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.
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.
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