Smyrna, GA asked in Consumer Law, Contracts and Insurance Bad Faith for Georgia

Q: Is a carshield repair contract considered insurance in the state of Ga? If not does the state regulate them?

Ok. Apparently the question wasn't clear to some people. It isn't a question of is it auto insurance. If is a question of is that contract legally considered insurance against mechanical failures(I have heard the term "policy" used and they have "adjusters")? Also the question I had that if it isn't, are they in some way regulated by the state, was not answered. I want to know the best avenue to take if they are acting in bad faith instead of a useless BBB complaint.

1 Lawyer Answer

A: CarShield offers protection plans and warranties to their members and is not insurance. Their coverage extends to only to automobile repairs. Although having CarShield may be a good thing, it does not provide coverage for injuries damage caused by accidents. Therefore you should have insurance.

Under Georgia law, the owner of a motor vehicle must carry a certain amount liability insurance on their automobile. The minimum liability requirements for Georgia drivers is:

- $25,000 for bodily injury or death of a person (ex: a passenger, another driver, or pedestrian) per accident caused by the at-fault driver.

- $50,000 for the bodily injuries or deaths of more than one person per accident caused by the at-fault driver.

- $25,000 for property damage that occurs as a result of the accident caused by the at-fault driver.

A person injured in an automobile accident in Georgia can pursue compensation for their injuries and damage to their vehicle in one of three ways. These include the following:

- Filing a claim with their own insurance company

- Filing a claim against the at-fault driver's insurance company

- Filling a lawsuit against the at-fault driver

Contact Raines Legal Group, P.C. for more information.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.