Alyssa Lane
In the state of Georgia, all drivers are required by law to carry a minimum amount of auto insurance. This means that if you drive in Georgia, you must have insurance that meets the legal standards. The minimum insurance requirements in Georgia are: $25,000 per person and $50,000 per incident in bodily injury liability, and $25,000 per incident in property damage liability. This means that if you are in an accident and are found to be at fault, your insurance will cover the other driver's medical bills and property damage up to these limits.
| Characteristics | Values |
|---|---|
| Required Insurance Coverage | Follows the Vehicle, Not the Person |
| Primary Insurance | Auto Liability Coverage |
| Minimum Liability Coverage | 25/50/25 |
| Bodily Injury Liability | $25,000 per person and $50,000 per incident |
| Property Damage Liability | $25,000 per incident |
| Uninsured Motorist Bodily Injury | $25,000 per person and $50,000 per accident |
| Uninsured Motorist Property Damage | $25,000 with a $250, $500, or $1000 deductible |
| Physical Damage Coverage | Comprehensive and Collision |
| Medical Payments Coverage | Med Pay |
| Personal Injury Protection | PIP |
What You'll Learn
What is the minimum liability coverage in Georgia?
Georgia law requires drivers to have liability insurance that meets the minimum limits to drive on the state's public roads and highways. Liability insurance helps pay damages to others on your behalf if they are injured or their property is damaged in an accident where you are ruled at fault.
The minimum liability coverage in Georgia is 25/50/25:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage per accident
If you are currently financing your vehicle, your lienholder could require physical damage insurance (collision and comprehensive) in addition to liability coverage.
If you cause injuries or damages that exceed your coverage limits, you will be responsible for the overage out of pocket. Most insurance professionals advise that you purchase enough liability coverage to protect your net worth or the highest liability limits you can afford.
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What is comprehensive insurance coverage?
While auto insurance is mandatory for drivers in Georgia, comprehensive insurance coverage is optional. It is defined as an optional coverage that protects against damage to your vehicle caused by non-collision events outside of your control. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature.
Comprehensive insurance is often referred to as "other than collision" coverage. It is important to note that lenders or leasing companies may require you to carry comprehensive coverage when you finance or lease a vehicle. Comprehensive coverage is not a separate type of insurance but rather a specific coverage added to an existing policy.
Comprehensive insurance covers damage to your car from animals, falling trees, natural disasters, theft, and vandalism. It does not cover damage to other vehicles or people. The coverage includes damage related to contact with animals, such as hitting a deer; natural disasters, including earthquakes, floods, and hurricanes; vehicle theft, or theft of certain vehicle parts; and fallen objects, including branches, rocks, or hail.
The cost of comprehensive insurance varies depending on factors such as the value of the vehicle, the location where it is registered, and the driver's insurance history. The average cost is approximately $134 per year but can rise to nearly double that amount depending on factors such as the state of residence.
Comprehensive insurance provides peace of mind and financial protection against unforeseen events and incidents outside your control. It is particularly useful if you live in an area prone to natural disasters, animal collisions, or vandalism.
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What is collision insurance coverage?
Collision insurance coverage pays for the cost of repairing or replacing your vehicle if it is damaged in an accident, regardless of who is at fault. This includes collisions with another vehicle or an object, such as a guardrail or a tree. Collision coverage is not legally required in any state, but it may be required by your lender if you're leasing or financing your vehicle.
Collision insurance is designed to protect your vehicle investment. It is particularly relevant if you drive a leased or financed car, a newer or more expensive vehicle, or an older car that still has good value relative to your deductible and monthly rate.
If you choose not to carry collision coverage, you will have to pay out of pocket for repairs or a replacement vehicle if you are found at fault in an accident or involved in a single-vehicle incident. Collision coverage can provide peace of mind and help you avoid the financial burden of unexpected repairs or replacements.
In the state of Georgia, collision coverage is not required by law. However, lenders or leasing companies typically mandate this type of "full coverage" policy. It is essential to understand the specifics of your insurance plan and whether it includes collision coverage, especially when granting permission to others to drive your vehicle.
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What is uninsured motorist coverage?
Uninsured motorist coverage is an important type of insurance that can protect you financially in the event of a motor vehicle accident. It covers you if you are hit by a driver with inadequate or no auto insurance. In other words, it ensures that you are compensated for damages that would normally be covered by the at-fault driver's insurance. This includes damage to your vehicle, as well as medical bills and lost wages for you and your passengers.
Uninsured motorist coverage is especially important because, according to the Insurance Information Institute, nearly 13% of drivers countrywide don't have auto insurance. In some states, the number of uninsured drivers is over 20%. If you are in an accident with an uninsured driver and don't have this coverage, you could end up paying for medical bills and vehicle repairs out of pocket. Even if you file a claim against your own policy, you may have a large collision deductible or insufficient coverage for injuries to yourself and your passengers.
Underinsured motorist coverage is usually offered alongside uninsured motorist coverage and protects you if you're hit by a driver who doesn't have enough coverage to pay for the damages or injuries they caused. This type of coverage is also important because many drivers carry only the legal minimum of insurance, which may be insufficient in the event of a serious accident.
Uninsured and underinsured motorist coverage are mandatory in many states and highly recommended for all drivers. Even in states where it is not required, purchasing this coverage can provide an extra layer of protection and peace of mind.
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What is gap coverage?
In the context of auto insurance, gap coverage, or Guaranteed Asset Protection (GAP) insurance, is an optional product that covers the difference between the amount owed on an auto loan and the amount paid by the insurance company in the event that the car is stolen or totalled. This difference arises because standard auto insurance policies only pay up to the value of the vehicle, which may be less than the loan amount, especially if the car is new or has been leased.
For example, if you finance a new car with a small deposit, in the early years of ownership, the amount of the loan may exceed the market value of the vehicle. In the event of an accident in which the car is totalled, gap insurance covers the difference between the vehicle's current worth (which is paid by standard insurance) and the amount still owed on the loan.
Gap insurance is generally required when leasing a vehicle and is typically offered by car dealers when purchasing or leasing a car. However, it can also be purchased from auto insurance companies, often at a lower price than what dealers offer. While it is an optional product, gap insurance provides financial protection for those who owe money on a depreciated vehicle.
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Frequently asked questions
The minimum liability coverage required by law in Georgia is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.
Yes, auto insurance is mandatory in Georgia. All drivers are required by law to carry at least the minimum amount of auto insurance.
Operating a motor vehicle without insurance in Georgia is considered a misdemeanor and can result in penalties such as a fine, jail time, license suspension, and vehicle impoundment.
Collision coverage pays for repairs to your vehicle if it is damaged in a collision with another vehicle or object. Comprehensive coverage, on the other hand, covers damage to your vehicle from incidents other than collisions, such as theft, vandalism, fire, severe weather, and floods.
In most cases, your auto insurance in Georgia will cover other drivers. The mandatory auto liability coverage in Georgia applies to the vehicle, so if you loan your car to someone and they cause an accident, your insurance will be the primary coverage. However, there may be exceptions depending on the specific policy and circumstances.
