Georgia Auto Insurance Law
Georgia’s compulsory auto liability law (O.C.G.A. §§ 33-34-3, 33-34-4)
Georgia is an at-fault state. A driver who negligently causes an accident is liable for the injuries and damage, and the injured person recovers from that driver, usually through the driver’s liability insurer. Georgia’s auto insurance law makes sure there is insurance behind that liability, protects drivers when the other driver has none, and keeps a market open for drivers the voluntary market turns away.
The core rule is one sentence. No owner of a motor vehicle that must be registered in Georgia, and no other person, may operate the vehicle or let anyone else operate it unless the owner has motor vehicle liability insurance equivalent to the security required under Chapter 9 of Title 40, the Motor Vehicle Safety Responsibility Act (O.C.G.A. § 33-34-4). A self-insurer is the only exception the section names.
What the law requires is liability insurance, which pays others when the insured is legally responsible. Coverage that pays the insured’s own medical bills regardless of fault is optional in Georgia. Required liability coverage plus optional first-party coverage is what makes Georgia a fault-based state rather than a no-fault state.
Georgia’s minimum limits (O.C.G.A. §§ 40-9-37(a), 33-7-11(a)(1)(A))
Section 33-34-4 prints no dollar amounts. A liability policy counts as security under Title 40 only if its limits are “not less than the amounts specified in subparagraph (a)(1)(A) of Code Section 33-7-11” (O.C.G.A. § 40-9-37(a)), and that subparagraph sets them:
| Coverage | Georgia minimum |
|---|---|
| Bodily injury to or death of one person in any one accident | $25,000 |
| Bodily injury to or death of two or more persons in any one accident, subject to the per-person limit | $50,000 |
| Injury to or destruction of property in any one accident | $25,000 |
Georgia’s minimum is therefore 25/50/25 (O.C.G.A. § 33-7-11(a)(1)(A)). The same three figures define “proof of financial responsibility” (O.C.G.A. § 40-9-2(5)), set the minimum uninsured motorist limits, and measure when an unpaid accident judgment is treated as satisfied (O.C.G.A. § 40-9-62(b)). Learn them once and you will recognize them in each place.
Remember how the per-person limit sits inside the per-accident limit. If a driver with minimum limits injures three people, no one of them can collect more than $25,000 from the bodily injury coverage, and all three together cannot collect more than $50,000. Anything above that is the driver’s personal liability.
Higher minimums after a DUI conviction (O.C.G.A. § 33-7-16)
A driver convicted of driving under the influence (at a blood alcohol concentration of 0.08 grams or higher, or of drugs or other intoxicating substances) may not operate any motor vehicle in Georgia without higher liability limits: 50/100/50 after a first conviction and 100/300/100 after a second or later one (O.C.G.A. § 33-7-16(a), (b)). The driver must keep that coverage without interruption for three years from the conviction, and it replaces the ordinary minimum for that driver (O.C.G.A. § 33-7-16(c), (d)). A guilty plea or a plea of nolo contendere counts as a conviction (O.C.G.A. § 33-7-16(e)). For a client with a DUI conviction, 25/50/25 is not the minimum.
What every Georgia auto liability policy must contain (O.C.G.A. §§ 33-34-3, 33-34-7)
Georgia writes several terms into every auto liability policy issued in the state. If a policy leaves one out, the law supplies it.
- A six-month minimum term. Every policy must contain at least the minimum coverages and be issued for a minimum term of six months (O.C.G.A. § 33-34-3(a)(1)).
- A conformity clause. A policy meant to satisfy § 33-34-4 must state that its coverage is at least as extensive as the minimum required, notwithstanding its other terms (O.C.G.A. § 33-34-3(c)).
- Georgia limits for out-of-state insureds. An insurer authorized in Georgia, or affiliated with one, that writes auto liability policies in any state or Canadian province must provide at least Georgia’s minimum coverage when an insured motorist has an accident in Georgia (O.C.G.A. § 33-34-3(a)(2)).
- Advance payment on new personal auto policies. No insurer may issue a personal auto liability policy without requiring advance payment for the first 30 days of coverage. Renewals, replacements with no lapse and payroll-deduction plans are excepted, and if the payment check is not honored the insurer may cancel for nonpayment under § 33-24-44 (O.C.G.A. § 33-34-3(a)(4)).
- Dealer vehicles. When someone who is neither the owner nor the owner’s employee drives a car dealer’s vehicle and is insured under another complying policy, the driver’s own policy is primary and the dealer’s is excess (O.C.G.A. § 33-34-3(d)). On a test drive, the customer’s policy pays first.
