

Teen Drivers

Our local Georgia Farm Bureau agents are committed to being there for members. Because of their dedication and expertise, it isn’t uncommon for them to work with the same members for years — from helping them select their first auto policy to helping them add a teenage driver a few decades later. Your Georgia Farm Bureau agent will be able to help you find the coverage you need for a teen driver without breaking the bank.

Frequently Asked Questions About Car Insurance

What coverage should I look for in an auto policy?

The best way to ensure you have a quality policy that you understand is to work with an experienced agent who can walk you through the process. Not all insurance policies offer the same protection, which could result in crucial gaps in coverage and hidden costs in the long run. Some gaps may be roadside assistance, coverage for a rental car or covered repairs. We recommend learning about the options available before selecting a policy to make sure you’re getting the most value for your money.

Should I go by Georgia’s minimum limits when selecting auto insurance?

No. Every state has a minimum limit of auto liability that is required to carry a valid tag. In Georgia, the state required minimum is $25,000/$50,000/$25,000. Accidents happen every day and minimum limits are often inadequate to cover a loss. What happens if you hit a $75,000 vehicle and it’s your fault? If you carry minimum limits of $25,000 property damage, and you accidentally total an expensive vehicle, you’ll be responsible for paying the difference in your limits and the total cost of the claim. Insurance companies are not obligated to pay more than the coverage amount on your policy.

The same goes for bodily injury claims. Did you know the charge for a medical helicopter ride can top $60,000? If you injure someone and they must be airlifted, you’ll be responsible for the cost over your insured amount. For minimum policy limits, that means you have $25,000 for any one person’s injuries and $50,000 for all the injured people in the other vehicle. Drive safe and know your coverage. Ultimately, it’s the policyholder’s responsibility to choose the limits they carry.

What coverages might I be missing out on if I buy the cheapest insurance I can find?

The answer is, several! On your auto insurance, you might be missing coverage for roadside assistance, or for a rental car if your vehicle goes in for covered repairs. More importantly, you might be missing coverage for physical damage to your car as a result of hitting an animal, falling objects or a collision with another vehicle. Cheaper is not always better when it comes to your liability protection. If you just purchase the state-required minimum liability limits and have at-fault auto accident, the odds of you being underinsured are catastrophic. The same is true if the accident is not your fault. You could end up with a mountain of medical bills if the other person also has low limits. 

Are my insurance rates harmed by accidents from my past if I was not at fault?

Every insurance company is different. Some may look back three years on your driving record and claims history, while others may look back five years. According to Georgia law, not-at-fault accidents from your past cannot be surcharged by insurance companies. However, some companies may not be able to offer you coverage if you have had more than a certain number of accidents (even not-at-fault accidents) in the last three to five years.

Do I pay my deductible to the insurance company when I have an accident and have to file a claim?

No, you don’t owe your insurance company the deductible. That is your share of the cost to repair or replace the vehicle. If it can be repaired, you’ll owe the body shop that deductible when it’s time to pick up the vehicle. If it is totaled, you’ll see the deductible subtracted from the amount that the insurance company pays you for the value of your vehicle.

What does “limit of liability” mean?

This means the total amount of money that your policy covers. For example: The limit for rental car coverage might be $40 a day (for a maximum time period of 30 days). Or it could be $250,000 for injuries sustained by the persons in a vehicle you hit (in an at-fault accident, if your limit was $250,000). It simply means the dollar amount when your coverage would reach its limit. That is why it’s important to have a trusted agent who advises you which limits you should carry in order to protect yourself and your family. If you have an accident, the last thing you or your insurance company wants is not enough coverage to take care of the situation.

What does medical payments coverage really pay for? Is it worth carrying?

Medical payments coverage is an optional coverage on your auto insurance policy that will reimburse you for medical expenses that you (the policyholder), your family members or anyone else in your vehicle owe as a result of a covered accident. It is provided up to the insured limit regardless of who is at fault in the accident. Medical payments coverage will even reimburse if you are hit by a car while walking as a pedestrian. This coverage is valuable protection that is certainly worth considering for your auto policy.

Should I add on Uninsured Motorist coverage?

The two types of Uninsured and Under-Insured Motorist coverage that you are able to purchase in Georgia are called Added-On and Reduced-By. Understanding these two options is the key to deciding which makes the most sense for you.  

1. Added-On Uninsured/Underinsured Motorist coverage allows you to purchase an increase or “add-on” of additional limit above what might be provided by the at fault party in the event of an accident.  As an example, when the liable person’s policy pays the $25,000 limit for bodily injury and you have “add-on” coverage for $25,000 bodily injury, you have a total of $50,000 in underinsured bodily injury coverage ($25,000 from them and $25,000 from your policy) that would be available to you if your claim was valued at that amount.  In summary, for an additional amount of premium, your added-on coverage sits on top of the at fault’s liability limits to provide additional coverage if needed.
2. Reduced Uninsured/Underinsured Motorist limits reduces the coverage of the underinsured bodily injury coverage by the amount provided through the liable party.  As an example, when the other person’s policy pays the $25,000 limit for bodily injury, if you selected “reduced” coverage, any additional coverage your policy will pay is “reduced by” the amount paid by liable party.   If you have $50,000 bodily injury claim, then your coverage is reduced or offset by the other company’s payment of $25,000, before your policy pays any part of the loss.  In summary, your underinsured motorist limits are reduced by the amount of liability coverage the at fault party carries. 

