Georgia Car Insurance Laws: Minimum Coverage, Penalties and SR-22

Georgia drivers must carry liability insurance of at least $25,000 per person and $50,000 per incident for bodily injury and $25,000 per incident for property damage (25/50/25). Collision and comprehensive coverage are not required by state law (lenders usually require them). Policies must also include uninsured motorist coverage unless a named insured rejects it in writing.

Georgia uses the at-fault (tort) system: required liability insurance pays damages to others when you are ruled at fault for an accident, and the basic coverages sold are bodily injury liability, property damage liability and uninsured motorist coverage. Medical payments coverage for your own injuries is optional. The Alabama Department of Insurance's national list also places Georgia among the "Tort States."

Every auto liability policy on a vehicle principally garaged or used in Georgia must include uninsured motorist coverage for bodily injury and property damage, at limits of at least $25,000/$50,000 for injury and $25,000 for property, or equal to the policy's liability limits if higher (the insured may choose lower UM limits). The coverage does not apply if a named insured rejects it in writing, and need not be added at renewal with the same insurer after a rejection. Deductibles of $250, $500 or $1,000 are available. The insured may choose between UM coverage that adds on top of the at-fault driver's available liability coverage or (by written selection) coverage that pays only the difference between that coverage and the UM limits.

Owners and drivers must keep proof of the required insurance in the vehicle while it is driven; it may be paper or an electronic image on a mobile device. This requirement does not apply when the Department of Revenue's insurance database shows current coverage. Officers check for insurance at every stop and issue a citation if the driver lacks proof; if the driver later shows the court that coverage was in effect, the court may impose a fine of up to $25 and no license suspension. Insurers report coverage electronically to the Department of Revenue, and registration requires proof of Georgia liability insurance filed electronically or an insurance binder.

Violating Georgia's requirement to keep proof of the required minimum insurance in the vehicle (O.C.G.A. § 40-6-10(a)) is a misdemeanor punishable by a fine of $200 to $1,000, up to 12 months in jail, or both. Knowingly making a false insurance statement carries the same penalty. Administratively, the Department of Revenue charges a $25 insurance lapse fee for failing to keep continuous coverage on a vehicle with current registration; if the registration is canceled for not paying the lapse fee, reinstatement costs $60 for a first or second offense and $160 for more than two offenses in 5 years.

Insurers may cancel an auto policy only for listed reasons, including nonpayment, material misrepresentation, violation of policy terms, failure to disclose accidents and violations from the prior 36 months, a false or fraudulent claim, a license suspension or revocation within 36 months of the named insured or a household or regular driver, certain medical conditions, certain convictions within 36 months (any felony, DUI, vehicular homicide or assault, leaving the scene, vehicle theft, false license application), three or more moving violations within 36 months, or certain vehicle conditions or uses. Cancellation notice must be given at least 30 days before the effective date (10 days for nonpayment or for a policy in effect less than 60 days), with the reasons. Nonrenewal requires at least 30 days' written notice with the reasons, and certain nonrenewal reasons are prohibited. The Department of Insurance says a policyholder with the same insurer for at least three years cannot be nonrenewed because of just one claim, even an at-fault one, and a policyholder who believes a nonrenewal is unfair may request a review by the Insurance Commissioner in writing within 15 days of the notice.

The Georgia insurance department lists driving record, area of residence, gender and age, marital status, prior insurance, vehicle use and make and model as common rating factors. Insurers must offer reduced liability, medical and collision rates to drivers who qualify as "good students" (upper 20% of class, a B or 3.0 average, or Dean's List/Honor Roll). An insurer may not nonrenew a policyholder of at least three years because of just one claim.

Georgia defines a "salvage motor vehicle" as one damaged so that restoring it would require replacing two or more major component parts, or one for which an insurer has paid a total loss claim and that has not been repaired (regardless of the extent of damage) — but not a vehicle with only cosmetic damage from causes other than fire or flood, or a recovered stolen vehicle that is undamaged or not damaged to that extent. A vehicle restored by replacing two or more major component parts is a "rebuilt motor vehicle."

The seller completes the title assignment on the back of the Georgia title in blue or black ink (buyer's full legal name and address, sale date, odometer reading) and signs; the buyer also signs. Giving or accepting a title assigned in blank is a misdemeanor (fine up to $100 or up to 30 days in jail). Buyers have 30 days from the purchase or transfer date to apply for title at their County Tag Office; the title fee is $18, the annual registration fee $20, and Title Ad Valorem Tax applies. For an inherited vehicle, bring Form MV-1, the title in the deceased's name, certified Letters Testamentary or Year's Support (or a T-20 Affidavit of Inheritance), and a certified death certificate.

New Georgia residents must apply for a Georgia driver's license within 30 days of becoming a resident (the out-of-state license is surrendered; tests are generally waived unless it has been expired more than 2 years), and must register their vehicles within 30 days of moving to Georgia at the County Tag Office, after getting the Georgia license or ID. Registration requires proof of Georgia liability insurance, and residents of 13 metro Atlanta counties (Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Paulding and Rockdale) need an emissions inspection. New residents pay a 3% Title Ad Valorem Tax, an $18 title fee and a $20 registration fee.

File a complaint with the Georgia Office of Commissioner of Insurance and Safety Fire's Consumer Services Division, preferably through its online Consumer Complaint Portal (create an account, log in, and follow the instructions), after trying to resolve the dispute with the insurer. Phone: (404) 656-2070 or toll-free (800) 656-2298. The Division sends an acknowledgment with a case number, forwards the complaint to the company, and reviews whether laws or the policy were violated.