What Should I Know About Georgia Car Insurance Laws?

Answer 1

If you drive a car in the United States, the car you drive is required to be covered by car insurance. However, the laws that govern car insurance are developed by the states. This results in car insurance laws that differ from state to state. One such state is Georgia.

As mandated by Georgia law, car insurance must cover a certain amount of damage created by an accident. This includes $25,000 for medical bills for each person involved in the accident. The minimum coverage for all bodily injury caused by a single accident is $50,000. The policy must also have coverage for up to $25,000 of property damage.

How money is collected from a car insurance policy in Georgia is determined by a "tort system." A driver in Georgia technically does not have to purchase "personal injury protection" with a car insurance policy. The purchase of "uninsured driver coverage" is also not required.

However, often times, drivers still do purchase these kinds of coverage. The reason for this is because the driver could be found At Fault for the accident under the guidelines of Georgia's tort system. If that is the case, the driver could be held liable and be forced to pay for any damages created by the accident. This system differs significantly from the "no fault" car insurance systems used in other states.

Georgia car insurance law also includes certain rules that govern the auto insurance that covers rental cars. In Georgia, like all cars, a rental car must have auto insurance that meets the state's minimum requirements for coverage.

This car insurance must be provided by the rental car company. What this means is that if a person's existing car insurance doesn't cover rental cars, that driver is required to purchase car insurance from the rental company. The rate charged can vary from company to company. However, it should not be over $14 a day.

There are a few situations in which a person may be exempted from Georgia's car insurance laws. This is the case for drivers that have moved to a different state. This also occurs when the ownership of a car is transferred to someone that lives outside of Georgia. Workers that only work in Georgia on a seasonal basis are also exempted from certain portions of Georgia's car insurance laws. Lastly, if the lease on a vehicle is terminated, the car does not need to be insured.