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

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

Liability Only legally required coverage in Georgia Only legally required coverage in Georgia $25,000 minimum coverage-required $25,000 minimum coverage-required – Provides legal representation – Bodily injury – Property damage Adam needs to find out about other driver’s coverage Adam needs to find out about other driver’s coverage

Collision Coverage Optional Optional Covers Sam’s car if damaged Covers Sam’s car if damaged Deductible $500 Deductible $500 Ins. Co. option to repair or replace Ins. Co. option to repair or replace Some policies provide temporary rental Some policies provide temporary rental Would apply if no driver “at fault” 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 Optional Only for medical bills incurred in wreck Only for medical bills incurred in wreck Many policies have $5,000 payment Many policies have $5,000 payment No subrogation No subrogation But none in this policy But none in this policy

Uninsured / Underinsured Coverage

Underinsured / Underinsured UNINSURED = at fault party has no insurance UNINSURED = at fault party has no insurance UNDERINSURED = at fault party has insurance but your claim exceeds that 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 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 –