- Third-party notice. If the insured has not given notice of a claim within 30 days of the accident, an injured third party may give it, by mail (O.C.G.A. § 33-34-3(e)).
- Spouse continuation. When the named insured on a personal auto policy dies or the marriage ends, a spouse who was covered stays covered, upon notice to the insurer or agent, for 90 days or until the policy expires, whichever is shorter (O.C.G.A. § 33-34-7). The 90 days give the surviving or former spouse time to buy a policy in his or her own name.
Medical payments and optional coverages (O.C.G.A. §§ 33-34-2(1), 33-34-3.1)
Medical payments coverage reimburses the insured and others for reasonable and necessary medical and funeral expenses caused by a motor vehicle accident, without regard to the insured’s liability. It is available to the named insured, a resident spouse and resident relatives while occupying the covered vehicle, and to anyone else legally occupying it, for services rendered within three years of the accident (O.C.G.A. § 33-34-2(1)).
Insurers writing private passenger auto insurance must file rates and forms for medical payments coverage at a limit of at least $2,000, but the statute says this is not a requirement to offer or quote the coverage (O.C.G.A. § 33-34-3.1(a)). Insurers may also make collision, comprehensive and loss of use coverages available separately, with differing deductibles, at the policyholder’s request (O.C.G.A. § 33-34-3.1(b)).
Proof of insurance (O.C.G.A. § 40-6-10)
The owner or operator must keep proof of the required coverage in the vehicle whenever it is driven, and the owner must give any operator that proof. Proof may be on paper or electronic, including an image on a phone (O.C.G.A. § 40-6-10(a)(1.2)). Temporary proof includes a written binder, for a policy applied for within the last 30 days, valid for no more than 30 days from issue; a signed rental agreement; and, for a vehicle acquired within the past 30 days and covered under the policy on another vehicle, that policy’s declarations with proof of the acquisition date (O.C.G.A. § 40-6-10(a)(2)).
The state’s records usually settle the question. The in-vehicle requirement does not apply to a vehicle the Department of Revenue’s records show as currently insured (O.C.G.A. § 40-6-10(a)(3)), and those records are prima facie evidence of coverage (O.C.G.A. § 40-6-10(d)). For an ordinary non-fleet policy, the insurer’s policy information card must be kept in the vehicle, but the card alone is not sufficient proof except as the section provides (O.C.G.A. § 40-6-10(a)(8)(B)). Officers must check coverage at every stop (O.C.G.A. § 40-6-10(a)(5)).
Failing to keep proof is a misdemeanor punishable by a fine of not less than $200 nor more than $1,000, imprisonment for up to 12 months, or both (O.C.G.A. § 40-6-10(a)(4)). A driver who shows the court that coverage was in effect may be fined no more than $25, and no license suspension follows (O.C.G.A. § 40-6-10(a)(7)). Knowingly operating, or letting someone operate, a vehicle with no insurance is a separate misdemeanor with the same penalty range (O.C.G.A. § 40-6-10(b)). The law separates the insured driver who could not prove it from the driver who had no insurance at all.
Financial responsibility law: the Motor Vehicle Safety Responsibility Act (O.C.G.A. §§ 40-9-1 through 40-9-82)
Georgia’s financial responsibility law works after an accident. It uses the driver’s license as leverage against a driver who is in an accident, or loses a lawsuit, and cannot show the ability to pay. The Department of Driver Services administers it (O.C.G.A. § 40-9-2(2), (3)).
- An accident is a collision or other involvement of a motor vehicle in which someone is killed or injured or any one person’s property is damaged to an extent of $500 or more (O.C.G.A. § 40-9-2(1)).
- Proof of financial responsibility is proof of ability to pay damages for later accidents in the 25/50/25 amounts (O.C.G.A. § 40-9-2(5)).
Security after an accident (O.C.G.A. §§ 40-9-32 through 40-9-37)
When a person claims under oath to have been damaged in an accident and asks for a determination of security, the Department, not less than 30 days after receiving the report, sets an amount of security sufficient to cover any judgment against each operator and owner. It will not act on a claim received more than six months after the accident (O.C.G.A. § 40-9-32(a)). Each person is notified that the license will be suspended on the thirtieth day after the notice is mailed unless the person deposits the security and gives proof of financial responsibility for the future (O.C.G.A. § 40-9-32(b)). A written request for a hearing within ten days stays the suspension; a person found to have no reasonable possibility of a judgment against him or her need not deposit security (O.C.G.A. § 40-9-32(c)(1)). A suspension lasts until security and future proof are given, until one year passes with no suit filed, or until a release or adjudication of nonliability is filed (O.C.G.A. § 40-9-33(b)).
