Georgia's Written Cancellation Clause: Auto Insurance And The Fine Print

In Georgia, vehicle owners are required to carry a minimum level of liability car insurance in the event that they cause a traffic accident. This includes $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, and $25,000 property damage liability per accident. While Georgia law does not require physical damage coverage, lenders or leasing companies usually do. When it comes to cancelling auto insurance in Georgia, it is recommended that vehicle owners cancel their vehicle registration before cancelling their insurance coverage to avoid fines and penalties. However, it is unclear whether written cancellation is required.

Georgia auto insurance minimum requirements

In Georgia, liability car insurance is mandatory for all drivers. This insurance covers the other driver and their passengers if you are found to be at fault for an accident. The minimum coverage amounts are:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $25,000 property damage liability per accident

These amounts are called "minimum limits" and are intended to provide a small, basic level of protection for a person who suffers a personal injury in a car accident. For example, if a person is injured due to your negligence, they have the right to recover medical expenses, lost wages, vehicle repair costs, and damages for pain and suffering from you. If you have "minimum limits", the most your auto insurance will pay any one person is $25,000, and the most it will pay for all persons injured in the same car accident is $50,000. If the injured persons have damages greater than your insurance coverage, they have the right to collect the amount of their damages in excess of your insurance coverage from your personal assets.

Liability insurance is a requirement to drive on Georgia's public roads and highways. It is illegal to drive or allow someone else to drive a vehicle that is uninsured. Georgia uses the Georgia Electronic Insurance Compliance System (GEICS) to verify your insurance status. While it is your car insurance carrier's responsibility to report your insurance status, you may want to verify your information is accurate at the Vehicle Insurance State Inquiry Application.

In addition to liability insurance, Georgia requires all drivers to have uninsured motorist insurance. Unfortunately, some drivers do not follow the law or may unknowingly allow their coverage to lapse or cancel. If an uninsured driver causes an accident that damages your vehicle or injures you or your passengers, uninsured motorist insurance would protect you.

Physical damage insurance, which covers loss or damage to your own vehicle, is not required by Georgia state law. However, if you financed or leased your vehicle, the lender or leasing company usually requires it. There are two types of physical damage insurance: comprehensive, which covers theft, vandalism, and fire-related losses, and collision, which covers losses associated with vehicle collisions.

Cancelling auto insurance in Georgia

Georgia has specific requirements for drivers to carry a minimum level of car insurance. This includes liability insurance, which helps pay for damages to others if the policyholder is ruled at fault in an accident. The minimum liability insurance coverage in Georgia is set at $25,000 per person and $50,000 per incident for bodily injury, and $25,000 per incident for property damage.

While liability insurance is mandatory, physical damage insurance, which covers loss or damage to the policyholder's vehicle, is not required by Georgia state law. However, lenders or leasing companies usually require this type of insurance if the vehicle is financed or leased.

Uninsured motorist coverage, which protects the policyholder in the event of an accident caused by an uninsured or underinsured driver, is also not mandatory in Georgia. Policyholders can reject this coverage in writing if they so choose.

When it comes to cancelling auto insurance in Georgia, it is important to follow the proper procedures to avoid fines and penalties. Firstly, it is recommended to cancel your vehicle registration before cancelling your insurance coverage. This is because it is illegal in Georgia to have a registered vehicle that is uninsured, and doing so may result in fines and penalties.

To cancel your vehicle registration in Georgia, you will need the following:

• Your license plate number or Vehicle Identification Number (VIN)
• Your driver's license number or Letter ID
• Form MV-18J Application of Voluntary Registration Cancellation, if cancelling in person

You can cancel your vehicle registration online through the DRIVES e-Services website or in person at your local County Tag Office. After cancelling your registration, you can proceed to cancel your insurance coverage.

While cancelling your auto insurance in Georgia may be necessary in certain situations, it is generally recommended to consider other options first. Cancelling your insurance policy can result in expensive reinstatement fees when you seek coverage in the future. Instead, you may want to explore reducing or pausing your coverage, especially if you are not driving as much.

