Georgia Car Insurance Guide

Most state auto insurance laws are similar, but since some differences always exist, you need to familiarize yourself with your own state's regulations. The Georgia Department of Revenue verifies coverage when you are stopped by a police officer, so it's a bad idea to try to drive without coverage.

Georgia Car Insurance Laws

The Peach state requires minimum liability insurance levels of $25,000 bodily injury, $50,000 per accident, and $25,000 property damage. Although comprehensive and collision insurance are not required by law, your lender or leaseholder may require you to have these coverages. Keep in mind that hospital costs can be quite expensive, and many popular new vehicles cost more than $30,000. You may want to consider buying more than the minimum vehicle insurance coverage required if you think you may need it.

The insurance industry recommends a minimum liability coverage of 100/300/50. This means that, for one auto accident, your insurance company will pay $100,000 per person for bodily injuries; $300,000 in total bodily injuries; and $50,000 in property damage.

Comprehensive and Collision

Comprehensive insurance protects your vehicle against damage like broken windshields or other, non-auto-accident-related damage. Collision insurance takes care of damages done to your vehicle, regardless of which driver is at fault. For example, if someone else causes the accident, but his insurance coverage is insufficient to pay the whole amount needed to cover your car repairs, your collision insurance coverage will pay the amount left over (after your deductible has been paid).

Uninsured/Underinsured

Even though liability insurance is required in 45 states, 17 percent of U.S. drivers do not have it, and some who do, do not have enough coverage. For this reason, many states require that you also obtain uninsured/underinsured motorist coverage. This coverage is intended to protect you in case your car is damaged by one of these drivers.

Medical Payments (aka MedPay)

Medical payment coverage pays medical bills and lost wages for you and your passengers, regardless of who is at fault in the accident. If you already have health insurance through your employer, however, you may not need this coverage.

Rental Reimbursement

While this coverage may sound good, you could actually set aside the money you would be paying towards this insurance in an emergency account, so you can earn interest on it, and if you ever need it, it will be there. And usually, if the accident is not your fault, the other driver's insurance company will pay the cost of your rental car.

Gap Insurance

Gap insurance was created to close the gap between what your car is worth and what you still owe on it. If you own your car free and clear, you won't need this insurance, but if you still owe, you should give it some thought.