Insurance is the main exemption. Security is not required if the owner had an auto liability policy on the vehicle at the time, unless it was being driven without the owner’s permission (O.C.G.A. § 40-9-34(1)). Other exemptions include a non-owner driver covered by his or her own policy, a self-insurer, an accident causing no injury or damage to others, and a legally parked vehicle (O.C.G.A. § 40-9-34(2)-(6)). The policy must generally be issued by an insurer authorized in Georgia and must carry at least 25/50/25 limits (O.C.G.A. § 40-9-37(a)).
Unsatisfied judgments (O.C.G.A. §§ 40-9-60 through 40-9-62)
If a person fails within 30 days to satisfy a judgment arising from a motor vehicle accident, the court, at the creditor’s request, sends it to the Department (O.C.G.A. § 40-9-60(a)), which suspends the debtor’s license (O.C.G.A. § 40-9-61(a)). The Department takes no action if an insurer was obligated to pay the judgment (O.C.G.A. § 40-9-61(c)); the remedy targets uninsured debtors. The suspension lasts until the judgment is satisfied, and for this purpose a judgment is treated as satisfied once $25,000 has been credited for bodily injury to one person, $50,000 for two or more persons, or $25,000 for property damage, from one accident (O.C.G.A. § 40-9-62(a), (b)).
Proof of financial responsibility for the future (O.C.G.A. §§ 40-9-80 through 40-9-82)
Future proof is given by filing with the Department an insurer’s written certificate that a complying liability policy is in effect, or a self-insurance plan accepted under § 33-34-5.1, and it must be maintained for one year (O.C.G.A. § 40-9-80). The same proof is required before restoring a license suspended after a conviction that requires mandatory suspension, and the license is revoked if the proof lapses during the year after restoration (O.C.G.A. § 40-9-81). An insurer that files the certificate may not cancel it within 12 months of its effective date, except for a later conviction requiring mandatory suspension, and must give the Department at least 20 days’ prior written notice of cancellation (O.C.G.A. § 40-9-82).
Uninsured motorists coverage (O.C.G.A. § 33-7-11)
Compulsory insurance does not guarantee that every driver is insured, and an insured driver may carry only the minimum. Uninsured motorist (UM) coverage lets your client recover from the client’s own insurer what the at-fault driver should have paid. Both exam questions and real claims turn on the statute’s exact words.
The coverage every policy includes unless rejected (O.C.G.A. § 33-7-11(a)(1), (a)(3))
No auto liability policy may be issued or delivered in Georgia to a vehicle’s owner, or by a Georgia-licensed insurer on a vehicle principally garaged or used in Georgia, unless it undertakes to pay the insured damages for bodily injury, loss of consortium or death of an insured, or for injury to or destruction of the insured’s property, sustained from the owner or operator of an uninsured motor vehicle (O.C.G.A. § 33-7-11(a)(1)). Georgia UM coverage therefore has a bodily injury part and a property damage part.
The coverage does not apply “where any insured named in the policy shall reject the coverage in writing” (O.C.G.A. § 33-7-11(a)(3)). Three features of that sentence matter:
- Any named insured may reject; when a policy names two spouses, either one’s rejection is enough.
- The rejection must be in writing. Without one, the policy includes UM coverage.
- A rejection carries forward to renewals of a policy issued by the same insurer (O.C.G.A. § 33-7-11(a)(3)). It does not carry over to a policy from a different insurer.
The two limit options (O.C.G.A. § 33-7-11(a)(1)(A), (B))
UM limits are set “at the option of the insured” and must be either:
- Not less than the minimum, $25,000 for one person, $50,000 for two or more persons and $25,000 for property, the same 25/50/25 as the liability minimum (O.C.G.A. § 33-7-11(a)(1)(A)); or
- Equal to the policy’s own liability limits, if those exceed the minimum (O.C.G.A. § 33-7-11(a)(1)(B)).
