Every Georgia accident claim runs into one unavoidable constraint: the at-fault driver’s insurance policy limits. No matter how severe your injuries or how clear the liability, you generally cannot collect more than the available insurance coverage — unless you pursue additional sources. Understanding how policy limits work protects you from leaving money on the table or settling too early.
Georgia’s Minimum Liability Requirements
Georgia requires all drivers to carry at minimum $25,000 per person and $50,000 per accident in bodily injury liability coverage. These minimums are low. A single ER visit, a few days of hospitalization, and a month of physical therapy can easily exceed $25,000. When medical expenses and lost wages together surpass the policy limit, the injured victim faces a coverage gap.
The Policy Limits Demand Letter
When an insurer believes liability is clear and damages exceed or approach the policy limit, your attorney can send a policy limits demand — a formal request for the full policy amount within a specified time period. Georgia’s bad faith statute (O.C.G.A. § 33-4-6) creates consequences for insurers who refuse a reasonable policy limits demand and then face a higher verdict at trial. In some cases, the insurer can be held personally liable for the excess verdict. A properly structured policy limits demand is one of the most powerful tools in a Georgia plaintiff attorney’s toolkit.
When the At-Fault Driver Is Underinsured
If the at-fault driver’s policy limits are less than your total damages, your own underinsured motorist (UIM) coverage becomes the next source of recovery. UIM coverage on your policy kicks in to cover the gap between the at-fault driver’s limits and your actual damages, up to your UIM policy amount. Georgia offers both “add-on” and “reduced-by” UIM coverage — add-on coverage is substantially more valuable and worth the premium difference.
Multiple Defendants, Multiple Policies
Some accidents involve multiple at-fault parties — a distracted driver whose employer owned the vehicle, for example, or a contractor whose negligence contributed to a road defect. Identifying all potentially liable parties and all applicable insurance policies is a critical part of maximizing recovery. An attorney’s investigation can uncover coverage sources that are not immediately obvious. Request a free evaluation to discuss all available coverage in your specific case.