Georgia Regulations - First Newnan Insurance Group, Inc. | Newnan, GA
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Georgia Regulations

Automobile Insurance

What mandatory auto insurance laws exist in the state of Georgia?

  • In the state of Georgia, all drivers must carry accident liability insurance for all vehicles they own.
  • In the state of Georgia, the minimum amounts that you may carry in order to satisfy the law are $25,000 per person for bodily injury, $50,000 per accident for bodily injury to two or more people, and $25,000 per accident for property damage.
  • In the state of Georgia, the law allows certain exemptions from carrying auto insurance. These exemptions include:
  • Owner moved to another state or the ownership was transferred out of state
  • Vehicle lease was terminated
  • Vehicle was repossessed, stolen, or not driven because it was inoperable
  • Vehicle was stored or used seasonally for agricultural purposes
  • Vehicle was wrecked, salvaged, or junked 

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts)?

If you buy automobile insurance in the state of Georgia, your policy must include minimum liability coverage of: $25,000 per person for bodily injury  |  $50,000 per accident for bodily injury to two or more people  |  $25,000 per accident for property damage

What are the Rental Car Insurance Requirements?

In the state of Georgia, every car that you drive must have at least the minimum coverages in order to satisfy the law. If you are renting a car in the state of Georgia, the rental company, by law, must provide the state-required amount of liability insurance. If your current insurance policy or your credit card does not cover rental cars, you must purchase liability insurance from the car rental company. The cost typically ranges from $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Because Georgia follows a Tort system, state law does not require its motorists to purchase Uninsured/Underinsured Motorist coverage (UN/UIM) nor Personal Injury Protection (PIP) coverage. However, many Georgia motorists do add this optional coverage to their car insurance policies for added protection mainly because the Tort system is unlike No Fault coverage in that the Tort system holds the driver found to be at fault in an accident and their insurance company liable for all damages that result from the accident.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Georgia, it is a common practice for insurance companies to exclude a driver from your policy for a variety of legitimate reasons under the law. This is permitted under Georgia law. Such exclusions must be stated in the policy or by endorsement. The driver’s coverage is not valid while a specifically excluded driver is allowed to drive the vehicle, so it is important to be aware of all policy driver restrictions.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If you allow your insurance to lapse in the state of Georgia, the penalties are stiff. In addition to stiff penalties, your vehicle registration could be suspended. The state of Georgia defines a “lapse” as 10 or more days without continuous insurance coverage. If your coverage lapses for any reason, you will be fined a $25 lapse fee along with a $60 reinstatement fee before you can renew your license plates. For second and third offenses, the fees increase. By the third offense, your reinstatement fee will increase to $160. If you are caught driving with a suspended registration, you will be charged with a misdemeanor.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Georgia, insurance companies are permitted to use Personal Credit History to determine rates. Drivers with good credit and a clean driving record may be qualified as “preferred” customers. This means the risk is lower for the insurance company and in turn you will enjoy lower premiums.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

Georgia follows a Tort system. This means that the state of Georgia does not require its motorists to purchase Personal Injury Protection (PIP) coverage nor Uninsured/Underinsured Motorist coverage (UN/UIM). However, many Georgia motorists do add this optional coverage to their car insurance policies for added protection mainly because the Tort system is unlike No Fault coverage in that the Tort system holds the driver found to be at fault in an accident and their insurance company liable for all damages that result from the accident.

What is the average auto insurance premium in the state of Georgia? As of what year?

As of 2013, Georgia’s resident’s average insurance premium was approximately $800, the 19th most expensive in the nation. This was up 4.2% from the previous year. The national average was $841.

Sources

Insurance Information Institute

Georgia Department of Insurance