The subsection adds: “In any event, the insured may affirmatively choose uninsured motorist limits in an amount less than the limits of liability” (O.C.G.A. § 33-7-11(a)(1)(B)). Read together, the policy’s liability limits are the starting point for UM limits, and a lower UM limit applies only if the insured affirmatively chooses it. The choice belongs to the insured, not the insurer, and its floor is 25/50/25. A client with 100/300/100 liability limits who makes no choice about UM limits should expect UM limits to match. Once coverage is issued, the insurer need not increase the UM amount shown on the declarations page at renewal (O.C.G.A. § 33-7-11(a)(3)), so review UM limits whenever a client raises liability limits.
Who is an insured (O.C.G.A. § 33-7-11(b)(1)(B), (C))
For UM purposes, an insured is the named insured; the named insured’s spouse and the relatives of either, while residents of the same household, “while in a motor vehicle or otherwise”; anyone using the insured vehicle with the named insured’s express or implied consent; a guest in the insured vehicle; the personal representatives of any of these; and a foster child or ward placed in the household by court order, guardianship or the state (O.C.G.A. § 33-7-11(b)(1)(B)). “Or otherwise” means the named insured, resident family members and a foster child or ward are covered as pedestrians, cyclists or passengers in someone else’s car; permissive users and guests are insureds only in connection with the insured vehicle.
Property of the insured means the insured vehicle and the insured’s personal property in it (O.C.G.A. § 33-7-11(b)(1)(C)), not the insured’s house or fence.
What makes a vehicle “uninsured” (O.C.G.A. § 33-7-11(b)(1)(D), (b)(2))
An uninsured motor vehicle is one, other than a vehicle owned by or furnished for the regular use of the named insured, the spouse or a resident relative, that has (O.C.G.A. § 33-7-11(b)(1)(D)):
- no bodily injury and property damage liability insurance;
- liability insurance, where the insured has UM coverage, to the extent explained in the next section;
- liability insurance whose insurer has legally denied coverage;
- liability insurance whose insurer is insolvent (if it makes a partial payment, the vehicle is uninsured only for the difference between that payment and the UM limits); or
- no bond or deposit in place of liability insurance.
The second category is how Georgia handles underinsured motorists. There is no separate underinsured motorist statute; an underinsured vehicle is an “uninsured motor vehicle” for UM purposes. A vehicle is also uninsured if its owner or operator is unknown (O.C.G.A. § 33-7-11(b)(2)). The household-vehicle exclusion keeps a family from leaving a second car uninsured and collecting UM benefits when someone is hurt in it.
Added-on and reduced-by coverage: the default (O.C.G.A. § 33-7-11(b)(1)(D)(ii))
When the at-fault driver has some liability insurance, Georgia offers two ways for UM coverage to fit with it.
Added-on coverage is the default. The at-fault vehicle is treated as uninsured “to the full extent of the limits of the uninsured motorist coverage,” and the UM coverage applies in addition to the at-fault driver’s available liability coverage. UM coverage may not duplicate the liability payments, and the insured’s combined recovery from both may not exceed the sum of the insured’s economic and noneconomic losses (O.C.G.A. § 33-7-11(b)(1)(D)(ii)(I)).
Reduced-by coverage requires a written selection. An insured “may reject the coverage referenced in subdivision (I) of this division and select in writing” coverage that treats the at-fault vehicle as uninsured only for the difference between the at-fault driver’s available liability coverage and the insured’s UM limits (O.C.G.A. § 33-7-11(b)(1)(D)(ii)(II)). It costs less because it pays less.
In both forms, available coverage means the at-fault driver’s limits less any amounts by which they have been reduced by paying other claims or otherwise. Once an insured has rejected added-on coverage and selected reduced-by on a policy, the same insurer need not provide added-on coverage on renewal, and neither form applies if UM coverage has been rejected entirely (O.C.G.A. § 33-7-11(b)(1)(D)(ii)(III)).
Compare the two using a hypothetical claim: your client has UM limits of $100,000 per person, and the at-fault driver carries the $25,000 per-person minimum, none of it yet paid to anyone else.
| Your client’s losses (example) | Added-on (default) | Reduced-by (selected in writing) |
|---|---|---|
| $150,000 | Liability pays $25,000; UM pays up to $100,000 more; total $125,000 | Liability pays $25,000; UM pays the $75,000 difference; total $100,000 |
| $80,000 | Liability pays $25,000; UM pays $55,000; total $80,000, capped at losses | Liability pays $25,000; UM pays $55,000; total $80,000 |
With large losses, added-on coverage stacks the full UM limit on top of the at-fault driver’s insurance. With smaller losses, the two forms can pay the same, because neither lets the insured recover more than the actual losses.