In conclusion, while Georgia has specific requirements for minimum auto insurance coverage, it is possible to cancel your policy if needed. However, it is important to follow the correct procedures, including cancelling your vehicle registration first, to avoid any fines or penalties. Additionally, exploring alternative options such as reducing or pausing your coverage may be more cost-effective in the long run.

Cancelling vehicle registration in Georgia

In Georgia, vehicle owners can voluntarily cancel their registration if the vehicle has been sold, is not being driven, or is no longer operable. It is important to note that you should cancel your registration before cancelling your insurance coverage to avoid fines and penalties pursuant to Georgia law, which requires vehicles to be insured. It is illegal to drive or allow someone else to drive a vehicle with cancelled, suspended, or revoked registration, or if the vehicle is uninsured.

How to Cancel Your Vehicle Registration in Georgia:

You can cancel your vehicle registration in Georgia online or in person.

Online:

• Visit the DRIVES e-Services website.
• Follow the prompts to cancel your registration.
• You will need your license plate number or VIN number, and your driver's license number or Letter ID.

In Person:

• Download and fill out Form MV-18J Application for Voluntary Registration Cancellation.
• Locate and visit your local County Tag Office to submit the completed form in person.
• You will need your license plate number or VIN number, and your driver's license number or Letter ID.

Please keep a copy of your vehicle registration cancellation for your records.

Penalties for driving without insurance in Georgia

Georgia law requires that all drivers have proof of insurance and carry at least the state-mandated minimum amount of car insurance. Driving without insurance in Georgia is a misdemeanor and can incur serious penalties, including fines, jail time, and the loss of driving privileges.

If you are unable to provide proof of insurance when requested by a police officer, you can be charged with no proof of insurance. The maximum fine for this offence is $25. If you are convicted of driving without insurance, you could face a fine ranging from $200 to $1,000, up to 12 months in jail, or both. Your license will be suspended for at least 60 days and up to 90 days.

If your insurance is terminated or expires, your carrier will electronically notify the state. You are given 30 days from the date of expiration to provide proof of new insurance. If you can verify continuous insurance coverage and send the state your new insurance information within this period, there are no penalties. However, if you had a short lapse in coverage, you will owe the state a $25 lapse fee. If this is not paid within 30 days, your registration will be suspended, and you will have to pay a $60 reinstatement fee.

For a first offense of driving without insurance, your license and registration will be suspended for 60 days, and you will be required to have a six-month insurance policy that meets the state's minimum requirements. You may also be required to provide an SR-22 certificate to prove you have the necessary insurance coverage. You will need to pay a $25 lapse fee and a $60 reinstatement fee to get your license and registration back. You could also face up to 12 months in jail, depending on the circumstances.

If you are caught driving uninsured for a second time within five years of a previous violation, your license and registration will be suspended for 90 days, and you will need to show proof of at least a six-month minimum insurance policy to get your driving privileges back. You will have to pay a $25 lapse fee and a $60 reinstatement fee, and you may face up to one year in jail.

If the third offense occurs within five years of previous violations, your license and registration will be suspended for six months, and you will be required to have at least the minimum required coverage for six months to get your license and registration back. You will need to pay a $25 lapse fee and a $160 reinstatement fee. You may also be required to serve up to 12 months in jail.

Alternatives to auto insurance in Georgia

Georgia drivers must have liability insurance that meets the minimum limits required by law to drive on the state's public roads and highways. The minimum limits of liability insurance required under Georgia law are:

• Bodily Injury Liability – $25,000 per person and $50,000 per incident
• Property Damage Liability – $25,000 per incident

However, there are alternatives to auto insurance in Georgia. If you are unable to buy Georgia car insurance on the open market—due to DUIs, poor credit, or other reasons—you can shop for coverage through the Georgia Automobile Insurance Plan (GAAIP). GAAIP offers auto insurance coverage to high-risk drivers who cannot get insurance through regular companies. It is a last resort for those facing challenges in securing insurance from private companies, often due to a poor driving record or a history of accidents.

Frequently asked questions