It has come to our attention that many people do not have adequate automobile and homeowner’s insurance coverages. One reason you purchase automobile liability insurance is that it is required by law. However, the statutory minimum coverages imposed under Georgia Law sometimes are not adequate to cover losses arising out of motor vehicle collisions. It is important to purchase homeowner’s and automobile insurance coverages to guard you against loss to your dwelling, personal property, your vehicle and to protect yourself from claims made by third parties against you for any negligent acts that you, someone in your household, or someone using your car may commit. After you finish reading this letter, you should immediately contact your insurance agent and make sure that you have the proper insurance coverages.

As a point of reference, I recommend the automobile insurance coverages listed below as minimum coverages:

$100,000.00 per person Bodily Injury Liability
$300,000.00 per accident Bodily Injury Liability
$100,000.00 Property Damage Liability

$ 25,000.00 Medical Payments Benefits
$ 10,000.00 Loss of Income Benefits (If available)
$100,000.00 per person Uninsured/Underinsured Motorist Bodily Injury Liability ?add-on? coverage/$300,000.00 per accident Uninsured/Underinsured Motorist Bodily Injury Liability ?add-on? coverage.

$ 50,000.00 per accident Uninsured/Underinsured Motorist Property Damage Liability

The above coverages are minimum coverages. However, I recommend the following coverage for better protection:

$300,000.00 per person Bodily Injury Liability
$500,000.00 per accident Bodily Injury Liability
$300,000.00 Property Damage Liability

$ 50,000.00 or Maximum Coverage Available – Medical Payments Benefits

$ 10,000.00 Loss of Income Benefits (If available)

$300,000.00 per person Uninsured Motorist Bodily Injury ?add-on? coverage/$500,000.00 per accident Uninsured Motorist Bodily Injury Liability ?add-on? coverage

$100,000.00 per accident Uninsured/Underinsured Motorist Property Damage Liability

Additionally, I recommend the purchase of $1,000,000 personal liability umbrella coverage and $1,000,000 of additional uninsured/underinsured motorist bodily injury coverage. If the liability insurance company does not have that amount of coverage available for uninsured/underinsured motorist bodily injury then purchase the maximum amount of uninsured/underinsured bodily injury coverage available. As a general rule, individuals should have liability insurance coverages that total approximately three times their family net worth. The higher your liability insurance limits are, the less likely you are to risk your personal assets due to your negligence.

Liability coverage is important to protect the insured from any claim that a third party may make against him. Uninsured/underinsured motorist liability coverage is important to allow
the insured to make a claim against his own policy in the event that a defendant who may cause damages or injury to the insured may not have insurance coverage or may not have adequate insurance coverage. Uninsured/underinsured motorist coverage is just as important to you as liability insurance coverage.

Medical Payments coverage is important so that all medical bills will be paid by the insurance carrier. Loss of income benefits are important so that the insured may recover for his loss of income immediately, rather than having to wait until the time of settlement or judgment against the defendant.

If you own a home or you are renting a home or apartment, you should purchase liability insurance coverage with your homeowner’s/renter’s policy. I suggest the minimum coverage of $300,000 single limit but prefer coverage of $500,000 single limit. Additionally, I suggest the purchase of the maximum medical payments coverage available. Also, I suggest that you insure the structure and contents to 100% of replacement cost.

You may require other insurance coverages not mentioned here. To make sure that you are adequately insured, I would suggest that you take immediate action to examine your insurance program with your insurance agent.