Deductibles and other coverage (O.C.G.A. § 33-7-11(a)(2), (a)(3), (i))
UM bodily injury and property damage coverages may each carry a deductible of $250, $500 or $1,000, at the option of any named insured, available at a reduced premium. Higher deductibles need the Commissioner’s approval, and no UM deductible may go below $250 (O.C.G.A. § 33-7-11(a)(2)).
UM coverage is not meant to pay twice for one loss. The endorsement may exclude property damage the insured has been compensated for by other property or physical damage insurance, such as the insured’s own collision coverage, and bodily injury compensated by medical payments coverage or workers’ compensation (O.C.G.A. § 33-7-11(i)). Umbrella and excess liability policies are outside the UM requirement unless they or an endorsement affirmatively provide UM coverage (O.C.G.A. § 33-7-11(a)(3)), so a client’s umbrella does not automatically add UM protection.
Hit-and-run and unknown drivers (O.C.G.A. § 33-7-11(b)(2), (c))
To recover when the owner or operator is unknown, there must have been actual physical contact between the unknown vehicle and the insured’s person or property, unless the claimant’s account is corroborated by an eyewitness other than the claimant (O.C.G.A. § 33-7-11(b)(2)). The accident must also be reported as § 40-6-273 requires (O.C.G.A. § 33-7-11(c)): a driver in an accident causing injury, death or apparent property damage of $500 or more must immediately notify the local police, or outside a city the sheriff or nearest state patrol office (O.C.G.A. § 40-6-273). A client forced off the road by a car that never touches her, with no witness, cannot meet the test; a passing driver who confirms her account changes the answer.
Making a UM claim (O.C.G.A. § 33-7-11(a)(4), (d)-(g))
A Georgia UM claim is tied to the tort suit against the at-fault driver. When the at-fault driver is sued and there is reason to believe the vehicle is uninsured, the suit and pleadings are served on the UM insurer as though it were a named defendant. If that belief arises after suit is filed, the insurer must be served within the remaining time for serving the defendant or within 90 days after the plaintiff discovered, or should have discovered, the facts, whichever is greater, and the insurer may take discovery for at least 120 days before any hearing on the merits (O.C.G.A. § 33-7-11(d)). An unknown driver is sued as “John Doe,” and the UM insurer may defend in John Doe’s name or its own (O.C.G.A. § 33-7-11(d)). If a known driver has left the state or is hiding, the court may allow service by publication, the UM insurer is served as a party, and the plaintiff must keep trying to locate the driver for up to 12 months (O.C.G.A. § 33-7-11(e)). When the at-fault driver’s insurer is insolvent, the insured must notify the UM insurer of any legal proceeding against the insolvent company within a reasonable time and before negotiating with that company (O.C.G.A. § 33-7-11(h)).
The endorsement may not require arbitration, may not require anything of the insured beyond establishing the uninsured motorist’s legal liability (subject to the policy’s other provisions), and may not restrict the insured from hiring a lawyer or suing (O.C.G.A. § 33-7-11(g)). An insurer that pays is subrogated to the insured’s rights against the person who caused the loss (O.C.G.A. § 33-7-11(f)). The uninsured motorist’s bankruptcy does not defeat the insured’s UM claim (O.C.G.A. § 33-7-11(a)(4)).
If a UM insurer refuses to pay a covered loss within 60 days after the insured’s demand, and the refusal is found to be in bad faith, the insurer owes, on top of the UM recovery, a penalty of not more than 25 percent of the recovery or $25,000, whichever is greater, plus reasonable attorney’s fees. That is decided in a separate action after judgment against the uninsured motorist in the tort case (O.C.G.A. § 33-7-11(j)).
Insurers must also give insureds whose policies include UM coverage an informational notice in language the rule prescribes, with signed confirmation kept when the applicant applies in person; the notice states that it does not change or replace the policy wording (Ga. Comp. R. & Regs. r. 120-2-28-.06(2), (3)). The coverage the client has is set by the policy and the written rejection or selection forms, so make sure those forms record what the client chose.
Georgia Automobile Insurance Plan: assigned risk (O.C.G.A. § 40-9-100; Ga. Comp. R. & Regs. r. 120-2-14)
Compulsory insurance only works if drivers can buy it. The Georgia Automobile Insurance Plan is the state’s assigned risk plan for drivers the voluntary market turns down.
