Georgia Car Insurance Requirements

Georgia drivers must meet the state’s minimum liability insurance requirements to legally get behind the wheel. And since it’s an at-fault car insurance state, if you cause an accident, you’re responsible for paying for any damages and injuries.
But auto insurance protects against more than just injuries and damaged property — it also covers vehicle theft, which is common in the Peach State. As of 2022, Georgia had the 10th-highest number of vehicle thefts in the nation, with over 26,000 cars stolen, according to the Insurance Information Institute (Triple-I).
Car insurance regulations vary by state, so it’s important to understand your state’s specific coverage requirements. Here’s what you need to know about Georgia car insurance requirements and how to find the best auto insurance.

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What Are Georgia’s Car Insurance Requirements?

Georgia requires all drivers to purchase two types of liability coverage: bodily injury and property damage. Bodily injury liability pays for the medical bills of another person who is injured or killed in a car accident you cause, and property damage liability pays for damages to another person’s vehicle (or other property) from a car accident you cause.
We’ll explain how these required coverages work below.

Bodily injury liability

Georgia requires drivers to have a minimum of $25,000 per person and $50,000 per accident in bodily injury liability (BI) coverage — but you can always purchase higher coverage limits.
Bodily injury liability kicks in after an accident that injures another person or their passengers. The at-fault driver’s BI liability insurance pays for the injured parties’ medical expenses, pain and suffering, and lost income.

Property damage liability

Drivers in Georgia must also have a minimum of $25,000 in property damage (PD) liability coverage. This insurance pays for damages you cause to another person’s property, such as their vehicle, fence, or mailbox. As with bodily injury liability, you can always purchase a higher coverage limit for your property damage liability coverage.

Penalties for Driving Without Car Insurance in Georgia

Under Georgia law, the insurance policy follows the car, not the driver, which means a lapse in coverage makes a car illegal to drive. You must maintain continuous auto coverage and keep proof of insurance in your vehicle at all times. Uninsured motorists face several penalties for failing to meet minimum insurance requirements.
The Georgia Department of Driver Services uses an electronic insurance compliance system to determine if your vehicle meets insurance requirements. The system issues a notice to reinstate coverage if 10 consecutive days pass without an insurance policy with the required liability coverage.
You’ll have 30 days from the date of the notice to reinstate your insurance and pay a $25 lapse fee and a $60 reinstatement fee, or the state will suspend your registration. If you don’t reinstate your insurance or cancel your car registration, you’ll be facing a misdemeanor. The state may issue you a fine of $200 to $1,000 and up to 12 months of jail time.

Georgia Car Insurance Laws You Should Know About

In addition to the minimum liability insurance, other auto insurance laws and programs are unique to Georgia, such as the diminished value statute, self-insurance certification, and Joshua’s Law. Let’s take a closer look at each.

Diminished value statute

A car’s value depreciates for different reasons, and getting into a car accident is one of the main causes. Once a car is in a collision, it loses some of its resale value — even if the vehicle is repaired properly or the damage is minor. While this may not make a difference in the short term, a car with a diminished value will sell for a lower price in the future.
If you get into an accident that isn’t your fault, you may be eligible to receive diminished value compensation. This is essentially the difference between your vehicle’s value before and after the accident. You can file a claim to request this compensation from the at-fault driver’s insurer.
Your car must meet the following requirements to be eligible:

• A market value of over $7,000

• At least $500 in damage from the accident

• Under 10 years old

• Average or lower mileage

• A clean title

Self-insurance

Though Georgia requires all vehicles to have minimum liability auto insurance policies, you can apply for a certificate of self-insurance through the Commissioner of Insurance. To qualify, you must prove you have a net worth of at least $100,000 and make a security deposit or purchase a surety bond worth at least $50,000.

