Georgia car insurance: what the law requires and what drivers pay

Uninsured motorist coverage in Georgia: added on by default

The Insurance Research Council estimates that 19.0% of Georgia drivers were uninsured in 2023, above the national estimate of 15.4%. If one of them injures you, there is no liability policy to pay your bills. Uninsured motorist coverage steps in and pays as if the other driver had been insured.

Georgia's law (Code section 33-7-11) says an auto policy must include UM coverage at least equal to the liability minimums unless a named insured rejects it in writing. Georgia UM covers property damage as well as injuries. For the property damage part, you choose a deductible, and the lowest allowed is $250.

Georgia also lets you pick between two ways UM pays:

• Added-on coverage is the default. It pays in addition to whatever the at-fault driver's liability insurance pays.
• Reduced-by coverage pays only the difference between the at-fault driver's coverage and your own UM limit, so it pays less in most crashes.

For example, say your injury damages are $100,000, the at-fault driver carries $25,000 of liability coverage and you carry $50,000 of UM. With added-on coverage, you could collect $25,000 from the other driver's insurer and up to $50,000 from your own, $75,000 in all. With reduced-by coverage, your UM pays only the $25,000 gap between the two limits, so you collect $50,000 in all.

Because added-on coverage pays on top of the other driver's policy, it also helps when the at-fault driver has insurance that is too small. We could not confirm a separate underinsured motorist rule for Georgia from an official source, so ask your insurer how your policy treats underinsured drivers, or call the Georgia Office of the Commissioner of Insurance and Safety Fire.

How Georgia's costs compare with the national average

The NAIC publishes two averages. The average expenditure is what drivers actually spent per insured vehicle, including people who carry liability only. The combined average premium is the cost of a policy with liability, collision and comprehensive together, which is closer to what most people call full coverage.

Both Georgia figures are above the national averages. These are statewide averages, not quotes. Your own price depends on your ZIP code, driving record, age, car and, where allowed, credit-based insurance score. Comparing several insurers at renewal is a step any driver can take; see shopping at renewal. The location index ranks every state by cost.

How to switch insurers in Georgia without a lapse fine

Georgia tracks insurance electronically. Your insurer must report your policy to the Department of Revenue's motor vehicle database (fleet policies are the exception), so the state knows when coverage stops. The Department counts a lapse when there are 10 days or more between the end of the old policy and the start of the new one, or when a policy ends and no new one is reported.

A lapse on an actively registered vehicle brings a $25 fine, plus up to $160 more if that fine is not paid in time. The registration can be suspended, and driving with a suspended registration is a criminal offense that can lead to the car being impounded. To avoid that:

1. Start the new policy on the same day the old one ends, or earlier.
2. Ask the new insurer to confirm it has reported the policy to the state.
3. Check your status with the Department of Revenue's online insurance lookup.
4. If a car will sit unused, cancel its registration before you cancel its insurance.
5. Keep your cancellation and new policy documents until the state record shows the change.

Read more about the risks of a lapse in coverage.

Georgia claims: diminished value and bad-faith rules

Georgia is the main state where drivers may be able to claim diminished value, the drop in a car's resale value after a crash, from their own insurer. In State Farm v. Mabry, the Georgia Supreme Court treated a car's value, not just its physical condition, as the measure of the loss. Our diminished value guide explains how to document a claim.

Georgia law also pressures liability insurers to settle property damage claims fairly. An insurer that in bad faith fails to adjust such a claim can owe a penalty of up to 50% of its customer's liability or $5,000, whichever is greater, plus attorney's fees. Before suing, the claimant sends a certified demand, and the insurer gets 60 days to respond. See claim disputes for the wider process.

Georgia road safety numbers

IIHS counted 1,403 crash deaths in Georgia in 2024. Measured per person, Georgia's rate of 12.5 per 100,000 people was above the national 11.5 per 100,000 people. Measured per mile driven, it was 1.15 per 100 million miles, slightly below the US figure of 1.19 per 100 million miles. Speeding played a part in 24% of deaths (US: 29%), and 35% happened on rural roads (US: 41%). Crash data are only one input, but insurers set prices from expected claims.

Moving to Georgia

New residents have 30 days to apply for a Georgia driver's license and 30 days to transfer their vehicle registration. You need Georgia coverage in place before you register, because the county tag office relies on the insurer's electronic report. Our new residents guide walks through the order of steps. Coming from a neighboring state? Compare the rules in Florida, Alabama, Tennessee, South Carolina and North Carolina.