The Commissioner of Insurance must approve a plan for the equitable apportionment among auto insurers of applicants “who are in good faith entitled to but are unable to procure such policies through ordinary methods,” and every auto insurer must participate (O.C.G.A. § 40-9-100(a)). Under the rule, the Plan makes auto insurance, including garage liability, available to those applicants and issues private passenger and commercial auto policies in its own name; Plan policies are treated as issued by an authorized insurer and serve as proof of financial responsibility (Ga. Comp. R. & Regs. r. 120-2-14-.02). The Plan must always offer at least Georgia’s required minimum coverage (Ga. Comp. R. & Regs. r. 120-2-14-.06).
Eligibility. A person who has committed no traffic offenses and had no claims based on fault against an insurer for the prior three years is not eligible, unless the application or its investigation shows why the person could not get a policy through ordinary methods (O.C.G.A. § 40-9-100(c)). The Plan is a last resort for drivers who need it, not a cheaper alternative for good drivers: because eligibility turns on being unable to buy coverage through ordinary methods, the voluntary market comes first.
Sharing the cost. Premiums, losses and expenses are apportioned among all subscribing insurers in proportion to each one’s share of Georgia auto liability insurance written (Ga. Comp. R. & Regs. r. 120-2-14-.06(1)), and full participation is a condition of an insurer’s authority to do business in Georgia (Ga. Comp. R. & Regs. r. 120-2-14-.07(3)). A Governing Committee and a Manager administer the Plan (Ga. Comp. R. & Regs. r. 120-2-14-.04(1)).
Uniform terms. Plan risks are written at the rules, rates and classifications filed for the subscribers by the Automobile Insurance Plans Service Office, on its standard policy or an approved equivalent (Ga. Comp. R. & Regs. r. 120-2-14-.09(1)-(3)). When a Plan risk moves to the voluntary market, the Plan policy is cancelled pro rata (Ga. Comp. R. & Regs. r. 120-2-14-.09(5)).
Producer commissions. Unless other arrangements are made with the Commissioner, the producer the insured designates earns 5 percent of the premium on long-haul trucking risks and public passenger vehicles other than church and school buses, and 10 percent on other risks. The producer may not charge the applicant a service charge for completing a Plan application (Ga. Comp. R. & Regs. r. 120-2-14-.13).
Appeals. An applicant, insured or insurer may appeal a ruling of the Plan’s manager or committee to the Commissioner, and a person aggrieved by the Commissioner’s order may petition the superior court of the county of residence within ten days after notice of it (O.C.G.A. § 40-9-100(b)). Every Plan notice of cancellation or denial must state the right to appeal to the Committee (Ga. Comp. R. & Regs. r. 120-2-14-.08(1)). An appeal does not stay a cancellation, but if the Committee or Commissioner refuses to sustain it, the insurer must issue a new one-year policy or binder within two working days after receiving the deposit premium, which must arrive within 30 days after the appeal is decided (Ga. Comp. R. & Regs. r. 120-2-14-.08(3)).
Premium reductions and underwriting limits for private passenger auto
Defensive driving (O.C.G.A. § 33-9-42)
For each personal or family-type private passenger auto policy, the insurer must offer a reduction of not less than 10 percent in the premiums for liability, first-party medical and collision coverages if all named drivers of each covered vehicle qualify (O.C.G.A. § 33-9-42(a)). Every named driver, of any age, must have no traffic offenses for the prior three years (or since licensure, if shorter) and no claims based on fault against an insurer for the prior three years, and must complete a course:
- Drivers 25 or older: a defensive driving course of not less than six hours from a driver improvement clinic or driving school approved by the Department of Driver Services, from a nonprofit program such as the AARP, the American Automobile Association or the National Safety Council, or from an employer meeting the Department’s rules; or an emergency vehicles operations course at the Georgia Public Safety Training Center (O.C.G.A. § 33-9-42(b)).
- Drivers under 25: a new-driver course of not less than 30 hours of classroom training and not less than six hours of practical training from an approved driver’s training school or an accredited secondary school, junior college or college (O.C.G.A. § 33-9-42(c)).
Eligibility lasts three years, as long as no named driver commits a traffic offense or has an at-fault claim against the policy (O.C.G.A. § 33-9-42(d)), and an insurer may give the reduction to drivers who do not meet every requirement (O.C.G.A. § 33-9-42(h)). Note that the law requires the insurer to offer the discount, the driver must earn it, and the required reduction covers liability, first-party medical and collision premiums, not comprehensive.