Joshua’s Law

Named for Joshua Brown, a 17-year-old driver who died after a car accident in 2003, Joshua’s Law requires 16- and 17-year-olds to complete a Department of Driver Services-approved teen driver training before receiving a Georgia license.
Though young drivers can complete the driver training requirements in several ways, each method requires at least 40 hours of supervised driving plus classroom instruction.

Are Georgia Minimum Car Insurance Requirements Enough?

Georgia’s minimum car insurance requirements might not provide the right coverage for your needs. That’s because the state minimums are pretty low and likely won’t be enough to pay for the medical care of someone seriously injured in an accident you cause.
Likewise, with the average new car approaching $50,000, just $25,000 in property damage coverage may not cover the full replacement costs if you total another vehicle.
So, if you only buy the minimum amount of liability insurance and the other driver’s injuries or vehicle damage exceeds your policy limits, you’ll still be financially responsible. To protect your finances, consider increasing the coverage limits on your liability insurance policy.
You may also consider buying additional coverages for greater financial protection. We’ll go over these in the next section.

Optional car insurance coverage in Georgia

Georgia ranks in the top 10 states for car thefts, and nearly one out of every eight Georgia drivers is uninsured, according to the Insurance Research Council. If someone steals your car or you get into an accident with an uninsured driver, your liability insurance won’t protect you.
You can protect yourself and your vehicle by purchasing comprehensive insurance and uninsured motorist coverage.
The table below explains what these coverages and other optional coverages pay for.

Choosing to add optional coverage can often depend on cost, but there are ways to reduce insurance costs. Next, we’ll cover what you can expect to pay, on average, for car insurance in Georgia.

How Much Does Car Insurance Cost in Georgia?

The cost of car insurance in Georgia depends on various factors, only some of which are under your control. For example, your ZIP code, credit history, driving record, and coverage level can all affect your insurance rates.
The average cost of liability-only insurance — which provides only bodily injury and property damage coverage — is $115 per month in Georgia, according to our research. Full-coverage insurance — which includes both collision and comprehensive coverage on top of liability coverage — costs an average of $215 per month in the Peach State.
The following table features the seven cheapest car insurance companies in Georgia. The rates listed below are for drivers with clean records. Drivers with accidents, speeding tickets, DUI, or other traffic violations on their records can expect to pay higher premiums.

Georgia Farm Bureau has the cheapest average liability-only rates, at $48 per month, while COUNTRY Financial offers the cheapest full-coverage rates, at $97 per month.
Remember, these are average rates, which means you may or may not qualify for the rates listed above. But you can use several hacks to save money on your car insurance. You can start by shopping around and comparing quotes with different insurers to get the lowest rates for your situation.

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Georgia Auto Insurance FAQs

Sources

1. Office of Commissioner of Insurance and Safety Fire, “Auto Insurance,” Accessed February 29, 2024.

2. Georgia Department of Revenue, “Penalties and Fines for Lapse of Insurance Coverage, Registration Suspension and Reinstatement Process,” Accessed February 29, 2024.

3. Georgia Department of Revenue, “Georgia Electronic Insurance Compliance System,” Accessed February 29, 2024.

4. Georgia Department of Revenue, “Registration Suspension,” Accessed February 29, 2024.

5. Justia, “GA Code § 40-6-10 (2022),” Accessed February 29, 2024.

6. Ride Safe Georgia, “Understanding Georgia’s Diminished Value Law After a Car Accident,” Accessed February 29, 2024.

7. Rules and Regulations of the State of Georgia, “Subject 120-2-46 Automobile Self-Insurance Regulation,” Accessed February 29, 2024.

8. Ride Safe Georgia, “What is Joshua’s Law?,” Accessed February 29, 2024

9. Georgia Department of Driver Services, “Joshua's Law Requirements,” Accessed February 29, 2024

10. Insurance Research Council, “One in Eight Drivers Uninsured,” Accessed February 29, 2024

11. Insurance Information Institute, “Facts + Statistics: Auto theft,” Accessed February 29, 2024

12. CARCO, “FAQs,” Accessed March 1, 2024