Understanding Your Auto Policy: Common Terms

Do you understand what’s covered in your auto insurance policy? You’re not alone if you find some of the language confusing. Here’s a quick guide to some important terms found in common auto policies:

Limits of Liability 

Liability limits protect the assets you acquire. The United States is the most litigious society in the world, spending hundreds of billions of dollars every year on litigation. If you are sued for more than your policy limit, you could be responsible for paying the excess amount, which could be financially devastating. Choosing limits of liability is often done with lawsuits in mind.

Added-On and Reduced-By Uninsured Motorist 

Uninsured Motorist (UM) has two parts. UM is what your company will pay when you have bodily injury caused by an uninsured motorist or an under-insured motorist (UIM). That means that someone has caused bodily injury or property damage to you and they’re illegally driving without insurance, or their liability limits will not cover your medical or property bills.  

If the other driver is uninsured, Added-On and Reduced-By options in UM respond in the exact same way. Added-On and Reduced-By in UM/UIM is referring to what your insurance company pays with respect to what another carrier has already paid. Therefore, if the motorist who causes you injury is uninsured, they don’t have a carrier and therefore no means of payment. However, if the motorist who hits you is under-insured, their carrier will have already paid their policy limit to you. If your bills are higher than those limits, that’s where the difference between Added-On and Reduced-By matters.  

Added-On UM means we pay your selected limit “added on” to whatever the other carrier has paid. Reduced-By means we pay your selected limit “reduced by” what the other carrier has paid. For example, assume you have a $100,000 single limit on UM/UIM and you are hit by a motorist who has $50,000 single liability limits on their policy. Their carrier would pay you up to $50,000 and then your UM selection would determine what your carrier pays. If you have Added-On UM, your carrier would pay up to your limit of $100,000. If you have Reduced-By UM, your carrier would pay up to $50,000 (your $100,000 limit minus the $50,000 already paid to you).

Deductibles 

Deductible selection is an important aspect of risk management. The higher the deductible, the lower the premium. The lower the deductible, the higher the premium. When you transfer risk from yourself to your insurance company, your premium is higher. When you retain that risk, your premium is lower. When determining your deductible, consider how much you would be able to spend at any given time and still be able to pay your bills. 

Collision insurance versus Other-Than-Collision insurance

Collision insurance is used when you hit something, like if you back into a pole, another car or you’re at fault in hitting another vehicle. Other-Than-Collision insurance, previously referred to as “Comprehensive,” is when something hits you, like if a tree or hail falls on your car, or a dog or deer runs out in front of you. Other-Than-Collision insurance also includes theft.

Rental Reimbursement

Rental Reimbursement coverage is important if you do not have access to another vehicle while your vehicle is being repaired after a covered loss. Rental Reimbursement coverage helps pay the cost to rent a vehicle during this time. If you would be stranded without your primary vehicle, this is important coverage.  

Roadside Assistance

Roadside Assistance is included with every Georgia Farm Bureau policy. It is a lifesaver if your car is towed, if you lock your keys in the car or if you have to call for help with a flat tire. A network of service providers is just a phone call away.

Medical Payments

The optional coverage of Medical Payments on your insurance policy is for reimbursement of medical expenses incurred by you, or someone riding in your vehicle, when an automobile accident occurs. Some common examples include helping with an emergency room visit or paying some co-pays or deductibles when you or your passengers are hurt. You are covered regardless of who is at fault. 

 Liability-Only Coverage versus Liability and Physical Damage Coverage

The primary components in an automobile insurance policy are coverage for liability and physical damage. Liability Coverage is for the bodily injury and property damage you are legally required to pay if you are at fault in an accident. Physical Damage Coverage, commonly referred to as Collision and Other-Than-Collision coverage, pays to repair your damaged vehicle. Liability-Only coverage is required by the state to register and drive a vehicle. While the Georgia Financial Responsibility law only requires automobile Liability coverage, it is often wise to purchase Physical Damage Coverage as well.

Physical Damage Coverage is insurance for when you stand to lose a significant amount of investment in your vehicle if an accident or claim occurs. It is also typically required by the bank if there is a loan on the vehicle. Your personal agent can help you decide if this is required or something that makes sense for you to have. On the other hand, if you have an older vehicle of lesser value due to its age and mileage, you may choose to self-insure rather than pay the premiums for the Physical Damage Coverage. It is a cost/benefit analysis and is also something that your personal agent can assist you in evaluating.

In all of these scenarios, one thing is constant: You need a personal insurance specialist to assist you in navigating these decisions. Georgia Farm Bureau agents are here for you!