Good student discount (O.C.G.A. § 33-9-43)
Insurers must also offer a reduction on the same three coverages for each named driver under 25 who is unmarried, a full-time student in high school, college or a vocational-technical school, and an honor student: in the upper 20 percent of the class, with a “B” or 3.0 average or better, or on the dean’s list or honor roll for the preceding term (O.C.G.A. § 33-9-43(a)). An insurer need not offer it to a driver who, within three years before the policy year, was found at fault in an accident; was convicted of, or pleaded nolo contendere to, a serious traffic offense, a traffic offense carrying three or more points, or a felony or drug offense; or had a license suspended for refusing a chemical test (O.C.G.A. § 33-9-43(c)). A driver who qualifies for this and other statutory reductions receives all of them (Ga. Comp. R. & Regs. r. 120-2-28-.09(1)(b)).
What may not count against the insured (O.C.G.A. §§ 33-9-40, 40-8-76.1(d)(2); Ga. Comp. R. & Regs. r. 120-2-65)
No insurer may surcharge or cancel an auto policy because the insured was in a multivehicle accident in which the insured was not at fault (O.C.G.A. § 33-9-40). An occupant’s failure to wear a seat belt may not be a basis for cancelling coverage or raising a rate (O.C.G.A. § 40-8-76.1(d)(2)).
Georgia’s rules also bar insurers, brokers and agents from private passenger auto underwriting that places risks in a “fictitious group” (Ga. Comp. R. & Regs. r. 120-2-65-.03(1)). Grouping occurs when acceptability turns on criteria such as marital status, time at an address, occupation, credit history, number of vehicles, renting rather than owning a home, education, failure to buy non-compulsory coverages or higher limits, a past period without a policy when none was needed or with a residual market insurer, or military service (Ga. Comp. R. & Regs. r. 120-2-65-.03(2)). These criteria are not banned outright: such a grouping is fictitious and unfairly discriminatory if it is not actuarially supported, not relevant to risk and not a reasonable consideration allowed under § 33-9-4(7), and any grouping based on race, creed or ethnic extraction is prohibited (Ga. Comp. R. & Regs. r. 120-2-65-.03(3)). Insurers must give their agents their underwriting guidelines and produce them to the Commissioner within 20 days of a request (Ga. Comp. R. & Regs. r. 120-2-65-.04, -.05).
Georgia’s at-fault tort system and auto claims
Because Georgia is a fault state, nearly every injury claim between drivers is a negligence claim underneath. These rules decide how much an injured person recovers, how long the person has to sue and how the liability insurer must respond.
Comparative fault and apportionment (O.C.G.A. § 51-12-33)
Georgia uses modified comparative negligence with a 50 percent bar. A partly responsible plaintiff’s damages are reduced in proportion to the plaintiff’s percentage of fault (O.C.G.A. § 51-12-33(a)), and a plaintiff 50 percent or more responsible recovers nothing (O.C.G.A. § 51-12-33(g)). Damages are then apportioned among the liable persons by percentage of fault; each pays only its own share, with no joint liability and no right of contribution (O.C.G.A. § 51-12-33(b)). The jury considers the fault of everyone who contributed, including nonparties (O.C.G.A. § 51-12-33(c)); a nonparty’s fault is considered if the plaintiff settled with it or a defendant gives notice at least 120 days before trial (O.C.G.A. § 51-12-33(d)(1)).
For example, suppose a jury finds a driver’s damages are $100,000 and assigns her 20 percent of the fault for speeding and 80 percent to the driver who ran a stop sign. She recovers $80,000. At 50 percent fault she would recover nothing. Because a liability policy answers only for its insured’s share, and a serious accident can easily exceed 25/50/25, recommend limits well above the minimum.
The failure of an occupant to wear an available seat belt may be considered in any civil action as evidence on negligence, comparative negligence, causation, assumption of risk or apportionment of fault, and may be used to reduce recovery, subject to the court’s rulings on admissibility (O.C.G.A. § 40-8-76.1(d)(1)).
Time limits for suits (O.C.G.A. §§ 9-3-33, 9-3-31)
An action for injury to the person must be brought within two years after it accrues, and one involving loss of consortium within four years (O.C.G.A. § 9-3-33). An action for injury to personal property, such as a damaged vehicle, must be brought within four years (O.C.G.A. § 9-3-31). Because a UM claim depends on establishing the uninsured motorist’s liability, the tort deadline matters to the UM claim too.
