The amount of car insurance you need in Georgia is a complicated and personal question, but there are certain parameters you should keep in mind. Both your lender and the state of Georgia will have minimum insurance requirements. These minimum requirements, however, are typically too low for most drivers. This article walks through the various car insurance requirements in Georgia and helps you decide how much you should purchase.
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Georgia State Minimum Car Insurance Requirements
Georgia state law requires all drivers to purchase liability insurance coverage. If you get into an accident, liability insurance helps cover the costs of the person you hit. There are two types of auto liability insurance, bodily injury and property damage, both of which are required in Georgia. The below table defines these two types of liability insurance and the minimum coverage you will need for each:
| Description | Minimum Required Amount | |
| Bodily Injury Liability | Covers the medical bills of the person you hit | $25,000 per person / $50,000 per incident |
| Property Damage Liability | Covers the repair costs of the car or other property you hit | $25,000 per incident |
Georgia has these minimum insurance requirements in place to protect all drivers. Without these minimum requirements, accident victims may not receive payment to fix their cars or proper medical treatment! See our article on why car insurance is required for more information on why state requirements exist.
Unlike some other states, Georgia requires no minimum insurance beyond bodily injury and property damage liability. Other states have additional requirements including uninsured motorist, collision, and comprehensive insurance. For more information on Georgia’s state requirements, visit the Georgia Department of Motor Vehicles.
Can you purchase less than the state minimum insurance in Georgia?
No! Purchasing less than state minimum requirements (or deciding not to purchase insurance at all) is illegal. Driving without car insurance in Georgia is a misdemeanor and will likely result in several consequences. These consequences can include:
- Fines of $200 – $1,000
- License suspended for 60 to 90 days
The biggest risk of not carrying auto insurance in Georgia, however, is getting into a car accident without insurance. If you cause an accident and don’t have insurance you may be taken to civil court by the accident victim. In civil court, you may be required to pay a significant amount to the accident victim. Depending on how severe the accident is, this may cost you your savings and other assets (potentially even your house!).
Is it enough to just purchase Georgia state minimum insurance?
In 2019, the average injury from a car accident in Georgia resulted in a $18,449 payment to the accident victim, this is below the national average payment of $22,352. An average accident also resulted in a $4,568 payment to replace or repair the victim’s car – which is likewise below the national average of $4,659 (based on data from the NAIC).
Considering these averages, Georgia’s statement minimum requirements appear to be enough coverage, however, averages can be misleading. In more severe accidents, your costs may be significantly higher than these averages. For example, one law firm estimates spinal cord injuries settle for $350k-$500k on average! If you had state minimum insurance and caused a spinal cord injury your coverage wouldn’t be nearly enough!
Georgia Lender Requirements
If your car is financed or leased, you will likely have additional insurance requirements stipulated by your lenders. The best source to find your lender’s requirements will be speaking directly with your bank. Typically, however, your lender will require you to purchase comprehensive and collision insurance. A description of these two insurance coverages is below:
| Description | Required Amount | |
| Collision Coverage | Replaces or repairs your car if you get into a crash | The cost of replacing your car |
| Comprehensive Coverage | Replaces or repairs your car if it is damaged outside of a crash (for example if damaged by hail) | The cost of replacing your car |
Unlike Georgia’s state requirements – which protect people you might hit – lender requirements typically only concern your property.
What happens if you don’t insure a financed car in Georgia?
If you don’t purchase collision or comprehensive insurance for a financed car, you will likely be in violation of your lender contract. When this happens the lender can legally cancel your loan and repossess your car.
In lieu of repossession, a lender can also put “force-placed” insurance on your account. What this means is that the lender will obtain insurance on your behalf. They will then include the monthly cost of this insurance in your car loan payment. Force-placed insurance is bad for two reasons:
- Your insurance company has no incentive to price shop, so often force-placed insurance is more expensive than if you were to obtain insurance on your own.
- Force-placed insurance is designed to protect your insurance company, not you!
If you make the decision to purchase a financed car, it is important to make sure you can also afford enough coverage to satisfy lender requirements. You do not want your car repossessed or to be forced into an insurance policy by your lender.
How much car insurance do I need in Georgia?
Although most Georgians could benefit from increased insurance coverage, realistically the cost of increasing your coverage is expensive. Bodily injury liability is typically the most expensive, but also the most important type of insurance to purchase. This is because the cost of injuries is typically determined by lawsuits, and settlements can theoretically be limitless! Always prioritize increasing your bodily injury liability coverage over collision, comprehensive, or property damage liability insurance.
There is no rule for adequate insurance coverage, but you should balance what you can afford with your risk tolerance. For example, if you have children or other dependents you should consider purchasing more car insurance.
Can I have too much car insurance in Georgia?
Yes! At a certain limit, it is typically more cost-effective to purchase an umbrella insurance policy instead of continuing to increase your auto coverage limits. Generally, if you need car insurance coverage at or above the limits in the below table, umbrella insurance may be a more cost-effective option:
| Bodily Injury Liability Limits | $100k per person / $300k per accident |
| Property Damage Liability Limits | $100k |
Where to purchase car insurance in Georgia?
There are several ways to easily purchase car insurance online and in person in Georgia. We explore a few of the most popular ways to buy insurance below.
PolicyGenius
PolicyGenius has an easy-to-use customer buying process based on your answers to several simple questions. PolicyGenius is a broker that compares policies from a number of different insurance companies to make sure you are getting the best pricing and coverage for your need. PolicyGenius partners with a number of top insurance companies such as Nationwide, Mutual of Omaha, and Travelers.
SimplyIOA
Similar to PolicyGenius, SimplyIOA is an online brokerage platform that makes it easy for you to compare and buy car insurance. SimplyIOA also partners with many top-tier insurance companies such as Allstate, Progressive, and Liberty Mutual.
Local Georgia Brokers
Instead of purchasing online, you could also find a local insurance broker in Georgia. This can be a particularly good option if you appreciate having an in-person relationship with your broker or if you have complicated insurance needs. When selecting a local broker, you should conduct online research and in-person interviews to find the perfect fit for your situation. Finance Strategists keep a list of local insurance brokers in Georgia that can help you find your perfect match.