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Written byJ.J. Starr
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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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Table of contents
Georgia drivers pay an average of $191 per month for car insurance, according to Compare.com data. And those high car insurance costs make it tough to find cheap coverage — especially for people with poor driving records. Making matters worse, high-risk drivers often face rejection from standard insurers, leaving them with limited options.
When this happens, the Georgia Automobile Insurance Plan (GAAIP) steps in to help. It ensures that people with challenging driving histories can still meet Georgia’s minimum auto insurance requirements, as well as their lenders’.
This guide will help you understand how GAAIP works and how it can provide the coverage you need if you’re struggling to find affordable insurance in Georgia. We also share ways you can get lower auto insurance rates now and in the future.
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What Is the Georgia Automobile Insurance Plan?
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The GAAIP, established in 1949, ensures that even people with a poor driving history can meet Georgia’s mandatory insurance requirements. It provides car insurance to high-risk drivers who can’t get coverage through standard auto insurance companies. In other words, it’s last-resort coverage.
The purpose of the plan is to ensure all drivers in Georgia have access to the legally required minimum insurance coverage. The GAAIP assigns high-risk applicants (and backs them) with insurers operating in the state. Under the plan, insurers share the burden of covering high-risk drivers randomly assigned to them.
While the coverage is the same as what insurers offer in the voluntary market, premiums are typically higher due to the increased risk of covering high-risk drivers. Due to its high cost, you should look to it only as a last resort and switch to standard coverage when possible.
For more information, you can visit the AIPSO Georgia Plan Site.
GAAIP Eligibility Requirements
To be eligible for GAAIP, you must prove you can’t get insurance through the standard market. You can do this by showing that insurers have consistently denied you coverage within the last 60 days. You must also have a valid Georgia driver’s license and own a vehicle registered in the state to qualify.
The GAAIP is for high-risk drivers who may have difficulty finding coverage due to factors like a poor driving record or a history of accidents. But you can lose eligibility if you provide false information or fail to pay premiums on time — you must maintain continuous coverage under the plan to remain eligible.
When you improve you driving records to the extent that you can secure coverage through the standard market, you’ll no longer need to rely on coverage through GAAIP (and likely get cheaper coverage elsewhere).
What Coverages Are Available Under GAAIP?
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GAAIP offers essential coverages to meet the state’s minimum insurance requirements. But you can purchase optional coverage and increase your coverage limits if needed. Let’s review.
Mandatory coverage
Your GAAIP insurance must include the following to meet Georgia’s state minimum requirements:
Bodily injury liability: Covers injuries to others if you’re at fault in a car accident, with limits of $25,000 per person and $50,000 per accident.
Property damage liability: Covers damages to other people’s property, with a limit of $25,000 per accident.
You can increase your liability limits to 100/300/50.
Optional coverage
In addition to mandatory coverages, GAAIP offers optional coverages to help manage the financial impact of more serious incidents. These include:
Collision coverage: Pays for collision damage up to the market value of your vehicle minus the deductible. GAAIP offers deductibles between $100 and $1,000.
Comprehensive coverage: Pays for non-collision damage — such as from storms, animals, theft, and vandalism — up to the market value of your vehicle minus the deductible.
Uninsured/underinsured motorist coverage: Protects you up to your liability limits if a driver who doesn’t have adequate (or any) insurance hits you.
Medical Payments coverage: Pays medical expenses for you and your passengers, regardless of who’s at fault, with limits between $1,000 and $50,000.
How to Apply for the Georgia Automobile Insurance Plan
To apply for GAAIP coverage, you must work with an insurance agent licensed in Georgia to assist with the application. The agent will help you gather and report necessary information, such as your driver’s license, vehicle registration, and proof of previous insurance rejections or non-renewals within the last 60 days.
Make sure you have all the required documents to ensure a smooth application process. You may need digital copies of your documents to send to your agent. The application process involves verifying your eligibility and determining the appropriate coverage options for your needs.
It’s a good idea to decide beforehand whether you need state-minimum insurance or added coverage options such as uninsured motorist coverage. But your agent can also answer questions about your insurance policy and offer guidance regarding coverage options, limits, and deductibles.
In most cases, the state will assign your policy to an insurance company that will manage the policy going forward. But companies don’t guarantee coverage.
How Much Does a GAAIP Policy Cost?
The cost of a GAAIP policy varies by insurer, but premiums are generally higher due to the high-risk nature of the drivers they cover. These drivers’ past driving behaviors indicate a higher risk of making an at-fault claim. So, high-risk policyholders should expect to pay more than they would for standard auto insurance.
Because GAAIP rates are expensive, switching to traditional insurance once you’re no longer considered high-risk usually saves you money.
How High-Risk Drivers Can Save on Auto Insurance
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Your driving history heavily influences your auto insurance rate, which is why rates are so expensive for high-risk drivers. But you can always find ways to manage costs while meeting state-minimum insurance requirements.
Here are some tips:
Increase your deductible: A higher deductible lowers your monthly premium; just ensure you can afford the extra out-of-pocket expense if you get into an accident.
Consider liability-only coverage: If you have an older or low-market-value vehicle you can afford to replace, opting for liability-only coverage can significantly reduce costs.
Improve your driving record: Focus on maintaining a clean driving history by avoiding accidents and traffic violations to lower your risk profile over time.
Improve your credit: In many states, including Georgia, insurers consider your credit history when determining car insurance rates, so improving it can lead to lower premiums.
Shop around and compare quotes from multiple companies: Insurers assess your risk differently, so compare car insurance companies to uncover the best deal.
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Georgia Automobile Insurance Plan FAQs
You likely have some questions if you’re exploring the Georgia Automobile Insurance Plan. Here are the answers to the most common questions asked about GAAIP.
How long will GAAIP cover you?
The GAAIP typically provides coverage for up to three years, but you purchase it in standard six-month terms.
How long do insurers consider you a high-risk driver in Georgia?
It depends on the insurance company, but most companies have a three-to-five-year lookback period. The longer it’s been since your last incident, the lower your risk.
What’s the cheapest car insurance in Georgia?
Liability coverage is the cheapest insurance you can buy, and Georgia drivers pay an average monthly rate of $144 for liability coverage, according to Compare.com data. But we found that Georgia drivers can find cheaper rates with certain insurers. For example, Auto-Owners offers an average monthly rate of $81. But that doesn’t mean it will be the cheapest company for you since rates depend on a number of factors, including your driving history, location, coverage needs, and more.
Why is Georgia car insurance so expensive?
Car insurance in Georgia costs more than the national average, likely due to the state’s higher population density. Georgia also holds the fifth-highest rank in the nation for financial losses, according to the Insurance Information Institute (Triple-I), reflecting the significant amount insurers pay out in claims.
Data Methodology:
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Sources:
Office of the Commissioner of Insurance and Safety Fire, “Insurance Resources,” accessed September 10, 2024.
AIPSO, “Georgia Automobile Insurance Plan” accessed September 10, 2024.
AIPSO, Georgia Automobile Insurance Plan Alternate Application Report Form,” accessed September 10, 2024.
Insurance Information Institute, “A Firm Foundation: How Insurance Supports the Economy,” accessed September 10, 2024.
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J.J. StarrInsurance Writer
J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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