Pre-suit settlement offers (O.C.G.A. § 9-11-67.1)
A liability insurer that fails to accept a reasonable offer within limits can expose its insured to a judgment above those limits, so Georgia regulates settlement offers in motor vehicle injury cases. Before the defendants answer a lawsuit, an offer prepared with a lawyer’s help must be in writing and give the recipient at least 30 days from receipt to accept, set a payment date at least 40 days from receipt, identify the parties, releases and claims, and, unless waived, require a sworn statement disclosing the recipient’s applicable insurance; it must include records sufficient to evaluate the claim and be sent by certified mail or statutory overnight delivery (O.C.G.A. § 9-11-67.1(b), (g)). A written request for clarification is not a counteroffer (O.C.G.A. § 9-11-67.1(f)).
The statute gives the insurer a safe harbor. There is no civil action for failing to settle if, by the offer’s dates, the recipient accepts all material terms except the amount, provides any required sworn statement about insurance, and pays the lesser of the amount demanded or the available bodily injury limits (O.C.G.A. § 9-11-67.1(i)(1)).
Suit papers, cooperation and first-party claims (O.C.G.A. §§ 40-9-103, 33-34-6, 33-34-9)
Every Georgia auto liability policy must require the insured to send the insurer every summons or other process as soon as practicable and to cooperate in the defense (O.C.G.A. § 40-9-103(a)). Failing to do so relieves the insurer of its duties to defend and pay only if it prejudices the insurer (O.C.G.A. § 40-9-103(b)(1)). And the insurer may not deny coverage on that ground if the injured party sends the suit papers to the insurer or its agent by certified mail or statutory overnight delivery within ten days after filing them; a party who does not know the insurer has 30 days after learning who it is, and the papers must arrive at least 30 days before any judgment (O.C.G.A. § 40-9-103(c)). An insurer that denies coverage and is later found to owe it is liable for the insured’s legal costs and attorney’s fees as the court awards (O.C.G.A. § 40-9-103(b)(2)).
On a client’s own claim, an insurer may not tell the client that using or not using a particular repair shop may lead to nonpayment, or require a particular shop if the client can get the work done elsewhere at the same cost (O.C.G.A. § 33-34-6). On a total loss with more than one lien, the proceeds pay the senior lienholder in full first (O.C.G.A. § 33-34-9(a)).
Lesson summary
- Every owner must carry auto liability insurance equivalent to the security required under Title 40, Chapter 9, with minimum limits of 25/50/25 (O.C.G.A. §§ 33-34-4, 40-9-37(a), 33-7-11(a)(1)(A)). After a DUI conviction the minimum is 50/100/50, or 100/300/100 after a second or later conviction, for three years (O.C.G.A. § 33-7-16).
- Georgia policies carry a six-month minimum term, Georgia limits for out-of-state insureds, 30 days’ advance payment on new personal policies, primary coverage for the driver’s own policy on dealer vehicles, a third-party notice right after 30 days and 90 days’ continuation for a spouse (O.C.G.A. §§ 33-34-3, 33-34-7). Medical payments coverage is optional (O.C.G.A. § 33-34-3.1).
- Drivers keep proof of insurance in the vehicle unless state records show coverage; knowingly driving uninsured is a separate misdemeanor (O.C.G.A. § 40-6-10). The Safety Responsibility Act suspends uninsured drivers who do not post security or pay accident judgments, and future proof is kept for one year (O.C.G.A. §§ 40-9-32, 40-9-61, 40-9-80).
- UM coverage is in every policy unless any named insured rejects it in writing. Limits are at least 25/50/25 or equal to the liability limits, and lower limits require the insured’s affirmative choice (O.C.G.A. § 33-7-11(a)).
- Added-on UM is the default; reduced-by applies only if selected in writing. Recovery may not exceed the insured’s losses, and UM may exclude amounts paid by other property insurance, medical payments or workers’ compensation (O.C.G.A. § 33-7-11(b)(1)(D)(ii), (i)).
- Unknown-driver claims need physical contact or an independent eyewitness and a police report; a bad-faith refusal to pay within 60 days of demand can cost the greater of 25 percent of the recovery or $25,000, plus attorney’s fees (O.C.G.A. § 33-7-11(b)(2), (c), (j)).
- The Georgia Automobile Insurance Plan serves drivers in good faith entitled to coverage but unable to buy it normally, and excludes drivers with three clean years (O.C.G.A. § 40-9-100). Insurers must offer a defensive driving discount of at least 10 percent and a good student discount (O.C.G.A. §§ 33-9-42, 33-9-43).
- A plaintiff 50 percent or more at fault recovers nothing, and personal injury suits must be filed within two years (O.C.G.A. §§ 51-12-33(g), 9-3-33).